Caesars, FanDuel and DraftKings dominate the New York sports betting market

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In the first four weeks of mobile sports betting in New York, Caesars Sportsbook captured a 35.4% market share of $1.98 billion in total management. FanDuel and DraftKings follow closely with 31.9% and 22.9%, respectively. The three remaining sportsbooks collectively held the remaining market share of 9.8%.

Two of these sportsbooks, BetMGM and PointsBet, were launched a few weeks after mobile sportsbooks went live in New York. The third, BetRivers, launched alongside Caesars, FanDuel and DraftKings on January 8, but drew a fraction of the handful its competitors did in the full four weeks.

BetMGM is uniquely positioned to grow its market share in New York, and although BetRivers’ market share is low, its gross margin paints a more favorable picture.

New York Mobile Sports Betting Market Leaders

That DraftKings and FanDuel were among the top sportsbooks in New York is no surprise. They are two of the largest sports betting companies in the United States.

But Caesars Sportsbook’s aggressive marketing seems to be paying off. It offered unprecedented welcome bonuses worth up to $3,300 to new customers.

Whichever way bettors cut it, Caesars, FanDuel and DraftKings were favorites among New York bettors in the first four weeks of the mobile sports betting market.

New York Mobile Sports Betting Market Laggards

Two sports bets launched late in New York. BetMGM went live a week after the launch of mobile sports betting in New York. PointsBet went live two weeks after launch. But BetRivers was live from day one and was still battling the three major sports betting brands.

Even after a late launch, BetMGM captured a 5.7% market share. This is low compared to the first three operators, but more than double the last two entrants. Among the January laggards, BetMGM has the best chance of capturing a larger share of the New York mobile sports betting market.

PointsBet could also evolve into a more competitive position. Its high-risk, high-reward PointsBetting product is a unique offering and might appeal to high rollers in New York. But BetMGM still has a mainstream awareness that PointsBet might struggle to overcome in New York.

At a glance, BetRivers seems to be the most disturbing brand of the bottom three. It had the same four weeks of sports betting as the three major operators, but struggled to capture market share. (Its market share is actually 0.04% lower than PointsBet.)

But BetRivers had higher profit margins than BetMGM and FanDuel, enhancing brand image from unique snapshots featured in unfavorable charts.

New York Mobile Sports Betting by Winning Percentage

Even though some sportsbooks have attracted more attention, others have kept (or won) a higher percentage of money wagered. This is where some of the smaller sportsbook brands outperformed their larger counterparts in January. This is a significant advantage for operators because New York taxes gross income at a tax rate of 51%. Thus, the higher the gross margin of a book, the better it will be able to bear this large tax bill.

Caesars Sportsbook had the highest management percentage among New York operators, with a gross margin of 9.2%. After Caesars DraftKings and PointsBet had gross margins of 7.9% and 6.1%, respectively. DraftKings captured a much larger market share than PointsBet and retained more of the money bettors wagered.

Low-wait sports betting in New York

BetMGM had the lowest gross margin at 3.3%, but we’re looking at a small sample at the start. FanDuel did a little better with a gross margin of 4.8%. Finally, BetRivers came in ahead of the bottom three with a gross margin of 5.8%.

These seem like small spreads, but they mean millions of dollars. Keeping an additional 0.5% of $100 million in handful of bets means an additional $500,000 in gross gaming revenue.

But the main reason the big brands give up revenue in the first weeks of sports betting is the same reason they’re popular with bettors: sports betting offers generous bonuses and promotions to new customers as they trying to gain market share. So, especially in new markets, sportsbooks often settle for lower revenues if they acquire customers.

This is what happened to FanDuel. In its first weekend of January, FanDuel lost $2.7 million. But over the next four weeks, it grossed $63.2 million. FanDuel attracted customers early on through bonuses and made money.

BetRivers has done a better job of keeping its money than FanDuel and BetMGM. BetRivers only had one week of negative gross earnings compared to FanDuel’s two. But BetRiver’s losses were smaller, so its gross margin was higher in the first four weeks. If BetRivers can maintain small advantages, that’s a potential edge it can have in the highly competitive New York mobile sports betting market.

What’s next for New York Mobile sports betting

There are still three largely untraceable sportsbooks in New York. WynnBET was launched on February 3, so its impact remains negligible in New York. He wrote just over $251,000 in the handful and held over $33,000. WynnBET still needs to grow its customer base in New York before drawing any serious conclusions about its performance and potential in this market.

BallyBet and Resort World Bet have not yet launched in New York.

Caesars Sportsbook, DraftKings and FanDuel will likely remain the most popular sports betting brands. Based on its performance in other markets and its marketing spend in New York, BetMGM has the best chance of improving its market position.

BetRivers may not be improving its market share, but it could still carve out a comfortable space for itself in New York.

However, PointsBet and BetRivers are the most vulnerable to customer losses from other sportsbook brands approved for launch in New York. All three major carriers have large customer bases that can afford the nibble. PointsBet and BetRivers do not have this luxury. Thus, the recent entry of WynnBET and the impending entries of BallyBet and Resort World Bet are the most dangerous for PointsBet and BetRivers.

The first four weeks of sports betting in New York produced clear winners and clear losers. But together, these sports betting brands accepted more money in bets than they had received in several months in smaller markets. Even a small chunk of the New York mobile sports betting market is valuable, and every bookie would do well to hold on to their share.

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