FanDuel displayed some NY sports betting grit to begin the fourth quarter as the overall market eclipsed $2 billion in monthly handle for the first time ever.
That is the first time in the post-PASPA US sports betting era that any single market took $2 billion in bets during one month. The record is not a quirk based on the calendar, either, as October 2022 and 2023 each had five NFL betting Sundays.
October’s record handle is a 30% spike over the same month last year and surpassed the previous NY sports betting record of $1.799 billion in January this year.
The record handle also resulted in record online sports betting revenue at $166.3 million. That meant a record $84.8 million was paid in monthly taxes for education, too, because of New York’s 51% tax on gross revenue.
Duel for NY sports betting crown
According to the October sports betting report, FanDuel reclaimed the top handle spot and set a new monthly operator record with $892 million.
It was a return for FanDuel after giving up ground to rival DraftKings over the summer.
DraftKings accepted $652.3 million in October bets online, an 8% drop from September. DraftKings was the only NY sports betting app to see a monthly handle dip.
FanDuel back up after summer change
FanDuel bounced back to begin the year’s final quarter, increasing its year-over-year handle by 46% in October.
It is a reversal from August and September, when DraftKings took in the most monthly handle. DraftKings posted its own New York monthly handle record in September as the NFL returned to the wagering menu.
In the third quarter, DraftKings accepted more online bets ($1.497 billion) than FanDuel ($1.476 billion.)
What changed in October?
The NFL typically drives the most US sports betting handle. However, the return of NBA betting may have contributed to FanDuel’s New York resurgence in October.
In a recent call with investors, Peter Jackson, CEO of FanDuel’s parent company Flutter, said its NBA product is a big differentiator for its app.
The company recently shared with investors, too, that the growing popularity of its same-game parlay product and more accurate pricing has driven higher margins. New York does not provide a monthly breakdown of bets by sports.
NY sports betting revenue ramp-up
Despite conceding the Q3 handle crown, FanDuel never relinquished the revenue throne, even extending its lead there in October. FanDuel cleared $83.1 million last month, an 8% bump from September and the most revenue in a single month by any NY sports betting app.
DraftKings drew even with FanDuel in revenue in July, though the monthly gap has widened since.
Resorts World Bet was the only other app to post monthly revenue gains in October. It earned $894,000, compared to $246,000 in September.
No eyes on NY promotional play
While New York promo data is not published, DraftKings spent heavily in several markets recently:
- In Michigan, sports betting deductions reached near-record levels in September. DraftKings claimed the most of any operator at $9.4 million, or 80.5% of its overall revenue.
- DraftKings led all PA sports betting operators with $11.5 million in September promos, accounting for nearly 60% of its monthly revenue.
- Maryland sports betting saw near-record promo deductions in September, too, with DraftKings leading the way at $8.8 million. Its promo spending accounted for nearly 60% of the operator’s online revenue before deductions.
New York sportsbooks cannot deduct promotional spending to reduce their monthly tax bill. That and the highest sports betting tax rate in the US likely keep promotions as a smaller portion of revenue.
