New York’s December Sports Betting Windfall Dwindles as Low Hold Takes a Toll — CDC Gaming

Online sports wagering (OSB) providers experienced a modest 6.6 percent hold on bets throughout December, resulting in a negative impact on earnings. Profits for operators decreased by 20 percent when compared to December 2023, even though the total amount wagered increased by 12 percent.

In total, the handle came close to $2.3 billion, yielding earnings of $150.4 million for OSB providers. DraftKings’s share of the betting pool diminished compared to November, while FanDuel successfully maintained its market position.

DraftKings reported a five percent decline in total wagers, and revenue dropped by 29 percent. Its cumulative handle amounted to $732 million with profits of $46.5 million.

The largest portion of the handle was attributed to FanDuel, totaling $926 million, reflecting an 11 percent increase from December 2023. Nonetheless, revenue decreased by 25 percent to $70.6 million, and its hold percentage was an above-average 7.6 percent, contrasting with DraftKings’s 6.4 percent.

BetMGM witnessed a share of handle growth of 41 percent year-on-year, whereas Caesars Sportsbook experienced a decline (down 22 percent from late 2023), with BetMGM’s $178 million surpassing Caesars’s $158 million.

The figures resulted in earnings of $9.6 million for BetMGM (an 18 percent increase) and $8.7 million for Caesars, a 45 percent decrease. Both operators maintained hold percentages significantly below average, with Caesars at 5.5 percent and BetMGM at 5.4 percent.

Fanatics experienced a remarkable 500 percent rise in betting amounts, reaching $172 million. Conversely, only $7 million was wagered with Resorts World, marking a 35 percent reduction.

Much smaller variations were observed for BetRivers and ESPN Bet: $46 million was wagered with the former and $49 million with the latter.

Fanatics outperformed both BetMGM and Caesars with its $9.8 million in profits. Although ESPN Bet exceeded BetRivers in betting volume, it generated a mere $1.3 million compared to BetRivers’s $2.9 million. Resorts World Bet recorded $500,000 in revenue for the month.