Overview of Sports Betting Growth in New York
In a display of growth, New York State achieved a new record in sports betting handles with a staggering $2.3 billion in October 2024. This milestone surpasses the previous record of $2.11 billion set in November 2023, highlighting the continued expansion of sports wagering in the region.
Surge in Betting Activity
The October figures represent a significant increase from the $2 billion reported in the same month last year, showing a notable $300 million year-on-year increase. This growth follows a consistent upward trend observed from September 2024’s handle of $2.07 billion, indicating sustained interest and participation from bettors.
Revenue Insights and Leading Operators
Despite the record-breaking handle, Gross Gaming Revenue (GGR) experienced a decrease of 14.9%, amounting to $176.3 million for October. This decline is largely due to higher player winnings, especially with the NFL season’s start impacting outcomes. Nonetheless, compared to the same month in the previous year, there was a 5.8% increase in GGR, as per the New York State Gaming Commission.
FanDuel led the market, with bets totaling $907.6 million, despite a drop in monthly GGR to $77.3 million from $97.9 million. DraftKings was not far behind, with a handle of $813.7 million and a GGR of $58.9 million.
New Entrants and Market Dynamics
The entry of ESPN Bet into the market was notable, achieving a handle of $41 million and generating $3.2 million in revenue. Other key contributors included BetRivers and Fanatics, with the latter posting $12.4 million in revenue from a $178 million handle.
Regulatory and Market Trends
The report also emphasized a hold percentage of 7.6% across online sportsbooks in New York. Despite a 16% increase in handle, this only translated into a 6% gain in revenue, suggesting a competitive market where substantial player payouts are affecting operator profitability.
Consumer Spending and Market Challenges
In October 2024 alone, New York consumers wagered a record $2.32 billion on sports online, marking the highest amount ever bet in a single month in the U.S. This was a 14.9% increase over the previous year and a 15.4% increase over September’s figures. However, despite this record-setting handle, the revenue for October fell short of the state’s all-time high, totaling $176.3 million. This was a 5.7% increase from last year but still 14.5% behind the revenue in September and 16.7% below the record of $211.7 million set in January 2024. The hold across all licensees in October was 7.60%, a decrease from September’s 9.9%, indicating a challenging environment for operators as they navigated customer-friendly outcomes that favored bettors, especially during the early weeks of the NFL season.
Projections and Future Outlook
With the Professional and Amateur Sports Protection Act (PASPA) overturned in 2018, New York has become a significant player in the sports betting market. The state is on track to potentially exceed the previous fiscal year’s total wagering handle of $19.6 billion. With current GGR already over $1.17 billion and five months remaining in the fiscal year, stakeholders remain optimistic about future growth and profitability in this evolving market landscape.
New York City is at the heart of a fierce competition as two of the city’s most influential figures, Steve Cohen and Jay-Z, propose multi-billion-dollar casino projects. Both developments promise to inject substantial investments into the local economy, but they also face challenges as community concerns and political hurdles stand in their way.
Steve Cohen’s Vision for a Queens Entertainment Hub
Mets owner Steve Cohen has set his sights on transforming a 50-acre area near Citi Field in Queens into a massive entertainment hub. His ambitious Metropolitan Park project, which includes a new casino, aims to turn underutilized parking space into a bustling destination with parks, restaurants, shopping areas, and more. At the heart of the development lies a proposed casino to be managed by Hard Rock Entertainment as Cohen looks to secure one of New York’s limited casino licenses.
The project, estimated to pump $8 billion into the local economy, promises to bring over 23,000 jobs and revitalize the Willets Point area, long known for its autobody shops and scrapyards. Beyond gaming, Cohen’s plans include 20 acres of public parks, five acres of sports fields, and significant infrastructure improvements, such as enhancements to the Mets-Willets Point 7 train station, roads, and bike paths. Additionally, a “Taste of Queens” food hall and a live music venue are planned to showcase local culture.
However, the development is not without its challenges. A key issue lies in the site’s designation as parkland, requiring a state bill to “alienate” the land for commercial use. While Cohen has garnered significant support from local politicians, unions, and community groups, he faces opposition from figures like state Sen. Jessica Ramos, who has voiced her constituents’ concerns about introducing a casino to the area. Despite this, Cohen’s team remains optimistic, asserting they have ample time and support to push the project forward.
Jay-Z’s Bid for a Times Square Casino
Meanwhile, Jay-Z, through his entertainment company Roc Nation, is leading the charge to bring a casino to Times Square. Partnering with Caesars Entertainment and SL Green, Jay-Z’s proposed Caesars Palace casino aims to become a central attraction in one of the world’s most iconic districts. To win over skeptics and secure a coveted gaming license, Jay-Z has pledged a whopping $250 million in community grants to Hell’s Kitchen and the surrounding neighborhoods.
This community-driven approach begins with an immediate $15 million investment and ongoing contributions tied to 0.5% of the casino’s revenue. The funds will be managed by a community trust, ensuring that the money supports local improvements, such as childcare programs, job training, and after-school activities. Jay-Z emphasized the long-term vision of his proposal, stating, “Our vision is to give back to New York and ensure that Broadway, Hell’s Kitchen, and surrounding businesses all benefit—not just for a minute, but for the long term.”
Despite the financial promises, the Times Square casino project has encountered resistance. Local groups, including the Broadway League and the No Times Square Casino Coalition, argue that introducing a casino in such a densely populated area could negatively impact residents and the theater community. A poll conducted by the coalition found that 71% of Midtown residents oppose the casino.
In response, Roc Nation has engaged directly with the community, holding meetings with residents of nearby Manhattan Plaza, a well-known affordable housing complex for artists. To ease concerns, Roc Nation’s CEO Desiree Perez and former NYPD Commissioner Bill Bratton outlined security plans and the long-term benefits of the casino, offering $15 million in funding for the tenants’ association and an ongoing share of casino profits to support local initiatives.
The Race for New York’s Casino Licenses
Both Steve Cohen’s Queens project and Jay-Z’s Times Square proposal are competing for one of only three downstate casino licenses being issued by New York State. The competition is fierce, with other bids coming from high-profile entities, including Saks Fifth Avenue, Wynn Resorts, and Mohegan Sun. Each proposal must navigate a minefield of community concerns, political negotiations, and stiff competition, all while promising to bring substantial economic benefits to New York City.
As these casino giants battle for the state’s approval, only time will tell which project—if any—will come to life. One thing is certain: whichever project succeeds will dramatically reshape its respective corner of New York City, for better or worse.
