Since legalized online gambling and sports wagers arrived in New York City, the market has exceeded expectations and is now the fastest-growing state for gaming revenue. However, the Big Apple wouldn’t have become such a powerhouse in the industry without the operators who provide top-notch services for the consumer.
The competition between gaming and sportsbook operators will regularly cause a stir. Although Caesars owns the year-to-date revenue lead by 2% and has a 33% market share, Flutter’s FanDuel has come in hot during 2022.
In 2022 we’ve witnessed FanDuel take a steady rise to the top, and their dominance continues heading into April with a handle share of 43% and a revenue share of 48%.
A second place is owned by DraftKings in a podium when evaluating the week-to-week figures as of March 21, 2022, holding 25% of the handle share and 23% revenue. DK’s trajectory has surpassed Caesars in the weekly rankings as they sit in third with a handle share of 16%, a 3% decline from the previous week.
It isn’t all doom and gloom for Caesars, as last week’s 16% revenue share has risen to 21%. Nevertheless, regaining a top position within the market is still unlikely. Elsewhere, operator BetMGM is up 2% in revenue from last week, and PointsBet, WynnBet, and BetRivers each took 1% of the market’s revenue shares.
New York’s gross market revenue from last week was $37 million, as the state continues its dominance with a 12% revenue growth from the week prior with a 13% handle.
Could Caesars Marketing Decisions Be the Cause of Their Losses in NY?
Caesars begin the year by flooding New York customers with sports betting commercials. Eli Manning, Cooper Manning, and Halle Berry all played a supporting role in Caesars’ efforts to provide an eye-catching and memorable marketing plan to capture the Big Apple’s wagering enthusiasts.
However, Caesars Entertainment CEO Tom Reeg curtailed the companies sports betting advertisements in fears of a spending spree that could get out of control. “You will see us dramatically curtail our traditional media spend effectively immediately,” Reeg told investors on February 23, 2022.
Caesars held onto 21% of the U.S. sports betting market, and in New York, they’d already received $800 million in online sports bets for a gross gaming revenue of $70.5 million.
Despite losing traction in New York to the likes of FanDuel, a previous ambition to spend $1 billion on advertising for sports betting and iGaming did seem excessive for an industry leader who owned so many pieces of the pie in other states.
“We have accomplished what we set out to do. We set out to become a significant player, and it’s happened significantly quicker than we thought,” Reeg discussed. “I think most of you know me as someone who’s not one to spend any money needlessly.”
New York Isn’t a Problem for Caesars
Reeg and Caesars’ decision to cut advertisement spending could be why FanDuel has gained traction, but the overall performance of the casinos and sportsbooks throughout America is staggering.
Caesars led the New York market in January. They produced an online gaming gross revenue of $22 million with a handle that exceeded $250 million within the state’s initial ten days of business. And sure, FanDuel’s gain in market share and the overall handle isn’t what Caesars desired, but the sportsbook operator is still the No.1 player in gross gaming revenue throughout the nation.