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Online sports betting in New York has been breaking records since its launch, and you can add another to the list. The state’s market is now the fastest in the country to reach the $2 billion betting handle mark.
In just over a month’s time, bettors in NY wagered more than $2 billion across the state’s six online sportsbooks. That pace should slow now that the NFL is in its offseason, but this number bodes well for the market long-term.
New York reaches $2 billion sports betting handle figure
The market fell just short of becoming the first to hit $2 billion within 30 days, posting a handle of over $1.98 billion in that time frame. In the weeks since, the market has easily eclipsed that $2 billion figure.
For context, Tennessee has yet to post an entire year in which it has recorded over $2 billion in wagers. It took neighboring New Jersey almost 10 months to reach $2 billion in dollars bet.
This is just the latest impressive feat. The market’s $1.6 billion in wagers over its first 23 days broke the record for a calendar month. What’s behind the meteoric launch? Several components worked in tandem.
First, the state’s sports betting apps spared no expense in promoting themselves despite the national-high 51% revenue-sharing deal with the state. Additionally, the state’s population and the presence of multiple active sports properties within its borders (Brooklyn Nets, Buffalo Bills, etc.) definitely helped out.
The biggest component might have been the timing, though. The NFL playoffs and the Super Bowl contributed greatly by providing the necessary events to wager on. During the week leading up to the Super Bowl, New Yorkers wagered over $472 million.
Those are all reasons why the market could see a drop-off in the coming months as well. That will especially be the case if one NY sports betting app’s actions spread to its competitors.
Will diminished marketing curtail betting handle?
Recently, Caesars announced it would “dramatically curtail” marketing for its online sportsbook across the nation. So far, Caesars has been the market leader in of the share of a handle in NY.
The reason? Greater than expected losses over the past fiscal quarter. Its online gambling business posted an adjusted EBITDA loss of $305 million during the quarter. That led to a recent decline in the company’s stock price.
So far, none of the other five active NY sportsbooks have made similar commitments publicly. However, others have experienced similar results. DraftKings stock recently took a dip as a result of a huge loss as well.
Controlling expenses is one of the easiest ways to boost that bottom line. Since the initial launch in NY is over and the NFL is in its offseason, now might be the perfect time to cut back, too.
The best test of one of these gambling company’s resolve to limit their marketing spend could be the start of the 2022 NFL season. If Caesars sticks to its guns here, the temptation to try to eat into their market share might prove great.
The onset of the 2022 NFL season should also give a fuller picture of what those sportsbooks can expect out of NY long-term. They couldn’t have asked for a better start. Any future market will be hard-pressed to match this debut in NY.
