DraftKings Inc. (NASDAQ:DKNG) shares fell 7% and Flutter Entertainment PLC (NYSE:FLUT) stock slipped 2% after New York state wagering figures for the week ended January 25 came in weaker than market participants expected.
State data showed gross gaming revenue, or GGR, down 31% year over year, while handle - the total amount wagered - rose only 2% year over year for the reported week. Those results produced a 4.7% hold rate, a metric that JPMorgan analyst Daniel Politzer described as "a very unfavorable" outcome.
Politzer noted this marked the fourth straight week in New York with either low or negative handle growth, following a December period when handle broadly declined across the United States. The persistence of subpar handle growth has been a source of investor unease, the analyst said, and the latest weekly figures are unlikely to relieve that concern.
At the same time, Politzer pointed to a mixed picture on a year-to-date basis for the first quarter. According to his tracking, first-quarter-to-date GGR is up 13% year over year, while handle is tracking 3% lower year over year. The implied hold for that period is 10.5%, which represents a 150 basis-point increase compared with the prior year.
The timing of the disappointing weekly report is notable because it coincides with the NFL playoff season, a period that generally produces heightened wagering activity ahead of the Super Bowl. Sports-betting operators commonly see elevated volumes around postseason football, and weaker-than-expected results during this stretch can materially affect near-term revenue dynamics.
Context and market reaction
Market participants reacted swiftly to the New York numbers, with DraftKings experiencing a larger move than its peer. The drop in GGR and the unusually low weekly hold rate were singled out by analysts as the primary drivers of the share movements.
What remains clear
The data set paints a mixed short-term picture: stronger GGR on a first-quarter-to-date basis but weaker handle trends and volatile weekly hold metrics. Investors and industry observers will likely watch subsequent weekly and monthly state reports for confirmation of trends in handle and hold.