Sports betting appears to be a top-heavy industry.
In the 22 states that reported their June totals, betting handle shrank 18.6 percent, when comparing June to May. Of the reporting states, they combined to handle $5.75 billion after posting $7.06 billion the previous month, according to CBS Sports.
The revenue figures detailed a similar story. The states registered $545.8 million in June revenue for June, down from $747.2 million in May.
Still, with weighted help from New York, Connecticut and Maryland, industry insiders reportedly point to rapid year-to-year growth.
New York remains the industry leader. By far.
Since January 2022 when the state legalized sports betting, New York has continued dominating with record-setting handles and revenues. North Carolina was one of the year’s biggest surprises. Since its inception in March, the $395 million the Tar Heel State generated in June was its poorest performance.
Connecticut and Maryland remain two of the fastest-growing markets. Both states have nearly doubled their handling and revenue from June 2023. Connecticut’s handle rose from $91.4 million 14 months ago to $148.6 million last June. Its revenue increased from $9.8 million to $15.6 million.
Maryland’s handle, meanwhile, jumped from $254.5 million to $384.7 million and its revenue spiked from $27 million to nearly $40 million.
Among the states that had not yet reported their data included some potential major players, Arizona, Colorado, Illinois, Nevada, Ohio and Virginia, according to CBS Sports.
Here is a look at the states who registered the most wagered revenues for June:
- New York, $134.2 million
- New Jersey, $60.1 million
- Pennsylvania, $43 million
- Massachusetts, $42.3 million
- North Carolina, $40.3 million
Top 10 sports betting US States by handle for June
New York $1.48b
New Jersey $748.4m
Ohio $530.6m
Massachusetts $509.4m
Nevada $481.6m
Pennsylvania $464.5m
North Carolina $398.3m
Maryland $384.7m
Colorado $350.4m
Tennessee $342.2m(Source @AlTruda73) pic.twitter.com/FRV9eTBSel
— Waterhouse VC (@WaterhouseVC) August 4, 2024
DraftKings Adding Gaming Tax Surcharge In 4 States
During its recent 2Q24 earnings call, DraftKings Sportsbook CEO Jason Robins announced the company will begin processing a gaming tax surcharge in Illinois, New York, Pennsylvania and Vermont on Jan. 1, 2025.
To offset high tax rates and get the average rate down to approximately 20 percent, the company will enforce the additional tax on bettors’ winning tickets.
DraftKings is the first sports betting company to implement a tax surcharge.
Robbins called the move “normal,” per CBS Sports.
Early posts on social media criticized DraftKings’ move. How much longer will it be until other companies, like FanDuel, follow suit?
This is what the DraftKings surcharge might look like beginning January 2025.
Will be applied to net winnings in Illinois, New York, Pennsylvania and Vermont to lower DraftKings’ effective tax to 20% in those states. pic.twitter.com/DSbafHdowc
— Sam McQuillan (@sam_mcquill) August 1, 2024
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