Digital Wager Wire highlights the most important events impacting the domestic and international sports betting and gaming industry each week throughout the year.
New York Sets New Monthly Sports Betting Record
Despite New York’s record-setting $2.3 billion handle in October, spurred by the start of the NBA and NHL regular seasons in conjunction with a full slate of NFL and college football games, a relatively modest hold of 7.6% brought revenues of $176.35 million.
However, sportsbooks received almost as much action, $2.2 billion in November, but a much fatter bottom line as the hold soared to 10.2%, producing a record-setting revenue high of $231.7 million, the highest monthly revenue in the state and the nation. November’s less favorable outcomes to the bettors delivered far greater returns for the sportsbooks.
It was the fourth time since mobile sports betting launched in New York that the combined monthly revenue of the sportsbooks surpassed $200 million, a staggering 53% higher than November 2023. The state made out even better than the sportsbooks due to its nation-high tax rate of 51% on adjusted gross revenues, which saw its coffers swell by $118.1 million after November’s receipts were tabulated.
Leading Operators and Newcomers
- FanDuel led all challengers with the highest handle ($921.2 million) and the most revenue ($102.6 million)
- DraftKings was a distant second with a handle of $745.4 million, generating revenues of $77.1 million
- It was a long way to third place, but that distinction belonged to a relative newcomer to the mobile sports betting industry, Fanatics, which reported a $170.2 million handle and $13.8 million in revenues for the month.
- BetMGM had a slightly smaller handle than Fanatics at $167.7 million, but due to its higher hold, its revenues inched past Fanatics at $14.4 million in November.
- Caesars also had a lower handle but a higher hold, leading to more revenue than Fanatics, as it posted a handle of $158.1 million, which produced $14.1 million in revenues.
- The next tier down saw BetRivers with a $47.6 million handle, which delivered $4.3 million in revenue, while ESPN BET posted $38.9 million in accepted wagers and $3.5 million in profits.
- Bally Bet revealed $10.2 million in accepted bets yielding $1.2 million, while Resorts World posted a handle of $5.4 million rendering $567,000 in revenue.
Will Feds Regulate Sports Betting?
State legislators and regulators have taken great pride in crafting rules and governance for the sports betting industry in their respective states, and, as the old axiom goes, if it’s not broke, don’t fix it.
The SAFE Bet Act Proposal
However, some DC politicians believe it is broken and not enough guardrails to protect the masses from themselves. They want to impose federal guidelines that would supersede any state regulations, and a hearing in Washington is expected to occur next week on that very topic.
In September, U.S. Congressman Paul Tonko (D-New York) and Senator Richard Blumenthal (D-Connecticut) announced their co-sponsorship of the bill, Supporting Affordability and Fairness with Every Bet, or the SAFE Bet Act. This would be a multi-pronged approach to fostering safer betting and is described as “the first comprehensive legislation that would address the public health implications inherent in the widespread legalization of sports betting.”
“State regulation is faint-hearted and half-baked. That’s why we need a national standard. Not to ban gambling but simply to take back control over an industry that is out of bounds,” Senator Blumenthal said, discussing the need for the proposed bill.
If passed, it would be a temporary ban on sports betting in all states that have currently adopted it and would require those regulatory agencies to apply to the Department of Justice for licenses to restart sports betting in those respective states.
Backlash Against the Bill
However, the backlash to the bill has been swift and unequivocal. Chris Clyke, senior vice president of government relations for the American Gaming Association, said, “Six years into legal sports betting, introducing heavy-handed federal prohibitions is a slap in the face to state legislatures and gaming regulators who have dedicated countless time and resources to developing thoughtful frameworks unique to their jurisdictions and have continued to iterate as their marketplaces evolve.”
