As the fiscal year ended on March 31, 2023, New York’s online sports betting market reached new heights, setting a record as the destination with the highest yearly online sports betting expenditure across regulated states in the United States. The total wagers for the 12-month period surged to an impressive 19.8% increase from the previous year, amounting to a massive $19.64 billion, a significant rise from FY22’s $16.40 billion.
This increase wasn’t just in the volume of bets placed; gross gaming revenue also experienced a substantial uplift, with a 20.6% spike year-on-year, marking yet another record for the burgeoning market. It is noteworthy that New York only inaugurated its legal online sports betting market in January 2022, which means that FY23 is just the second full year since the regulation began.
The lead in the New York market, consistent with the first year of operation, was held by Flutter Entertainment’s powerhouse FanDuel. Throughout FY23, FanDuel not only processed bets worth $8.10 billion but also generated a towering $845.8 million in revenue, asserting its dominance in the industry.
The runner up in this highly competitive sector remained DraftKings, which saw revenues of $619.6 million from an impressive $7.02 billion in online wagers. Caesars claimed the third spot, accruing revenue of $140.4 million, backed by a substantial handle of $2.03 billion.
BetMGM also crossed the billion-dollar line in terms of wagers, processing bets totaling $1.26 billion over the year and recording $86.1 million in revenue. Behind the leaders, Rush Street Interactive gained significant ground, clocking in $37.8 million in revenue from a $643.6 million handle.
The recently introduced Fanatics brand, which successfully replaced the PointsBet brand last month, reported revenues amounting to $23.5 million, with bets reaching $361.9 million. Meanwhile, Resorts World managed to draw revenues of $5.5 million, complemented by a handle of $79.9 million.
Wynn Interactive, with $103.7 million in wagers, managed to generate $3.5 million in revenue. Completing the list, BallyBet, despite pausing its operations for a four-month hiatus (from July to October) within the reporting period and only relaunching in November, garnered $1.7 million in revenue from $43.7 million in bets.
The specifics of March, the final month of fiscal year 2023, carried some curious data. The handle rose by 3.4% to $1.85 billion but revenue saw a 6.8% decrease, settling at $151.7 million as bettors turned out to be more successful in their wagers.
On a month-to-month comparison, the total amount wagered saw a 4.5% increment from February’s $1.77 billion, and revenue rose notably by 15.5%. FanDuel led the charge with a revenue of $73.1 million and a handle of $781.2 million. DraftKings maintained its position behind FanDuel with $48.8 million in revenue from $612.2 million in wagers. Caesars, BetMGM, and other contenders such as Rush Street, Resorts World, Wynn Interactive, and BallyBet, though with smaller figures, also contributed to the overall growth in the market for the month.
The remarkable performance of New York’s online sports betting industry in its second full fiscal year of operation highlights not only the state’s dominance in the regulated US market but also sets a precedent for the potential growth trajectory in the years to come. The sustained increase in handle and revenue signals a robust engagement amongst bettors and a thriving sports betting ecosystem in one of the nation’s most populous states.
