Gambling Updates: New York's Sports Betting Expansion, Rate Adjustments on Las Vegas Strip Accommodation, and New Jersey's Gaming Revenue Increase
Rewritten Article:
Sports betting in the Empire State has been thriving, with leading analysts, such as Joseph Greff from J. P. Morgan, offering insightful analysis into the bustling market.
New York's Sports Betting Stride
According to Greff's recent observations, the quarter-to-date gross revenue (GGR) stands at an impressive 19% year-over-year increase, while the handle experiences a 22% surge [1]. This indicates an 8.9% hold rate compared to a 9.0% rate in the same period of 2024. For the week ending March 9, 2025, GGR rose by 12%, with the handle soaring by 29%, yielding a 7.4% hold rate [1].
Operator Highlights
- FanDuel Triumphs: Quarter-to-date, FanDuel's gross revenue has seen a 10% year-over-year improvement, while the handle rises by 8% [1]. This translates to an enhanced 10.9% hold rate, which has risen by 19 basis points year-over-year [1]. The operator holds a 46% share of the quarter-to-date GGR and a 37% share of the handle [1]. Weekly performance reveals a slight dip of 5% in GGR and a 1% drop in handle, resulting in an 8.5% hold rate [1].
- DraftKings Battles Tough Competition: Despite a 28% surge in handle, DraftKings' quarter-to-date gross revenue shows a 5% increase compared to the same period in 2024 [1]. This results in a 7.8% hold rate, which has dropped by 169 basis points year-over-year [1]. DraftKings claims a 31% share of quarter-to-date GGR and a 36% share of the handle [1]. Nevertheless, the operator manages to outshine its weekly competitors, boasting a 24% GGR increase and a 63% surge in handle, despite an 8.8% hold rate [1].
- BetMGM Makes a Move: Quarter-to-date, BetMGM's improved 121% year-over-year gross revenue outpaces its 29% increase in handle [1]. This implies a 7.9% hold rate, which has increased by 329 basis points compared to 2024 [1]. BetMGM maintains a steady 6% share of the quarter-to-date GGR and a 7% share of the handle [1]. Remarkably, the operator managed to stay afloat during the week ending March 9, 2025, with a minor 2% increase in both GGR and handle, thereby preserving a 7.3% hold rate [1].
- Caesars Copes with Challenges: Caesars' quarter-to-date gross revenue has risen by 15% compared to last year [1]. However, the handle plunges by 18%, resulting in an increased 8% hold rate, which escalates by 228 basis points year-over-year [1]. The operator retains a 6% share of the quarter-to-date GGR and a 7% share of the handle [1]. Weekly statistics show a disappointing 33% drop in GGR and a 22% decline in the handle, yielding a 6.5% hold rate [1].
- ESPN BET Joins the League: Quarter-to-date, ESPN BET accounts for a modest 2% share of GGR and the same percentage of the handle [1].
Sources:[1] J. P. Morgan Thursday, March 14, 2025
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Eye on the Las Vegas Strip and Beyond
The Las Vegas Strip has been under Barry Jonas' keen scrutiny from Truist Securities. Jonas revealed that the first quarter of the year has displayed a stable performance, even surpassing the tough Super Bowl comp [1]. April also demonstrated growth, with week-to-week rates holding steady [1].
Despite escalating recession fears, Jonas' survey suggests that the recent underperformance of MGM and Caesars stocks may be unwarranted [1]. Monitoring consumer shifts remains essential, as a fundamental change may impact these stocks further.
Sources:[1] Truist Securities, March 13, 2025
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Breaking Down the New Jersey Gaming Revenue
J. P. Morgan's Greff also investigated February's gaming revenue in New Jersey. In February 2025, the state reported a casino revenue of $203.5 million, representing a 3.8% decrease year-over-year [1]. However, the revenue increased by 3% compared to 2019. Sports betting revenues for the month totaled $72.7 million, registering a 12% year-over-year increase [1]. igaming generated revenues of $207.8 million, climbing by 14% year-over-year [1]. The sports betting handle dropped by 9% year-over-year, with a hold of 7.7%, marking a significant 142 basis point surge year-over-year [1].
Sources:[1] J. P. Morgan, March 2025
- Despite the surge in sports betting across New York, the online betting industry in Las Vegas is also under the spotlight, with analysts like Barry Jonas from Truist Securities closely monitoring its performance.
- Operators in the Empire State's sports betting market, such as FanDuel, DraftKings, BetMGM, Caesars, and ESPN BET, are all vying for dominance in the thriving market.
- In the first quarter of 2025, the Las Vegas Strip demonstrated a stable performance, even surpassing the tough Super Bowl competition, as reported by Barry Jonas.
- Caesars, one of the major operators in the New York sports betting market, has seen a 15% increase in quarter-to-date gross revenue, though the handle has plunged by 18%.
- The financial reports indicate that FanDuel has improved its quarter-to-date gross revenue by 10%, while the handle has risen by 8%, resulting in an enhanced hold rate.
- In the casino-and-gambling industry, the Sports-betting and igaming sectors are not only thriving in New York but also in states like New Jersey, where gaming revenues showed a 3% increase compared to 2019.
