New York completed its second year of sports betting on March 31, 2024. The American state registered positive growth despite a high tax rate, something that goes as high as 51%. The growth rode on the shoulders of FanDuel and DraftKings, with many more players expected to establish their share of the market soon enough.
The collective handle of FanDuel and DraftKings was $1.39 billion, and the combined revenue was approximately $121.84 billion. The handle represents 73.4% of the total market, while their revenue makes up 80.3%. Their dominance is evident from the fact that WynnBets and Pointbets withdrew because of the changing dynamics of their presence. Interestingly, the high tax rate was not an issue for them, as per reports.
New York’s first fiscal year ran from April 1, 2022, to March 31, 2023. The second fiscal year ran for the next 12 months till March 31, 2024. The second fiscal year for the state saw an increase in contributions to the State Education Fund, also referred to as SEF. Contribution to SEF surged by nearly 20.8%, jumping from $743.98 million to $898.5 million. It has clearly set expectations for the upcoming fiscal year to achieve a higher figure.
FanDuel and DraftKings are having a splash in the market but their dominance could soon be challenged. Many new players are looking to enter the market – including some of the best sports betting sites in the USA. This includes ESPN Bet. Fanatics Sportsbook NY has already marked an entrance back in 2023 after buying the US assets of PointsBet.
Fanatics outperformed PointsBet in New York, with an average handle of $41.9 million. This includes $53.2 million worth of handle earned in the previous month, March 2024. Now, ESPN Bet has its sights set on New York. It is anticipated to launch in partnership with PENN Interactive and Worldwide Leaders in Sports.
These figures and developments come at a time when Albany is exploring the possibility of housing online casinos. If added, that could add a larger slice to their meal. Thereby, contributing more to the Fund via tax revenue. New York is expected to bag big on tax considering it saw an increase without having to change the tax structure anywhere else in the region.
Moving forward, an early competition between Fanatics and ESPN is on the books. FanDuel and DraftKings will look to sustain their positions.
New York citizens may soon switch to Bet365 as their preferred online horse betting app. Bet365 currently lacks a sports betting license but has navigated its way around that aspect to still enter the region. It further backs the excitement that New Yorkers have in their minds for sports betting and online horse betting.
