PointsBet’s Brutal Loss Puts Damper on New York’s Weekly Sports Betting Revenue
Every sportsbook in the Empire State held a win rate of over 6.9% except PointsBet.
While eight of New York’s online sportsbook operators enjoyed a profitable week, a ninth endured in pure misery.
In its final week before Fanatics Sportsbook took over the platform, PointsBet suffered an $8 million loss on a handle of $43.9 million, its highest ever, during the period ending Feb. 25.
The second-worst loss ever in New York was only topped by the $9.6 million BetMGM dropped during Super Bowl week earlier this month.
According to figures from the New York Gaming Commission, sports betting operators combined to generate a handle of $413.9 million and revenue of $37.2 million. The hold of 9% rises to double-digits when subtracting PointsBet’s rough week.
The latest weekly handle was up 1.7% but revenue fell 2.1% from the previous period. It marked the 19th time in 20 weeks that New York sportsbooks have accepted more than $400 million in a week.
Big boys combine for big revenue
FanDuel led New York operators with a handle of $157.4 million, while DraftKings came in second after accepting $130 million in wagers. The two online sportsbooks combined to record over $36 million in revenue and enjoy double-digit holds.
Caesars finished behind Fanatics for fourth with a handle of $35.3 million while BetMGM wasn't far off at $30.8 million. Every sportsbook in the Empire State held a win rate of over 6.9% except PointsBet.
New era in New York
Fanatics launched online operations in the Empire State on Thursday following the migration of PointsBet’s platform. The budding operator purchased the Australian company’s U.S. holdings for $225 million in 2023 and is now live in 15 U.S. states.
New York is the fourth jurisdiction in 2024 to migrate to Fanatics, which hopes to capitalize on the highest-grossing sports betting state in the U.S.
PointsBet generated over $30 million of wagers in January for the first time since Feb. 2023. The sportsbook never produced revenue of over $3.1 million in a single month.
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