FanDuel Surpasses $1 Billion In Estimated New York Sports Betting Tax Payments

FanDuel looks to have surpassed $1 billion in mobile sports betting tax payments to the state of New York after an estimated $6.5 million in receipts were due for the week ending June 30, according to figures from the New York State Gaming Commission.

The mobile juggernaut is the runaway leader in handle and revenue among the nine sports betting apps available in the Empire State. FanDuel has amassed a vast collection of firsts and milestones in the 2 1/2 years since digital wagering launched in New York in January 2022. It finished with a 10.1% hold for this past week, collecting $12.8 million in sports betting revenue from close to $127 million in handle as its year-to-date winnings topped $500 million and moved within $32.7 million of $2 billion overall.

The week’s total handle of $322.6 million was down 3.1% from the week ending June 23 and the lightest in New York since $312.8 million in bets were placed the week ending Sep. 3 — the last full week before the start of the 2023 NFL season. Week-over-week revenue plummeted 23.6% to $29.2 million as the combined 9% hold by the nine operators was 2.4 percentage points lower than last week.

All nine sportsbooks, though, finished with positive revenue for the week that resulted in estimated tax payments totaling $14.9 million — $4.6 million less than the previous seven-day span.

FanDuel Keeps Chugging Along

FanDuel entered the month of June having made $963.8 million worth of tax payments to the state, and the five weekly totals from figures supplied by the NYSGC showed revenue that amounted to $82.3 million. The 51% tax rate based on those winnings would have resulted in close to $42 million in remittance to the state.

The timing of the collections from the first week of action, which spanned from May 27-June 2, could determine whether FanDuel officially went over the $1 billion mark in tax payments when June’s full-month figures are released by the state agency. Based on the $5.89 billion in total state tax revenue in the post-PASPA era when including the $84.1 million projected from New York based on its five weekly June reports, FanDuel has accounted for roughly 17% of the total U.S. state tax revenue solely from their mobile platform in the Empire State.

It was the eighth straight week FanDuel attained a 10% or better win rate, leaving it one shy of matching its longest streak established from July 31 to Sep. 25, 2022. FanDuel had a double-digit hold in 19 of the 26 weeks covering the first half of 2024, while only two were below the 7% industry standard.

DraftKings was the only other mobile operator with more than $2 million in winnings for the week, reaching $9.7 million with an 8.5% hold on $113.5 million worth of bets. It surpassed $4 billion in year-to-date handle with the June 30 figures and has a 9% hold for the year, resulting in $364.5 million in revenue.

Caesars edged out BetMGM for third in revenue, coming within $2,300 of $2 million with a win rate of 7.2% against $27.9 million in handle. Its revenue was $23,400 higher than BetMGM, which had an 8.6% hold from $22.9 million worth of action.

Fanatics Sportsbook extended its run of double-digit holds to four consecutive weeks — something predecessor PointsBet never accomplished — after attaining an 11.1% win rate to claim $1.8 million in revenue from $16.5 million in handle. Fanatics has a hold just shy of 11% in that span, collecting $6.8 million in winnings from $62.2 million worth of bets.

A Nice Week for Bally Bet

Bally Bet posted its fourth-highest revenue total at $215,800 and led all operators with a 13.4% hold as it posted $1.6 million in handle. It was the sixth time overall Bally Bet topped $200,000 in weekly winnings, with four of those occasions coming in the last 10 weeks.

BetRivers was held under a 5% hold for the third time in four weeks as it took $545,700 in revenue from $11 million in handle. Resorts World moved within $31,000 of $4 million in revenue for the year after notching an 8.5% hold in keeping $157,400 of the $1.9 million wagered through its app. WynnBET was unable to top the 7% industry standard hold in back-to-back weeks for the first time since Aug. 20-27, landing at 5.5% in collecting $20,300 worth of winnings from $371,100 in handle.