Caesars takes early lead in New York with almost half of overall sports betting GGR
Caesars brought in $22.7m, or 47.1% of statewide sports betting GGR.
The preliminary figures were released by the New York State Gaming Commission and include totals from the first four licensees approved for launch in the market; Caesars Entertainment, FanDuel, DraftKings and BetRivers.
The period for which revenues were disclosed ran from 8 January to 16 January, the day before New York’s fifth approved licensee, BetMGM, entered the market.
Four further operators (WynnBet, Bally Bet, Resorts World and PointsBet) are yet to launch in the state pending regulatory approval.
US market leader FanDuel came in second for New York revenue during this preliminary period, handling $200.4m in bets, or 33.2% of state total, while generating $14.1m in revenue or 29.3% of total state GGR.
DraftKings also took significant market share, handling 22.3% of the state’s wagers at $134.4m to generate GGR of $10.9m.Together, the trio handled more than 98% of New York’s betting volume over the opening period.
Fourth operator BetRivers (Rush Street Interactive) handled just $10.6m, or 1.8% of the state total, in bets. This led to just $446,696 in revenue, or 0.9% of total state GGR.
One caveat to note is that Caesars offered the most generous customer acquisition bonuses of any operator, including a $3,000 deposit match on the opening weekend and $300 in free bets, which is hardly sustainable in the medium to long-term.
With a controversial 51% tax rate on online sports betting revenue, the state of New York stands to receive $24.6m in tax revenue from the market’s first eight days alone.From the daily average suggested by these early figures, it can be extrapolated that New York’s mobile sports betting market stands to generate around $2.2bn in annual revenue from $27.51bn in handle, and some $1.12bn in taxes.
These figures would make New York the largest sports betting market in the US by a significant margin, with the nation’s current largest sports betting market, New Jersey, generating $816.0m in revenue from $10.94bn in handle for the full year 2021.
Legalised sports betting is off to a flying start in the Empire State, with figures released last week showing that some 878,000 unique users had registered 1.2m betting accounts in the first 10 days following launch.
Those figures represent more than 4.5% of the entire population of New York state.