In July, New York's online sportsbooks reported a gross gaming revenue (GGR) of $214.4 million, even as betting volume decreased from the prior month. Data from the New York State Gaming Commission revealed that the state's eight licensed operators received $1.88 billion in wagers, which converted into an 11.4% hold, marking one of the year's best monthly revenue outcomes.
This scenario illustrates a key aspect of sports betting economics: operator profitability can be influenced not only by the volume of wagers but also by the hold percentage. Although July saw a reduction in handle from June's historic levels, a much stronger win rate compensated for this drop, leading to a meaningful increase in revenue.
Following a record monthly handle of $2.25 billion in June, New York's betting market experienced a cooling period in July, with total wagers falling by 16.7% month over month. Nonetheless, revenue rose significantly. Gross gaming revenue shot up 83.5%, moving from $116.8 million in June to $214.4 million, reflecting a swift recovery in sportsbook margins. In July, operators retained 11.4% of wagers, an improvement over June's 5.19%.
This fluctuation emphasizes how monthly revenue can vary independently from betting activity, especially when outcomes favor bettors, impacting operator hold temporarily before stabilizing.
Despite the monthly decrease, New York's sports betting market continued to grow on an annual basis. Compared to July 2022, total wagering volume saw an increase of 34.3%, while gross gaming revenue rose by 37.8%, demonstrating robust growth in both customer activity and operator earnings. Six out of the eight licensed sportsbooks experienced higher revenue than in June, benefiting from improved hold across the board.
The upcoming 2026 FIFA World Cup added an unusual boost to the summer betting scene in the U.S., which typically slows down after the NFL, NBA, and NHL seasons. With Major League Baseball being the primary betting focus during these months, the World Cup brought in substantial international wagering activity throughout July. Additionally, the tournament fostered stronger sportsbook margins, as certain moneyline market outcomes, such as Spain’s victory over Argentina in the final, proved advantageous for operators.
In terms of competition, DraftKings and FanDuel maintained their positions as market leaders, accounting for a considerable share of New York's online betting activities. DraftKings led the state with a handle of $661.5 million for the second consecutive July, achieving an 11% hold equating to $72.9 million in gross gaming revenue. In contrast, FanDuel reported the strongest financial performance, accepting $651.2 million in wagers with a 13.2% hold, yielding $86.1 million in gross gaming revenue — nearly double its earnings from June and surpassing DraftKings for the month.
July highlighted that sportsbook performance isn't solely determined by betting volume. While handle is a prominent metric in the industry, profitability is ultimately about how effectively wagers translate into revenue. New York's recent data reveal that even with lighter betting activity, more favorable pricing outcomes and results can significantly boost operator earnings. As the NFL season approaches, sportsbooks aim to build on the margin recovery seen in July while sustaining the record levels of customer engagement achieved throughout the year.
