[Mobile Games] 2022 In Review: The Empire State’s Mobile Leviathan Arises

[FazzNoth]

 

As the first of the four large “Holy Grail” states to expand into mobile sports wagering, there was plenty of pressure on operators and bettors in New York a year ago to meet expectations once it became clear that then-Gov. Andrew Cuomo would legalize it — even if it would not be his preferred state-run monopoly via lottery.

The application process settled upon by the New York State Gaming Commission made for strange bedfellows. One group approved had three of the industry’s heaviest hitters in FanDuel, DraftKings, and BetMGM, with Bally Bet rounding out the quartet. The other, which had multiple parties aligned under the Kambi betting platform, included Caesars Sportsbook, BetRivers, PointsBet, WynnBET, and Resorts World.

Bet365 was left at the altar having met the technical standards, but not doing enough to grow overall tax revenue for New York. PENN Entertainment, which runs Barstool Sportsbook, was left on the outside looking in. So was rapper and mogul Jay-Z, who aligned himself with Fanatics as part of a second application submitted by Kambi.

When nine approved operators were announced in November, the other ground-shaking part of it was the tax rate — all FIFTY-ONE PERCENT of it, an unprecedented figure for a competitive market in the still relatively nascent U.S. sports wagering betting space. New York would have the nation’s highest tax rate on operator revenue by a wide margin, with Pennsylvania a distant second at 36%.

Yet for all the grumbling from operators about the high tax rate, they willingly paid the price of admission to take their chances on the biggest market to date opening to them. Fast forward almost 12 months later, and there have been a few clear winners as New York has rewritten the post-PASPA record book when it comes to monthly handle, operator revenue, and tax revenue.

 

January: The emperor throws down gauntlet
There is something wonderful about launch month in a new market with various offers of risk-free bets, matching deposits, and other assorted giveaways as operators hope to land loyal customers and market share. Caesars opted for maximum chaos in the Empire State with an astonishing promotion of a $300 free bet in addition to matching a customer’s initial deposit up to $3,000. It was an unprecedented launch offer, one that CEO Tom Reeg had hinted in 2021 would be needed given the rebrand from William Hill.

Caesars got its short-term and long-term rewards, aided by the most exciting NFL postseason in recent memory. It snared more than 40% of the market share for handle in the first three weeks of live wagering in New York and totaled $487.4 million in the process. That lead was not sustainable, given the database depth of customers that FanDuel and DraftKings had amassed through daily fantasy play, but the effects of Caesars’ promotion remain visible. It is a strong No. 3 for handle in New York’s weekly reports and generated more than $2.6 billion handle through mid-December.

New York’s mobile debut was a smash hit in all key metrics, as the state grabbed the “triple crown” of monthly national records for handle, operator revenue, and state tax receipts. New York has recorded eight of the top 10 monthly handles in the post-PASPA era.

https://sportshandle.com/2022-in-review-new-york-mobile-sports-betting/