Sports betting is finally legal in New York.
New York, The Empire State, became one of the 30, along with the District of Columbia, operating legal sportsbooks, on Jan. 8.
The National Football League (NFL) is the biggest sports betting opportunity in the game and, given its size, New York could eventually become one of the biggest markets for sports bettors.
Nearly 1 in 5 U.S. adults 21 and older said in a December Morning Consult survey that they bet on sports at least once a month, including online betting, representing an 80% increase from January 2021.
To capture the market the newly operable sports gaming platforms like FanDuel, DraftKings (DKNG) - Get DraftKings Inc Class A Report, BetMGM (MGM) - Get MGM Resorts International Report, and Caesars Sportsbook (CZR) - Get Caesars Entertainment Inc Report are offering deals to new signups.
FanDuel's Promotion Is Not Unique to New York
New York has a 51% tax rate on sports betting, so making a profit in the state of nearly 20 million may be tougher than in other locales.
In order to even think about being profitable … [an operator] needs to have 15-20% market share,” David Van Egmond CEO of Bettor Capital said.
Meanwhile, FanDuel, enjoying its top market position has said that it would not offer any special promotions in New York.
"In each scenario, we've recognized that being early, demonstrating the quality of our product and getting some of those early trials from sports bettors really matters," FanDuel CMO Mike Raffensperger told Sportico.
Here are the companies offering new digital sports customers the best deals in New York
- Caesars - up to $1,500 deposit match (min. deposit $50)
- FanDuel - $1,000 risk-free bet
- BetMGM - $1,000 risk-free bet
- PointsBet - $500 in free bets + $1,500 for PointsBetting
- BetRivers - 100% deposit match to $250
- DraftKings - 20% deposit match to $1,000
FanDuel and DraftKings Have Digital Dominance
Recent estimates put the combined market share of FanDuel and DraftKings at 65% with FanDuel, a subsidiary of the U.K.'s Flutter Entertainment PLC, leading the way in revenue.
Morning Consult conducted a survey among 684 regular sports bettors in mid-December, finding that 78% and 73% of respondents were familiar with DraftKings and FanDuel, respectively, compared to 65%, 56% and 56%, respectively, for the next three Apps: Caesars, Fox Bet, and BetMGM.
As for what the bettors actually use, DraftKings led the list with 61% of bettors using the platform while 56% used FanDuel. About 40% used Caesars, 36% used Fox Bet, and 41% used BetMGM.
Globally, soccer and tennis are the top sports for betting. American football is third in the world, and the top sport in the U.S. for gambling.
However, the timing of legalization in New York is working against the online sportsbook as the 2021 NFL season only has only one more round of playoff games before the Super Bowl on February 13.
To capitalize on limited time, sportsbooks are offering matching funds and free bets to entice potential bettors.
BetMGM and Caesars, while being backed by two of the world's premier gambling companies, are the newbies on the block and have to play catchup to market leaders DraftKings and FanDuel.