It was a November to remember as New York sportsbooks reported a record-setting $2.1 billion handle in the 30 days of November. The Empire State has now become the fastest state in the nation to reach $25 billion in accepted sports bets.
Sizzling November in New York
New York has been fertile ground for online sportsbooks and despite having the highest tax rate in the industry, tied with only New Hampshire and Rhode Island, the feeding frenzy of sports betting makes it worthwhile.
November was just the most recent evidence of the treasure trove of sports betting customers in the Empire State, with a staggering $2.11 billion in accepted sports wagers. The sports betting season is in November at full mast as all the major professional and college sports are in action.
The NFL, NHL, NBA, as well as college football and basketball, swell the sports betting menu this time of year, but with the college football regular season wrapping up, there will only be bowl games to wager on in December.
The previous handle record in New York occurred in October when sports bettors wagered $2.01 billion. Despite the shorter month (by one day) November bettors played even harder and set the highest one-month handle total in the post-PASPA era.
We should also note that November 2023 was 36.1% higher than the previous November. However, because of a lower hold, or win rate, the revenue of $150.9 million was 9.3% lower than October’s record-setting revenue of $166.3 million.
FanDuel Sets the Pace
FanDuel and DraftKings have been swapping spots at the top of the sports betting food chain, but it was the former that ruled in November. The two giants of the U.S. gaming industry devoured nearly 80% of the New York market in November, which is nothing new.
FanDuel’s $925.4 million was up from its $891.9 million handle in October, while DraftKings accepted $732.1 million, topping its $652.3 million handle the previous month.
Caesars Sportsbook also set a personal record high in New York and reached the $200 million mark for the first time this fiscal year. BetMGM saw $120.6 million in sports bets, the third consecutive month in which it crossed the $100 million threshold in New York.
Sportsbooks reported a combined $74 million in revenue for the month while the state reaped $77 million for its education fund.
Going Ho Into December
The sports betting fever has carried over into December as the New York State Gaming Commission reported mobile sports betting revenue of $56.9 million for the week ending December 10, marking the third-highest revenue-producing week in the state’s 101 weeks since mobile betting launched.
Although the numbers are enormous, so too is the tax rate in New York. Its 51% on gross gaming is equivalent to a 70% effective tax rate, said DraftKings CEO earlier in the year.
“We believe that a tax rate that is more in line with the rest of the market would strike a good balance between the state’s need to meet or exceed its fiscal projections while giving licensed operators the ability to provide a best-in-class experience for their customers — one that rivals any state,” Robins said.
With these record-setting months becoming more frequent, it is unlikely there will be any reduction in the near future.