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Arguably the hottest sports betting market stateside by default as a result of being the 4th most populous state and the largest to offer competitive regulated sports gambling, New York confirmed its worst revenue week since March of last year during last weekend's NFL Conference Championship games.
The state reported just a 6% hold percentage compared to the typical 8.5% hold. This number represents the percentage of all wagered money that the sportsbook keeps after paying out winners. For example, a hold of 8.5% means the operator retains $8.50 of every $100 wagered before expenses.
Only one online operator produced a hold of over 6%. That was Bally Bet, which realized 9% on a mere $4-million handle.
FanDuel is considered the leading player in New York State with $197.4 million wagered during the week ending Jan. 25. Its hold percentage came in at 5.8%.
DraftKings, No. 2 in Empire State market share, reported just a 4.5% hold from $184.1-million in betting handle.
Then there was Caesars, which reported a jaw-dropping 1.4% hold on a $35.2-million handle.
Not surprisingly, New York is one of a handful of states taking an aggressive stance against prediction markets, which in theory at least, can operate in the state "tax free". New York State collected between $132 million and $133 million in tax revenue from sports betting operators last month.
The New York State Gaming Commission previously sent a cease-and-desist to prediction market operator Kalshi for offering what the commission considers unlicensed sports wagering to New York residents. Lawmakers have also worked on legislation to combat prediction markets.
The state was successful in passing a law banning sweepstakes casinos from operating in the state though New York is not currently among the US states currently offering regulated real money online casino gambling.
- Chris Costigan, Gambling911.com Publisher
