The numbers are in, and New York state is not slowing down, based on the official data. The New York State Gaming Commission’s Friday announcement pinpointed the Empire State as the torchbearer in the sports betting industry. The state generated around $1.62 billion in the three weeks of betting action between January 8 and January 30.
Record-Breaking Handle Defying the Industry’s Logic
This has effectively doubled the opening-month record previously set by Arizona and has eclipsed mature markets such as Nevada, which posted $1.3 billion in October 2021, believed to be the biggest handle clocked in from wagering. Even New Jersey’s repeated passing of the one-billion threshold pales in comparison.
Not least because much of that Garden State sports betting handle was actually coming from New York. There are many reasons why this is happening. New York is incredibly populous, and in terms of density, there are many people in the territory.
Besides, New York beckons to neighboring states and now allows people to simply drive into the state’s borders to place a wager remotely. The introduction of online mobile betting has unleashed an avalanche of betting activity that is unlikely to subside, especially given that the Super Bowl, the nation’s single most bet on event, is just around the corner.
A total of seven sportsbooks are now competing in the market. Caesars Entertainment came on top in betting handle with $615.5 million, trailed by FanDuel and DraftKings. BetMGM, another promising venture, was fourth with $78 million. However, BetMGM had a later start in the race and only launched on January 17.
CBS MoneyWatch spoke to PlayUSA market analyst Eric Ramsey who explained the immensity and significance of the achievement, pointing out that some states had needed months or even years to get up to speed. However, a wave of legalization has stoked America’s interest in sports betting.
A contributing factor is consumers’ awareness of regulated and legitimate betting options as opposed to the offshore market, which has been gradually losing its clout on the mainland. Overall, New York has fetched $55 million in taxes from the $112.99 million gross gaming revenue total, making the state on track to amass $600 million in tax revenue by the end of 2022.
Taxable Income Unlikely to Slow Down as Brands Fight for Customers
Effectively, the Empire State is what all other states would have wanted to be. However, the state would still need a few months of calibration to be able to determine how much interest it may elicit. After the Super Bowl, the next big event on the ticket is March Madness, which is also associated with a record sports betting handle.
Meanwhile, advertising remains aggressive in the state, with brands pushing their names and campaigns across the board. This probably means that companies will be burning through cash to establish their foothold in the state and make sure that they acquire as many customers as possible before they deplete the fans who are most inclined to join sports betting.
Speaking to Yahoo Finance, Macquire Analyst Chad Beynon said that Caesars had overcome some challenges to secure around 40% of the current market share in New York. The question remains if brands will retain their customers in the long term and make them inclined to use the same brands across state lines. That remains to be seen.