According to data released by the New York State Gaming Commission, the total online sports betting revenue in New York State for September 2023 was $193.8 million, a 5.3% decrease from the same period last year, but an 8.8% increase from August this year. Despite the decline in revenue, the total sports betting amount reached $2.29 billion this month, a year-on-year increase of 10.6% and a month-on-month increase of 12.3%, indicating that betting activity is still increasing. The market hold rate was 8.47%, with significant performance differentiation among operators: FanDuel maintained market leadership with revenue of $77.6 million, accounting for 40% of total revenue; DraftKings ranked second with revenue of $66.7 million; Fanatics ranked third with $20.5 million. BetMGM and Caesars were tied for fourth, each with revenue of $10.9 million.
Overall Revenue and Betting Trends
Data from the New York State Gaming Commission shows that the total online sports betting revenue in September was $193.8 million, down 5.3% from $204.7 million in the same period last year. This declining trend contrasts with the growth in betting amounts, indicating market yield pressures.
Despite the revenue decline, the total betting amount in September reached $2.29 billion, a year-on-year increase of 10.6% and a month-on-month increase of 12.3%, showing that player participation is still increasing.
Market Performance and Hold Rate Analysis
The overall hold rate for New York sports betting in September was 8.47%, a ratio that measures the income retained by operators from the total betting amount. Fluctuations in the hold rate reflect the natural variation in betting outcomes and differences in operator risk management.
The combination of increased betting amounts and decreased revenue suggests that players had a higher winning percentage in September, or operators adopted more aggressive promotional strategies to attract players.
Operator Performance: FanDuel Maintains the Lead
FanDuel (under Flutter) continues to lead the market, with September revenue of $77.6 million, accounting for 40% of total revenue. The platform's total betting amount was $790.4 million, with a hold rate of 9.82%, the highest among major operators.
FanDuel's market dominance reflects its brand influence and user stickiness, maintaining a stable lead in the New York market.
DraftKings Secures Second Place
As the second largest operator in the market, DraftKings had a September revenue of $66.7 million, with a total betting amount of $870.6 million and a hold rate of 7.66%. Although its betting amount was higher than FanDuel's, its lower hold rate resulted in slightly lower revenue.
The competition between DraftKings and FanDuel remains intense, with both holding a significant share of the market.
Performance of Tier Three Operators
Fanatics sports betting platform maintained third place, with revenue of $20.5 million, total betting amount of $219 million, and a hold rate of 9.36%. The platform's strong hold rate performance demonstrates effective risk management capabilities.
As a relatively new market participant, Fanatics continues to consolidate its market position, gradually closing the gap with leading platforms.
Competition Among Mid-Tier Operators
BetMGM and Caesars each had revenue of $10.9 million, tied for fourth place in the market. BetMGM had a betting amount of $149.8 million, with a hold rate of 7.28%; Caesars had a betting amount of $152 million, with a hold rate of 7.17%.
The performance of these two operators is close, with intense competition and relatively stable market share and revenue size.
Performance of Small Operators in the Market
Rush Street Interactive had revenue of $3.6 million, betting amount of $45.9 million, hold rate of 7.84%; ESPN Bet had revenue of $2.8 million, betting amount of $47.1 million, hold rate of 5.94%; Bally Bet had revenue of $788,535, betting amount of $13 million, hold rate of 6.07%; Resorts World Bet had revenue of $229,357, betting amount of $2.8 million, hold rate of 8.33%.
Small operators have a smaller market share, but their hold rate performance varies significantly, reflecting their different business strategies and market positioning.
Market Trends and Influencing Factors
The revenue decline in September may be related to early-season performance fluctuations of traditional strong teams, adjustments in player betting strategies, or increased promotional activities by operators. The early stages of the professional football and basketball seasons in the U.S. are usually active in betting, but with high uncertainty in outcomes.
The maturing New York market may lead to intensified competition, with operators increasing promotional investments to attract and retain users, affecting the overall revenue rate.
Regulatory Environment and Tax Contributions
New York State imposes a 51% tax rate on online sports betting, one of the highest in the U.S. Revenue changes directly affect state government tax revenue, and the revenue decline in September may correspond to a decrease in state taxes.
The high tax rate environment encourages operators to optimize operational efficiency, focusing on user acquisition and retention cost control to maintain profitability.
Future Outlook and Market Forecasts
As major North American sports seasons enter key stages, betting amounts and revenues are expected to grow synchronously in the fourth quarter. The new NBA season and the mid-to-late NFL season typically drive increased betting activity and revenue growth.
The New York market continues to show a trend of consolidation, with leading operators having a clear advantage, but smaller platforms seek growth opportunities through differentiated strategies.
