New York OSB revenue slides in September
In spite of an increase of 5% in handle, to US$2.4 billion, winnings for online sports betting (OSB) operators in New York State fell 17.7% in September. Books collected US$159.4 million in revenue. According to figures released by Deutsche Bank, this represented a hold measure of 6.6%.
The tightest hold, 9%, was achieved by theScore Bet, successor to ESPN Bet. It kept US$2.8 million out of US$31.6 million wagered with the book.
The largest share of win fell to FanDuel, with US$63.7 million. It held at 7% of US$904.7 million bet.
FanDuel’s principal rival, DraftKings, won US$56 million, for a 6.7% hold. Its handle share was US$840.1 million.
Holding at the same percentage, BetMGM won US$10 million. Its handle share was US$148.4 million.
Caesars Sportsbook won US$7.9 million out of US$152.7 million wagered. It held at a state-low 5.2%.
All other books combined for US$19 million, from handle of US$324.2 million. Their aggregate hold averaged 5.9%.
David McKee is an award-winning journalist who has three decades of experience covering the gaming industry.
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The Backstory
September underscored the volatility behind a growing handle
New York’s September online sports betting report showed a familiar tension for the largest U.S. market: betting volume can rise while operator revenue falls sharply. Handle climbed 5% to US$2.4 billion, but revenue dropped 17.7% to US$159.4 million as books held just 6.6%. That result put the focus less on consumer demand, which remained strong, and more on the margin swings that can define monthly sports betting performance.
The comparison with earlier months shows why New York is watched closely by operators and investors. In July, the same market produced a very different outcome when a stronger hold lifted operator winnings. Books kept 11.4% of US$1.9 billion wagered, generating US$214.4 million in revenue, according to the New York State Gaming Commission. The July result, detailed in a report on New York’s hold-driven July rebound, showed how operator results can surge even without a comparable jump in wagering volume.
September moved in the opposite direction. More money was bet, but more of it was returned to customers. In a market with high tax rates and intense brand competition, that distinction matters. Revenue, not handle, determines how much operators retain before taxes, promotional costs and other expenses. A low-hold month can pressure margins even when the headline handle number suggests healthy demand.
FanDuel and DraftKings still set the market’s pace
The September figures again confirmed the two-company structure of New York’s online sports betting market. FanDuel led revenue with US$63.7 million from US$904.7 million in wagers, holding 7%. DraftKings followed with US$56 million from US$840.1 million in handle and a 6.7% hold. Together, the two operators accounted for nearly three-quarters of the state’s online sports betting revenue and a similar share of handle.
That dominance has been consistent, but the monthly gap between the two brands has shifted depending on hold. In February, DraftKings was the only one of the five publicly traded New York operators to increase revenue while FanDuel, BetMGM, Caesars Sportsbook and theScore Bet all declined. The earlier data, covered in an analysis of DraftKings’ February outperformance in New York, showed DraftKings revenue up 18.7% despite a small handle decline, while FanDuel remained revenue leader but posted a double-digit drop in winnings.
FanDuel’s position has often been tied to its ability to generate stronger hold, partly because of its reliance on parlays. In July, it held 13.2% in New York and led the market with US$86.2 million in revenue despite trailing DraftKings in handle. In September, its 7% hold was enough to preserve first place, but not enough to prevent the broader market decline. DraftKings’ near-identical hold showed that the month’s weakness was not limited to one book. It reflected a marketwide compression in margins.
Midtier books remain exposed to hold swings
Below FanDuel and DraftKings, the September results highlighted how thin the margin for error can be for smaller or midtier operators. BetMGM won US$10 million from US$148.4 million in wagers, holding 6.7%. Caesars Sportsbook generated US$7.9 million from US$152.7 million in handle, with a state-low 5.2% hold. TheScore Bet, successor to ESPN Bet, posted the highest hold at 9% but on a much smaller base, winning US$2.8 million from US$31.6 million wagered.
