Sports Betting in the Empire State
Financial Markets: New York sports gambling revenues, Las Vegas hotel room rates, New Jersey gaming earnings
J.P. Morgan's Joseph Greff shares an insightful perspective on sports betting in New York, here's a breakdown for March 14:
"Recent weekly online sports betting figures (for the week ending March 9, 2025) revealed by the New York Gaming Commission show a quarter-to-date Gross Gaming Revenue (GGR) growth of 19%, while handle increased by 22%. This implies an 8.9% hold rate as compared to the 9.0% hold rate in the comparable 2024 period.
For the week ending March 9, 2025, GGR experienced a 12% year-over-year increase, and handle soared by 29%, suggesting a revised hold rate of 7.4% versus the 8.5% during the March 10, 2024, period.
Here's a sector-wise breakdown by operator:
Top Operators:
FanDuel:
- Quarter-to-date, GGR witnessed a 10% year-over-year surge, and handle was up by 8%, implying a 10.9% hold rate (a 19 basis point increase from the previous year). Quarter-to-date GGR share rests at 46% (as compared to 50% in the comparable 2024 period), while handle share is at 37% (versus 42% in the comparable 2024 period). For the week ending March 9, 2025, GGR dropped by 5%, and handle decreased by 1%, resulting in an 8.5% hold rate (a 36 basis point decline from the previous year).
DraftKings:
- Quarter-to-date, GGR increased by 5% year-over-year, and handle spiked by 28%, signifying a 7.8% hold rate (a significant drop of 169 basis points from the previous year). Quarter-to-date GGR share stands at 31% (as compared to 36% in the comparable 2024 period), while handle share is at 36% (versus 34% in the comparable 2024 period). For the week ending March 9, 2025, GGR surged by 24%, and handle jumped by 63%, resulting in a 6.8% hold rate (a 215 basis point decline from the previous year).
BetMGM:
- Quarter-to-date, GGR soared by 121% year-over-year, and handle increased by 29%, generating a 7.9% hold rate (a noteworthy jump of 329 basis points from the previous year). Quarter-to-date GGR share is currently at 6% (as compared to 3% in the comparable 2024 period), while handle share is at 7% (equal to the comparable 2024 period). For the week ending March 9, 2025, GGR experienced a slight increase of 2%, and handle stayed stable at 2%.
Caesars:
- Quarter-to-date, GGR inched up by 15% year-over-year, and handle faltered by 18%, leading to an 8% hold rate (an impressive increase of 228 basis points from the previous year). Quarter-to-date GGR share remains consistent at 6% (as compared to the comparable 2024 period), while handle share dipped to 7% (as compared to 10% in the comparable 2024 period). The March 9 results saw a 33% decrease in GGR, as handle dropped by 22%, resulting in a 6.5% hold rate (a decrease of 103 basis points from the previous year).
ESPN BET:
- Quarter-to-date, ESPN BET's GGR share sits at 2%, while handle share is at 2%."
Las Vegas Strip Report
Truist Securities' Barry Jonas offers insights on room rates along the Las Vegas Strip on March 13:
"The results from our Las Vegas Strip room rate survey highlight a stable Q1, overcoming the challenges posed by the intense Super Bowl competition. April is, as well, up year-over-year with week-to-week rates remaining consistent. While recent concerns over a potential recession have grown, our survey does not seem to indicate any marked changes. This suggests that the recent underperformance seen in stocks such as MGM (currently at a near-two-and-a-half-year low) and Caesars (currently at a five-year low) may be undeserved - though we are closely monitoring the market for any noticeable consumer shifts."
New Jersey Gaming Revenue
J.P. Morgan's Joseph Greff also provides a rundown on New Jersey's February gaming revenue:
"For the month of February 2025, the New Jersey Gaming Commission reported casino revenues totaling $203.5 million, marking a 3.8% drop from the year prior and a 3% growth from 2019. Sport betting revenues for the month amounted to $72.7 million, revealing a 12% increase from the previous year. Online gaming brought in revenues of $207.8 million, registering a 14% gain from the prior year. The sport betting handle for the month stood at $950 million, experiencing a 9% decrease year-over-year, while the hold rate climbed by 142 basis points to 7.7%.
The total land-based casino gaming revenues for the month were $203.5 million, reflecting a 3.8% decrease from the previous year. Slot Gaming Gross Revenue (GGR) went down by 5%, while table GGR declined by 8.5%.
MGM's Borgata witnessed GGR of $49.9 million, dropping 7% from the preceding year, with tables declining by 15.5% and slot win sliding by 4%. At Caesars properties (Caesars AC, Harrah's, and Tropicana), the total GGR amounted to $48.3 million, registering a 6% decline year-over-year. For the month, aggregate table win dipped by 8.5%, and slot win dropped by 5%."
- The sports betting industry is experiencing growth in New York, with a quarter-to-date Gross Gaming Revenue (GGR) growth of 19% and handle increasing by 22%.
- For the week ending March 9, 2025, the hold rate in New York's sports betting market was 8.9%, compared to 9.0% in the same period the previous year.
- GGR experienced a 12% year-over-year increase for the week ending March 9, 2025, while handle soared by 29%.
- FanDuel, one of the top operators in New York, saw a 10% year-over-year surge in quarter-to-date GGR and an increase of 8% in handle.
- DraftKings experienced a 5% year-over-year increase in quarter-to-date GGR but a significant spike of 28% in handle.
- LAS VEGAS - Concerns over a potential recession haven't seemed to impact room rates along the Las Vegas Strip, according to a survey by Truist Securities.
- In the world of casino and gambling, both MGM and Caesars are currently trading at near-two-and-a-half-year lows and five-year lows, respectively.
- Online sports betting is a growing sector in the finance and business world, with companies like Caesars seeing a 15% increase in quarter-to-date GGR.
- Social media and online platforms have played a significant role in the rise of sports betting and casino games, with lotteries and sports-betting apps becoming increasingly popular.
