Sports betting in New York sets all-time mobile record in first month

New York State broke mobile sports betting record in less than a month of operation, according to Data released Friday by the New York State Gaming Commission.

The Empire State handled approximately $1.62 billion in sports betting from Jan. 8 to Jan. 1. 30, more than doubling the previous opening month record set by Arizona. The number also eclipses the record number of sports bets processed in a month, set by New Jersey with $1.3 billion in October 2021.

Caesars Entertainment (CZR) led the state with $615.5 million managed while FanDuel (PDYPYF) and DraftKings (DKNG) were second and third on the list. BetMGM (MGM), which spear mobile sports betting in New York on January 17, processed just over $78 million.

The record action in New York surprised some Wall Street gaming analysts and supported their long-term bullish calls on sports gaming stocks.

Sports betting in New York State so far. (Yahoo finance)

“Some states have taken months or even years to reach a racing pace and New York seems to have hit the ground running,” said Eric Ramsey, chief market analyst for PlayUSA Network, Recount CBS MoneyWatch. “There is no doubt: New York is already the largest sports betting state in the country.”

The New York State Gaming Commission also listed each company’s gross gaming revenue, which is the total amount the companies take home after paying out winning bets. New York taxes 51% of the company’s gross gaming revenue, the largest of any gaming state. In less than a full month, New York totaled more than $55 million in taxes out of a total of 112 $.99 million in gross gaming revenue.

The large numbers are in part due to a busy sports schedule over the past month that included playoff football for college and NFL teams as well as regular-season games in the NHL and NBA.

LAS VEGAS, NV - JANUARY 9: The New York New York Hotel & Casino entrance is seen on January 9, 2022 in Las Vegas, Nevada.  Conventions, players and record gaming profits have once again returned to Sin City despite a wave of infections and hospitalizations from the Omicron Covid virus.  (Photo by George Rose/Getty Images)

The entrance to the New York New York Hotel & Casino is seen on January 9, 2022 in Las Vegas, Nevada. (Photo by George Rose/Getty Images)

“Very aggressive marketing”

New York has the largest population of any state to legalize mobile sports betting, so analysts were expecting a sizable handful.

Additionally, some of the extra bets were driven by unwavering marketing campaigns.

“It was a very aggressive marketing and promotional launch,” Macquire analyst Chad Beynon told Yahoo Finance Live on Tuesday. “So we expect companies that are exposed to New York at this point to lose money in the short term from a customer acquisition perspective. Now, in terms of market share, DraftKings, FanDuel and MGM were the industry leaders for most of 2021.”

Meanwhile, he noted, Caesars Entertainment “was a little behind on the game, just considering an acquisition that was in the works.” The company secured the highest betting handful while offering to match deposits up to $3,000 during an NFL playoff game.

“They have over 40% market share for betting in New York,” Beynon said, adding, “So the big question is, do they have the technology and really the connection to retain those customers to keep them on? the digital site and then maybe improve the omnichannel experience, sending them to Las Vegas and to their properties across the country?”

Josh is a producer for Yahoo Finance.

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