In the latest gambling news, we are taking a look at the largest sports betting market in the US. Taking in a billion dollars in handle each month is quite easy for New York sportsbooks. But are they able to sustain steady growth during the summer when the market is slower? Let’s find out.
In the US, sports betting activity tends to decrease during summer as you only have a few leagues running. Most of the action comes from the Major League Baseball (MLB) season. There are also other events happening, but it does not generate as much as basketball or football. Thus, sports betting reports are likely to show drops in sports betting handle on a month-to-month basis. For New York, they track both weekly and monthly numbers. Your sports betting software solution will offer a wide range of betting options throughout the year. This will give you more options to offer while the NBA, NCAA, and NFL are in the offseason.
It is worth noting that while we are seeing lower numbers, it does not mean that the market is suffering. The dip is due to sports activity, and does not reflect the state of the industry. In fact, sportsbooks are still earning millions during the summer. Thus, it is not cause for worry.
New York Sportsbooks in the Week Ending July 28
In the last full week of the month, sportsbooks took in $271.7 million in wagers. With more than a quarter of a billion wagered in just a week, one can plainly see that the market is hardly suffering. This number is 21% up from the previous week. It is also 24.7% higher than the same period last year. This signifies long-term growth in sports betting in the state. If you want to track the numbers on your own sportsbook, check out this bookie pay per head software. They have features that will allow you to generate reports that you can keep and analyze.
Meanwhile, revenue for New York sportsbooks increases by 36.7% to $34.3 million. The hold percentage is also great, sitting at 12.6%. This marks the fourth straight week that the hold has kept steady at above 11%.
This is the first time that New York sportsbooks are recording consecutive weeks with handles below $300 million. This trend was last seen in August of last year. Of course, experts in the industry are optimistic that in a few weeks’ time, the trend will shift upward. The NFL regular season is slated to begin on September 5, while college football starts a few weeks earlier, on August 24.
Threat in New York Sports Betting Tax Rates
The state earns quite a lot from sports betting. New York sportsbooks are taxed 51% of their revenue. This rate is one of the highest in the country. While the state earns well, sportsbooks struggle to find ways to make up for the loss in potential revenue. Usually, it means less attractive options in bonuses and promotions. Or, sportsbooks could offer slightly different lines to help them increase their hold percentage. But one sportsbook operating in New York is changing things.
Draftkings, a popular online sportsbook, will be implementing something new starting August 1. In states that have high tax rates (upward of 30%), bettors will pay a surcharge on every winning bet. This means that players who place wagers in their sportsbooks will pay 3-4% fee on all of their winning bets. This move will affect bettors in New York, Illinois, Pennsylvania, and Vermont.
This move by the sportsbook giant is widely seen as a political message to state legislators, urging them not to impose tax rates that are too high on the industry. It’s a risky strategy. But they hope this will deter states from setting high tax rates on sports betting.
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