Will February Mark a Historic Moment for Arizona Sportsbooks with Super Bowl LVII?
Less than a week from now, the fourth Super Bowl to be held in Arizona will make history as the first time the game is played in a state where sports betting is permitted.
On February 12th, when Kansas City and Philadelphia meet at Glendale’s State Farm Stadium, all eyes will be on the Valley, highlighting its beauty. Arizona sports betting operators and state officials stand to gain from the increase in bets placed on Super Bowl LVII.
Despite BetMGM Sportsbook Arizona listing the Eagles as a slight betting favorite with odds of -1.5 and -125, the true victors will be those who utilize the wide-ranging wagering options available in Arizona.
Daniel McIntosh, an Associate Teaching Professor at Arizona State University’s W.P. Carey School of Business, suggests that Super Bowl LVII could greatly boost the amount of bets placed on Arizona sports betting apps in the near future.
“This city is set to make history by hosting the first Super Bowl with legalized mobile and in-person gaming,” McIntosh told yengols.com. “Trials will be conducted for different types of bets, incentives will be offered to casino-goers, advertising strategies will be implemented, and operator activations will gauge the public’s response to the heightened focus on gambling options.”
An invaluable asset for those attending the Super Bowl.
Ted Vogt, Director of the Arizona Department of Gaming, anticipates a notable surge in betting during February due to the simultaneous occurrence of Super Bowl LVII and the Waste Management Phoenix Open.
Vogt conveyed excitement in an email to yengols.com regarding how the upcoming Super Bowl LVII and Phoenix Waste Management Open could impact the state’s sports betting industry in the near future.
There is uncertainty surrounding whether Arizona will exceed its February 2022 handle of $491.665 million, but McIntosh is optimistic about the possibility of an increase.
McIntosh predicts that visitors from out of town will add around $3.8 million to the overall sports betting handle for Super Bowl Sunday, a figure derived from the American Gaming Association’s forecast of $31.4 million being wagered on the game.
McIntosh pointed out that with the added boost from the Super Bowl, along with the already notable year-over-year increases in September (+84.7% from 2021), October (+27.2% from 2021), and November (+32.1% from 2021), there is a possibility of a significant rise in betting handle for February in Arizona.
McIntosh emphasized the popularity of the Super Bowl, pointing out that it attracts a significant amount of out-of-state visitors. Our Seidman Institute projects that approximately 100,000 fans will be in attendance at the event this year. The main focus of this year’s event will be on effectively segmenting, targeting, and marketing to both out-of-state visitors and local fans.
Arizona residents and visitors can anticipate a variety of betting promotions for Super Bowl 57, potentially leading to a surge in wagering activity on the game.
Where might February’s handle end up?
In October, Arizona saw a year-over-year increase of 27.2%, along with an added $3.8 million in handle from visitors outside the area. This surge suggests that the sports betting handle in Arizona could potentially reach $629.198 million in February.
This amount would rank as the second highest among the 14 months of data released by the ADG thus far, falling behind only March 2022 ($690.979 million) and surpassing October 2022 ($618.57 million).
McIntosh explained to yengols.com that “super events” such as the Super Bowl have the potential to greatly boost a state’s monthly handle by attracting additional spending from visitors coming from out of town.
According to McIntosh, about $8.5 billion was bet on games in January 2022 based on state tax data. This included 43 games, with 31 regular season NFL games and 12 playoff games, averaging around $200 million wagered per game. In February, almost $7 billion was bet on just one NFL game, the Super Bowl.
Although not a perfect comparison because of other sporting events, there is a notable 35-fold increase in handle for these ‘Super Events.’ While the total handle may decrease slightly when looked at as a whole, the significance of the Super Bowl is much more evident when examined on a per-game basis.
McIntosh is optimistic that the economic impact of Super Bowl LVII in Arizona will be significant, with increased visitors and betting revenue expected to boost the state’s financial prosperity.
He stated that Arizona’s state sportsbooks, which earn revenue from promotions, have either met or surpassed revenue expectations since the market was released in September 2021.
McIntosh explained that the revenue that was once going to offshore bookmakers or other untaxed organizations is now being monetized by teams, leagues, and operators. The next objective is to utilize these interactions to enhance team loyalty.
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Author
Peterson Christopher has spent over seven years reporting on sports and sports betting in Arizona for publications like 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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