Media Update, page-1148

Handle is just the total amount wagered through an operator.

A bad analogy is to think of it a little bit like monitoring the amount of foot traffic through a shopping centre - More is better but not everyone in the shopping centre on the day is going to be spending money, some are window shopping or bargain hunting, some are purchasing and recording sales for the shops, some are returning or exchanging things, it (Handle) is just a measure of potential that has absolutely nothing to do with profitability. Certain events and times of year are going to generate more potential than others eg. Melbourne Cup.

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Also every jurisdiction has different legislation around promos, some states have promo tax deductibility and some will no longer be tax deductible 12months after launch. It is very variable and difficult to forecast - because you have to treat each state like an individual country. In Australia different states have different POC (Point of Consumption) taxes, and thus affect what odds/lines/offers are available based on location.

The way NY records GGR (remember the basis of their reporting is not concerned about how profitable an operator is, it is about how much of the 51% tax will be flowing through to the state coffers to be redistributed back into Govt policies)

From the NY Gaming Reports:
1) Sports wagering gross gaming revenue is reported on a cash basis in New York State. The wagers on future events are taxed as current revenue and payouts for winning wagers are recognized in the period redeemed.





So NY will take 51% which will leave FanDuel with $14,820,801 and Caesars with $31,682,389 after 5 weeks in New York.

However, Caesars was offering an aggressive $3000 deposit match and $300 signup bonus. This changed to $1500 deposit match and an NBA Jersey offer after launch - compared with FanDuel who ran with a $1000 Risk Free bet offer when they launched. So who is more profitable?