Let’s not beat around the bush – the quick answer to this question is – yes. However, what remains to be seen is by how much.
Too much fanfare, the Big Apple finally joined the online sports betting fraternity on January the 8th, 2022, having legalized in-person wagering in 2019. The opening weekend in New York kicked off with only four operators – Caesars, FanDuel, BetRivers, and DraftKings going live, yet, according to transaction reports from GeoComply, the volume between 9 AM and 9 PM was 5.8 million on the first Saturday, which was an eye-catching 2.5x more than any other legalized state.
Using data from Arizona and Connecticut – two states that have recently gone live with mobile sports betting – Bank of America analyst Shaun Kelley has remarked that based on the early numbers, the annual gross gaming revenue could hit $400 – $700 million. This would elevate New York to the country’s third largest mobile sports betting state within its first year.
Of course, customers will look at the bonuses and promotions. If the value is there, then this could well happen, which might make a 25% decrease rather conservative. A trump card New Jersey still has is that it offers legalized online casino gambling at sites like NJxGambling.com, whereas New York doesn’t. Therefore, it will still attract a certain percentage of New York gamblers for the foreseeable future.
More operators are lining up
A notable absence on the opening weekend was BetMGM. For some reason, it didn’t go live with the others, instead choosing to launch just over a week later on January the 17th. Following BetMGM, PointsBet opened its (virtual) doors on the 25th of January.
That brings the current total to six operators, but there are a few more names in the hat, including Bally Bet, Resorts World, and WynnBet (who are apparently looking for a buyer for its NY license for the cut price of $500 million). Of course, first-mover advantage helps take in the early profits. However, this is a marathon, not a sprint, and big bonuses backed by plenty of marketing can help the late arrivals capture a good amount of market share.
Putting up the numbers
To say online sports betting in New York got off to a flying start would actually be an understatement as it smashed all expectations and shattered records – and we haven’t reached Super Bowl weekend yet, which is expected to be a colossal wagering day for bettors in the Big Apple. Here are some of the facts and figures from NY’s first month.
- The original four operators took $150 million in bets during the first weekend.
- Over the first 9 days, $600+ million worth of bets were accepted.
- For the 23 days of January of which sports betting was legal, the six operators accepted over $1.6 billion in wagers – generating $113 million in revenue and $57 million in taxes for the state.
New Jersey is bracing itself for a mega hit
Will Hershey of Roundhill Investments fully expects New York to “quickly” become the largest licensed and regulated mobile sports betting in the United States, with estimates exceeding $1.1 billion in revenue by 2025.
Hershey also believes New Jersey’s monthly figures are likely to be hit by as much as 20 – 25% a month as bettors no longer need to hop across state lines to place their bets. Yet, something not mentioned is will New York manage to lure existing bettors from the Garden State the other way?
Story by Luke Windsor
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AFP
