New York online sports betting saw a robust performance in August, recording $1.43 billion in bets as the state prepares for the lucrative NFL and college football seasons. According to the New York State Gaming Commission, the state generated $124.9 million in gross gaming revenue for the month, leading to more than $63.7 million in tax revenue.
For the first time since May, DraftKings topped FanDuel in terms of online sports betting handle, reporting $526.7 million in August compared to FanDuel’s $511.6 million. However, FanDuel remained ahead in gross gaming revenue, posting $52.6 million compared to DraftKings’ $43.3 million.
New York ended August on a high note, with $401.4 million in bets placed during the week ending Sept. 1—the state’s highest weekly total since May. Gross gaming revenue for the week was $30.4 million, positioning the state for a successful football season. Both NFL and college football saw their first full weekends of action as bettors flocked to place wagers.
The New York State Gaming Commission reported the following weekly handle totals for its nine active sportsbooks:
ESPN BET, expected to launch in New York by late August, has yet to go live despite securing market access through a $25 million deal with Wynn Interactive Holdings. While PENN Entertainment CEO Jay Snowden promised the launch would coincide with the start of the college football season, the app remains unavailable as of mid-September.
Since the state’s January 8, 2022 launch, FanDuel is the only sportsbook to surpass $19 billion in total handle, solidifying its position as the top operator in New York. Here are the total handles for each sportsbook since launch:
For the week ending Sept. 1, New York’s nine sportsbooks reported $30.4 million in gross gaming revenue, resulting in $15.5 million in tax revenue at the state’s 51% online sports betting tax rate. Here’s a breakdown of weekly gross gaming revenue:
Since launching in January 2022, here are the total gross gaming revenues for New York’s sportsbooks:
As New York barrels into the heart of football season, both NFL and college football are expected to drive substantial growth in sports betting handle and revenue. With DraftKings gaining ground on FanDuel and the much-anticipated launch of ESPN BET on the horizon, the Empire State remains a key player in the online sports betting market.
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Lachlan Murdoch, CEO of Fox Corporation, confirmed that the company intends to exercise its option to purchase an 18.6% stake in FanDuel, one of the leading US sports betting platforms. Murdoch made the announcement during the Goldman Sachs Communacopia & Technology Conference on Tuesday, emphasizing Fox’s strong belief in the future of sports betting and its potential to engage sports fans.
While Murdoch did not specify a timeline, he noted that Fox has until 2030 to act on the option. However, the cost of exercising the option increases each year due to a 5% escalator, making it more advantageous for Fox to move sooner rather than later. As of June 30, Fox’s 18.6% stake is estimated to be valued at $6.5 billion, according to Goldman Sachs. This represents a significant increase from Fox’s initial valuation of $3.7 billion, with the escalator driving the price up to $4.3 billion.
Despite the increasing cost, Murdoch made it clear that Fox will not miss out on the opportunity:
“We’re not going to leave $2 billion on the table. We think that option will continue to grow in value over the next six years.”
According to Goldman Sachs, FanDuel is valued at approximately $35 billion, making Fox’s potential stake in the company a highly valuable asset. FanDuel is currently majority owned by Flutter, with Boyd Gaming holding a 5% stake.
FanDuel’s robust position in the US sports betting market, offering services in 22 states (including Washington DC) and mobile betting in 19 states, underlines the importance of this acquisition for Fox.
As part of the process to acquire the 18.6% stake, Fox will need to be licensed as a gaming operator, Murdoch said:
“To fully monetize the option, we need to be licensed as a gaming operator, even with only 18.6%.”
Fox has already started working with state regulators to secure the necessary gaming licenses.
FanDuel has cemented its position as a top contender in the sports betting industry, with a strong presence across the US. The company’s growth potential and market leadership make Fox’s investment highly strategic, especially as the sports betting sector continues to expand.
While FanDuel declined to comment on the development, Murdoch’s remarks make it clear that Fox Corporation sees a significant future in sports betting, not only as an investment but also as a way to further engage with sports fans.
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