What insights did we gain from the record-breaking December revenue report for Arizona sports betting?
The sports betting market in Arizona finished strong last month, setting a new record with $499.2 million in wagers placed.
In December, there was a $32.5 million increase in wagers placed, representing a 6.96% rise from November’s total of $466.7 million.
Arizona Department of Gaming Director Ted Vogt believes that the unprecedented revenue generated in December highlights the strength of the state’s sports betting market and gives operators a glimpse of the potential success that lies ahead in the coming year.
Vogt, in a department press release, expressed enthusiasm about the new record for total wagers and payouts in December. He is confident in the ongoing expansion of Arizona’s event wagering and fantasy sports market and anticipates the positive impacts that will result from the market’s continued growth in the state.
Below is a summary of the sports betting revenue report for Arizona in December.
Comparison of Arizona Sports Betting Revenue and Handle between December and November
| Total Handle | Mobile Handle | Revenue | |
|---|---|---|---|
| December | $499.214M | $494.488M | $17.282M |
| November | $466.726M | $459.299M | $31.899M |
| Change | Up 7.0% | Up 7.7% | Down 45.8% |
DraftKings remains the clear leader in Arizona, outpacing the competition.
DraftKings Sportsbook Arizona continues to lead in sports betting revenue.
In December, the New York-based operator collected just over $146 million in bets, marking a 1.8% decrease from the $148.7 million in bets recorded in November. Overall, DraftKings Sportsbook Arizona has amassed more than $543.8 million in bets since sports betting was introduced in Arizona in September.
Even though FanDuel Sportsbook Arizona saw an impressive $131.1 million in wagers in December, DraftKings still emerged as the top competitor with a larger total.
BetMGM Arizona followed closely behind with $103.764 million, while Caesars Sportsbook Arizona trailed with $75.968 million.
In December, Penn National Gaming/Barstool Sports, WynnBET Arizona, Rush Street Interactive, and TwinSpires Sportsbook Arizona all reported wager amounts exceeding $1 million, with totals of $20,576,436, $14,277,818, $4,886,094, and $1,735,263 respectively.
In December, Unibet Arizona, SuperBook Arizona, and Fubo Sportsbook Arizona were the lowest revenue earners, bringing in $773,114, $171,091, and $34,496 respectively. Fubo joined the market in mid-December, coinciding with SuperBook’s soft launch in the state.
In December, DraftKings, FanDuel, and BetMGM cemented their position as top operators in the state by becoming the first to surpass $100 million in wagers in a single month.
Tax revenue in Arizona declined in December.
The state experienced a notable decline in sports betting tax revenue, falling from $3.17 million in November to $1.723 million in December, primarily as a result of an uptick in free bets.
During the month of December, Arizona betting apps distributed more than $21 million in free bets, marking a 16.1% increase from the previous month’s total of $18.35 million. Operators in Arizona are granted a tax exemption on free bets and promotional credits for the initial five years of sports betting, enabling a potential 20% reduction in taxes on gross wagers within the first two years.
Arizona experienced a drop in sports betting revenue from $31.899 million in November to $17.2 million in December, attributed to deductions made for free bets.
In December 2021, Arizona’s burgeoning sports betting market achieved a new milestone by surpassing the $486 million handle set in October. This unprecedented month provided a preview of the potential growth that lies ahead in 2022 for Arizonans.
Arizona is ranked sixth in the nation for sports betting in December, following New Jersey, Nevada, Illinois, Pennsylvania, and Michigan.
As New York joins the sports betting market in January, Arizona is anticipated to decline in ranking but still outpace similarly sized states such as Indiana ($463 million), Colorado ($461 million), and Virginia ($426.6 million). These were the only other states to exceed $400 million in handle in December.
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Author
Peterson Christopher has over seven years of experience covering sports and sports betting in Arizona, with previous roles at ArizonaSports.com, the Tucson Weekly, and the Green Valley News. He now holds the position of lead writer at yengols.com.
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