That pattern is not unique to New York. Across large and midsize states, lower-share operators can show meaningful percentage changes month to month without altering the competitive order. The difference is that in New York, where the tax rate is among the highest in the country, weak hold can quickly erode the value of handle growth. Caesars’ September result illustrates the point: it drew more wagering than BetMGM but produced less revenue because its hold was materially lower.
Maryland’s April results offer a contrast. Online books there won US$62.1 million from US$566.1 million in handle, holding 11%. FanDuel led that market with a 12.9% hold and US$29 million in revenue, while DraftKings held 9.9% and won US$16.9 million. The state’s performance, described in a report on Maryland’s April online sports betting growth, showed how a higher hold can turn moderate handle growth into stronger revenue expansion. New York’s September report showed the reverse.
Promotions are a second pressure point
Hold is only one side of sportsbook economics. Promotional spending also shapes net revenue, particularly in newer markets or in periods when operators seek to defend share. New York’s September report focused on handle, revenue and hold, but the broader U.S. market shows how free bets and incentives can complicate comparisons between states and operators.
Missouri’s early market data provided a recent example. In February, promotional allowances dropped to US$11 million, equal to 36% of revenue, after reaching 61% of winnings in January. The decline, outlined in coverage of Missouri’s slowing online sports betting promotions, suggested a market beginning to normalize after launch. Books held 11.3% on US$277 million in handle, generating US$31 million in gross revenue, while FanDuel and DraftKings led the state by both handle and revenue.
The Missouri example matters because it shows the path many markets follow: heavy launch incentives, rapid customer acquisition and then a gradual shift toward profitability. New York is no longer a launch market, but competition remains intense. Operators still must balance customer retention against the cost of incentives, especially when monthly hold weakens. If customers win more in a given month, any elevated promotional spend can compound the hit to operator margins.
That is why handle growth alone does not settle the question of market health. A sportsbook can take more bets, report a lower hold, spend to maintain share and end up with less economic value than the handle number implies. September’s New York data fit that broader industry reality.
Michigan shows how sports betting and iGaming can diverge
Michigan’s September performance provides another useful comparison because it combines online sports betting with a large iGaming market. Sports betting revenue there jumped 27% to US$56.3 million on US$557 million in handle, with books holding 10.1%. The gain came even though handle rose only 4%. That result, covered in a report on Michigan’s September online sports betting and iGaming surge, again showed the leverage that hold can have on monthly revenue.
Michigan also showed the stabilizing role of online casino revenue. iGaming revenue rose 16% to US$300 million in September, far exceeding sports betting revenue. FanDuel, BetMGM and DraftKings each produced substantial casino revenue, while Fanatics, BetRivers, Hard Rock Bet and Caesars Palace Online contributed to a broader market. For diversified operators, iGaming can offset some of the volatility of sports betting because casino revenue tends to be less dependent on sports outcomes in a single month.
New York does not yet have legal online casino gaming, leaving sports betting as the central online wagering product. That makes monthly hold fluctuations more visible and more consequential. Operators active in both states can absorb volatility at the company level, but New York’s state market results remain tied almost entirely to sports betting outcomes.
The stakes are tax revenue and operator discipline
New York’s September decline does not signal waning interest in online sports betting. A US$2.4 billion monthly handle shows sustained demand and reinforces the state’s role as the country’s most important online sports wagering market. But the revenue slide is a reminder that the business is not driven by handle alone. Outcomes, bet mix, pricing, promotional strategy and competitive pressure all affect what books keep.
For the state, lower revenue also means less taxable operator win, even when wagering activity grows. For operators, it increases the importance of disciplined spending and risk management. FanDuel and DraftKings remain entrenched at the top, but the September numbers show that even market leaders are exposed to unfavorable sports results and lower hold. For smaller rivals, the challenge is greater: they must grow or defend share without relying on scale that the two leaders already possess.
The broader record across New York, Maryland, Missouri and Michigan points to the same conclusion. U.S. online sports betting is still growing, but monthly performance can turn quickly. September in New York was not a demand problem. It was a margin problem, and in mature sports betting markets, margin is increasingly where the story is.
