Sports betting operators in New York ended 2024 with a mixed bag of results. December saw a 6.6% hold on wagers—a figure that significantly affected revenue. Despite a 12% increase in money wagered compared to December 2023, total winnings fell by 20%, leaving operators with slimmer margins to celebrate.
New York’s Overall Sports Betting Performance
The total handle for December 2024 stood at an impressive $2.3 billion, yet the resulting winnings for online sports betting (OSB) operators amounted to just $150.4 million. This sharp drop in revenue comes as New York remains one of the most lucrative sports betting markets in the United States.
Breaking down the numbers:
- Total handle: $2.3 billion
- Operator winnings: $150.4 million
- Hold percentage: 6.6%
The discrepancy between increased betting volume and reduced profitability reflects tighter odds or bettors having a particularly lucky month.
DraftKings and FanDuel Face Contrasting Fortunes
FanDuel maintained its position as the market leader, with $926 million in wagers—an 11% increase from the same period last year. Despite this, its revenue dropped 25% to $70.6 million. Still, FanDuel outperformed the market average with a hold of 7.6%.
DraftKings, on the other hand, saw its handle decrease by 5%, bringing in $732 million in bets. Revenue suffered even more, plunging 29% to $46.5 million. Its hold percentage lagged behind at 6.4%, marking a stark contrast with FanDuel’s stronger performance.
- FanDuel: $926M handle (+11%), $70.6M revenue (-25%), 7.6% hold
- DraftKings: $732M handle (-5%), $46.5M revenue (-29%), 6.4% hold
BetMGM and Caesars Show Diverging Trends
Among the other major players, BetMGM recorded a significant 41% year-over-year increase in handle, reaching $178 million. However, its hold was among the lowest at 5.4%, resulting in $9.6 million in revenue—a modest 18% gain.
Caesars Sportsbook faced a more challenging month. Its handle fell 22% compared to late 2023, amounting to $158 million. Revenue plunged 45% to $8.7 million, with an even lower hold of 5.5%.
Summary of Performance:
- BetMGM: $178M handle (+41%), $9.6M revenue (+18%), 5.4% hold
- Caesars: $158M handle (-22%), $8.7M revenue (-45%), 5.5% hold
Smaller Operators See Varied Outcomes
Fanatics made headlines with a staggering 500% surge in money wagered, climbing to $172 million. This led to $9.8 million in revenue, outpacing both BetMGM and Caesars in profitability. Conversely, Resorts World Bet struggled, with its handle dropping by 35% to $7 million and generating just $500,000 in revenue.
Other Notable Figures:
- Fanatics: $172M handle (+500%), $9.8M revenue
- Resorts World: $7M handle (-35%), $0.5M revenue
BetRivers and ESPN Bet reported steady but unspectacular figures. BetRivers handled $46 million, earning $2.9 million in revenue. ESPN Bet, despite a slightly higher handle of $49 million, managed only $1.3 million in winnings. This indicates a lower hold percentage compared to its peers.
Key Takeaways from December 2024
December’s results underline the volatility in New York’s sports betting market, where even large operators face revenue swings despite strong betting volumes. The industry remains highly competitive, with operators vying for handle share while balancing profitability challenges.
For FanDuel and Fanatics, the month showcased their ability to maintain strong market positions, albeit with some revenue setbacks. Conversely, Caesars and ESPN Bet face growing pressure to improve their hold percentages to keep pace with their competitors.
