Sports Betting News: DraftKings Topped FanDuel Last Week in NY Revenue

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Written By Giovanni Shorter | Last Updated
Legal Sports Betting News

These are the recent sports betting news events taking place in the industry. Maryland, Tennessee, and New York have released their sports betting revenue and handle reports for July 2023. Maryland sportsbooks continue their strong showing. This is the first month Tennessee sportsbooks are taxed on the betting handle. The New York sports betting market has a new No. 1 operator, at least for now. More details on the battle between DraftKings and FanDuel below.

Let’s take a look at all the recent revenue news in the sports betting industry.

Maryland Sees 10% Or Higher Hold Rate For 13 Consecutive Months

Maryland sportsbooks saw $247,412,348 in wagers for July 2023 according to the Maryland Lottery and Gaming reports. Operators saw $22,084,219 in revenue off of an 11.4% hold rate. This marks 13 straight months of double-digit hold in Maryland.

The Old Line State collects 15% in taxes, seeing $3,312,633 in state contributions for July. Maryland remains dominated by mobile betting. 96% of the total market came from mobile sportsbooks ($237,525,908). Mobile apps also contributed $3,081,264 of the state’s total revenue compared to $231,369 from retail sportsbooks.

Maryland Revenue Report Breakdown

Handle (Amount players wagered, including free promotional wagers)

  • Retail: $9,886,440
  • Mobile: $237,525,908 (includes $5,629,882 in free promotional wagers)
  • Combined: $247,412,348

Prizes (Winnings paid to players)

  • Retail: $8,314,217
  • Mobile: $210,983,610
  • Combined: $219,297,827

Hold (Handle less prizes paid)

  • Retail: $1,572,223 (15.9%)
  • Mobile: $26,542,297 (11.2%)
  • Combined: $28,114,521 (11.4%)

Taxable Win (Amount remaining after deducting prizes, promotional wagers and other amounts)

  • Retail: $1,542,462
  • Mobile: $20,541,757
  • Combined: $22,084,219

Sports Wagering Tax (15% of the Taxable Win)

  • Retail: $231,369
  • Mobile: $3,081,264
  • Combined: $3,312,633

Since the inception of Maryland’s sports wagering program in December 2021:

  • Cumulative contribution to the Blueprint for Maryland’s Future Fund: $31,454,337
  • Cumulative expired prizes contributed to the Problem Gambling Fund: $2,383,341

Tennessee Handle Tax Shows Little Difference In State Revenue

July marks the first month that Tennessee sportsbooks were taxed on their betting handle as opposed to their revenue. Tennessee lawmakers now tax 2% of all wagers (previously taxed 20% on revenue). While the initial idea was that the state would take in far more in taxes as a result, the reality shows little difference.

Taking a look a June’s report to begin, the state saw $4,635,761 in tax revenue off of 20% of the $23,143,350 in adjusted gross income. June saw $230,337,515 in total wagers. For July, with the 2% handle tax, Tennessee collected $3,951,411 off of the $214,114,055 gross handle.

Tennessee no longer reveals revenue numbers. Comparing how much they would have made with the previous tax rule is not possible at this time. However, simply looking at last month’s report shows that the difference is not massive.

A real test of how the new taxation will impact the market will be during the NFL season. It is still interesting to see that the switch to a taxing handle does not automatically result in more funds to the state consistently.

DraftKings Overtakes FanDuel In New York

For the first time since the early months of launch, FanDuel is not the number one sportsbook in New York. DraftKings now holds that position. The NY State Gaming Commission report shows that DraftKings saw a record-high online GGR of $25.1 million in the week ending on August 6. This was more than double FanDuel’s $12.2 million in that span.

For the month of July, DraftKings was on FanDuel’s heels. The difference in their betting handle, gross gaming revenue, and tax contributions was negligible. DraftKings starting the week in August as the dominant sportsbook is not that far-fetched when looking at how close things were in July.

DraftKings Vs. FanDuel NY July 2023 Report

It will be interesting to see if DK can sustain this and become the dominant sportsbook for a full month. With NFL season approaching, however, it is safe to assume FanDuel will be working to reclaim its top spot.

Online SportsbookHandleGross Gaming RevenueTax