Online NY sports betting handle fell shy of the $1 billion mark for the second straight month.
But that is not expected to continue now that NFL betting season is back.
Sportsbooks in the Empire State totaled $872.2 million in online sports betting handle during August. That follows $800.8 million in July handle.
New York sportsbooks exceeded the $1 billion threshold in online sports betting handle in each of their first sixth months since the Jan. 8 launch.
NFL season means NY handle will rise
This is the first full football season for New York with legal online sports betting. If the NFL season opener is any indication, it should be a lucrative campaign for the state.
Total geolocation volumes in NY for Thursday’s blowout victory by the Buffalo Bills over the defending Super Bowl champion Los Angeles Rams stood at 3.7 million, according to GeoComply. Total geolocation volumes were also up 210% in the Buffalo area from Sept. 1 (86,400) to Thursday (267,600.)
NY launched legal online sports betting during the final week of the 2021 NFL regular season. Its online sports betting handle numbers were massive: $1.67 billion in Jan. and $1.53 billion in Feb.
Could NY sports betting hit $2 billion in October?
Signup bonuses are not as massive this time around, as operators cut back on promo and marketing spend.
But online sports betting handle should still exceed $1 billion for the next several months.
In fact, PlayUSA projects the state’s first $2 billion month for total handle in October, with NY on pace for an $18 billion handle year.
NY sports betting tax rate might be stuck
That could to make it difficult for sportsbook operators to convince the state they need a tax break. Still, they are going to try. NY’s 51% tax rate, sportsbooks say, makes long-term sustainability a difficult proposition.
Lobbying and legislative efforts to reduce the tax rate via operator expansion figure to come back into play once next year’s state legislative session begins.
Through Sept. 4., NY online sportsbooks totaled $10.4 billion in handle, $793.9 million in revenue, and $404.9 million in tax revenue.
FanDuel Sportsbook’s domination in the state continues, with the operator gaining 43% handle share and 47% revenue share in August. DraftKings Sportsbook was second, with 28% handle share and 26% revenue share.