The New York sports betting market experienced a notable slowdown in July, with overall wagering activity falling to its lowest point in the past year. However, the headline isn’t entirely negative—despite the decline in betting volume, gross gaming revenue (GGR) actually rose by 10.6% year-over-year, reaching $155.8 million.
FanDuel once again led the market with $61.4 million in revenue, followed by DraftKings, highlighting the continued dominance of the industry’s two largest operators in the state.
Understanding the Dip in Handle
In sports betting, the total amount wagered by players is referred to as the "handle." July’s handle marked the lowest figure since last summer, a sign that seasonal factors and market dynamics played a significant role in the downturn.
July is traditionally a slower month for sports betting in the United States. With major leagues like the NBA and NHL in the offseason, and the NFL still in preseason preparations, the sports calendar is relatively quiet. While Major League Baseball (MLB) is active during this time, it typically doesn’t generate the same betting volume as football or basketball, especially outside of marquee matchups or playoff races.
Another possible contributor to the dip is the maturing of the New York sports betting market. After an explosive launch in early 2022, which saw bettors flock to new platforms with promotional offers and bonus bets, the novelty has worn off for many casual players. Operators have also scaled back the size and frequency of promotions, which may have impacted activity levels.
Why Revenue Still Rose
While the total amount wagered dropped, operators actually made more money compared to last July. This can be explained by the hold percentage—the proportion of wagers retained as profit after paying out winnings.
In July, sportsbooks in New York held a higher percentage of bets than in the same month last year. This could be due to a combination of factors, including:
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Fewer upsets and bettor-friendly outcomes – If favorite teams win more often, sportsbooks tend to pay out less.
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More parlay bets – Parlays, where bettors combine multiple outcomes into a single wager, carry a higher house edge and tend to boost operator revenue.
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Changes in betting behavior – With fewer promotional credits in play, bettors may be wagering smaller amounts but with riskier bets that have a higher margin for the house.
The result was $155.8 million in GGR for July, representing a healthy year-over-year increase despite the lower handle.
FanDuel and DraftKings Maintain Their Lead
FanDuel continued to dominate the New York market in July, bringing in $61.4 million in revenue. DraftKings held the second spot, maintaining a strong foothold despite the overall market slowdown.
Together, these two operators control the majority of sports betting revenue in the state. Their advantage lies not just in brand recognition, but also in product quality, customer retention strategies, and expansive betting options. Both platforms have also been active in integrating live in-game betting, which appeals to a growing segment of younger bettors.
Other operators, such as Caesars Sportsbook, BetMGM, and BetRivers, have maintained a presence but remain well behind the leaders in terms of market share.
The Bigger Picture: New York’s Sports Betting Landscape
Since the legalization of online sports betting in January 2022, New York has quickly become the largest regulated market in the United States. The state regularly leads the nation in handle, with billions wagered annually.
However, the high tax rate—51% on gross gaming revenue—has been a constant point of discussion. While the tax structure brings significant revenue to the state budget, it also limits the profitability of operators, especially when combined with reduced promotional activity.
Some industry experts believe that lowering the tax rate could lead to more competitive offers for bettors and potentially boost overall handle. Others argue that the current model is working well for the state’s fiscal needs and that seasonal fluctuations, like July’s slowdown, are simply part of the industry cycle.
Seasonality and What’s Next
The dip in July is unlikely to concern operators too much, as the sports calendar is about to enter its busiest period. The NFL season kicks off in September, which traditionally brings a surge in betting activity. The return of college football, NBA preseason, and NHL action will also contribute to a dramatic increase in handle.
In fact, industry analysts expect the next few months to deliver some of the highest betting volumes of the year. With major sports overlapping in the fall, operators will have ample opportunity to regain any lost momentum.
Potential Challenges and Opportunities
While the long-term outlook for New York sports betting remains positive, there are still hurdles to navigate. High competition, regulatory compliance, and shifting consumer preferences will shape the market’s trajectory.
Operators may look to differentiate themselves through improved betting technology, expanded live betting markets, and partnerships with sports teams to deepen fan engagement. There is also the growing possibility of integrating emerging betting formats, such as micro-betting on specific plays or events within a game.
From a regulatory standpoint, any changes to the state’s tax policy or advertising rules could significantly impact the industry. Lawmakers will likely keep a close eye on both consumer protection and state revenue as the market evolves.
Final Thoughts
July’s slowdown in New York sports betting activity is a reminder that even the largest markets are subject to seasonal fluctuations. Yet the fact that gross gaming revenue still climbed by over 10% year-over-year tells a more optimistic story about operator efficiency and profitability.
FanDuel and DraftKings remain the clear market leaders, and their dominance will likely continue as the industry moves into the high-volume months of the NFL and NBA seasons. For the state, sports betting continues to be a major revenue driver, even in slower months.
As the fall sports calendar approaches, bettors, operators, and regulators alike will be watching closely to see how New York’s market rebounds—and whether it can break new records in the months ahead.
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