The sports betting landscape in New York saw a noticeable dip in wagers last week, driven by the absence of college football action. Operators were left feeling the absence of major college football matchups, as NFL Week 15 took centre stage in the state’s sports betting scene.
Sportsbooks See Major Decline in Handle for Week Ending Dec. 15
In the week ending December 15, the Empire State’s nine online sportsbooks experienced a significant 12.8% decrease in overall wagering handle. This drop followed a week with very limited college football action, as only two FBS games were played: Army-Navy and the Veterans Bowl. The New York Gaming Commission reported a total of $447.5 million wagered, marking the lowest handle since the NFL season kicked off earlier in the fall.
The figure was particularly striking given that this was the third time in the past nine weeks that the handle fell below $500 million. The lack of college football meant that the NFL was left to carry the weight of betting activity, but even the appeal of NFL Week 15 couldn’t completely offset the drop in wagers from the previous week.
What Caused the Dip in Sports Betting?
The absence of college football had a direct impact on the volume of betting in the state. With just two games to draw in bettors, including the longstanding Army-Navy rivalry, sports fans seemed to pull back, unsure of where to place their bets.
Moreover, the weekly drop in betting action aligns with a broader trend, with December typically seeing a decline in wagering as teams hit their midseason stride and the holiday season disrupts betting habits. These seasonal patterns, combined with a week lacking major football events, left sportsbooks feeling the pinch.
Interestingly, despite the lower amount wagered, sportsbooks benefitted from a rise in the hold percentage. With fewer dollars flowing through the operators, the percentage of those wagers that became revenue actually increased from 7.2% to 8.2%. This might have provided some relief for the operators facing a drop in the handle.
FanDuel and DraftKings Face Struggles, Other Operators Follow Suit
FanDuel, the state’s leader in sports betting, saw a 13% decrease in its handle, bringing its total for the week to $185.3 million. Despite the drop in wagering, FanDuel did manage to turn a profit, with its revenue rising to $20.1 million, up from $16.7 million in the previous week.
On the other hand, DraftKings, which came in second place in terms of handle, posted a 14% drop in its week-over-week handle. With only $142 million wagered, this was the lowest total for the online operator since the start of the football season. DraftKings saw a corresponding fall in revenue, dipping by more than $2.5 million to $10.1 million for the week ending Dec. 15.
Smaller Operators Show Mixed Results
In a similar vein, other sports betting operators in New York faced fluctuating results. BetMGM, in third place, recorded a handle of $37.1 million, with revenue topping out at just $1.2 million. Caesars and Fanatics, meanwhile, saw $31.3 million wagered each, but their respective revenues were slightly higher, each generating around $2 million in earnings.
BetRivers faced a significant setback, posting a handle of under $10 million for the first time since October. ESPN BET, the newest player in the New York market, saw its lowest weekly handle of just $6.9 million, but the operator did report its best revenue since late November.
Looking Ahead: College Football Playoff May Offer a Boost
With the College Football Playoff kicking off this weekend, sportsbooks in New York are optimistic about an uptick in wagering activity. College football’s marquee games have the potential to bring back bettors and generate significant action, particularly as the NFL season winds down and focus shifts to the postseason.
Historically, New York sports betting sees a boost during major sports events, with the College Football Playoff set to bring in large amounts of money. As the playoffs advance, it’s likely that both the handle and revenue figures will see a rebound, and New York may return to its usual high-level wagering numbers.
The fluctuations in sports betting figures this week serve as a reminder of the highly competitive nature of the sports betting market in New York. With key college football games making a comeback, operators will be looking for a big finish to the year to close out 2023 on a high note.
