Key Takeaways from Arizona Sports Betting’s Initial Revenue Data
The first revenue reports for Arizona sports betting have been published, suggesting that the market is set up for prosperity.
According to reports released by the Arizona Department of Gaming on December 31, the state saw a significant increase in wagers from $291.2 million in September to $486.097 million in October.
Both figures are comparable to some of the industry’s well-established states, and September’s numbers represent the strongest state debut since the legalization of sports betting in the U.S. in 2018.
Comparing Arizona Sports Betting in October to September
| Total Handle | Mobile Handle | Revenue | |
|---|---|---|---|
| October | $486.097M | $479.255M | $10.356M |
| September | $291.213M | $288.129M | $0.392M |
| Change | Up 66.9% | Up 66.3% | Up 2539% |
Arizona sports betting was officially launched on September 9th, and October was the first full month of operation.
These are the key points from the first set of sports betting revenue reports in Arizona.
Arizona is prepared to compete in a challenging marketplace.
The increase in sports betting activity in Arizona in September and October has been a promising development for both betting app operators and their customers.
Arizona ranked seventh in the nation for revenue generated in October, its first full month of operations since launching on September 9th, trailing behind Colorado, Michigan, Pennsylvania, Illinois, Nevada, and New Jersey.
Arizona has lagged behind other states in terms of online sports betting operators, with only 13 out of 18 approved by the ADG to launch. However, this presents an opportunity for growth in the market, which is expected to lead to an increase in the handle in the upcoming year.
Bally’s Arizona, in collaboration with the Phoenix Mercury, the Golden Nugget operated by the Hualapai Tribe, Digital Gaming in partnership with the San Juan Paiute Tribe, the Navajo Nation (partner TBD), and the Arizona Coyotes (partner TBD) are all expected to debut in 2022, meeting the state’s 180-day licensing deadline.
Fubo Sportsbook and SuperBook Sports recently joined the market in December, so their revenues have not yet been included in any reports. It is anticipated that their presence will boost the overall sports betting revenue for the state.
The impact of early promotions on state taxes.
An important highlight in Arizona’s early revenue reports was the tax revenue garnered by the ADG in September and October.
During September, operators at Arizona’s casinos gave out more than $31 million in free bets and promotional credits, leading to the state collecting $31,393 in taxes from the retail betting sites at Chase Field and the Footprint Center.
In October, operators gave out more than $25 million in free bets and promotional credits, leading to the state collecting $1.02 million in taxes.
In the first five years of sports betting in Arizona, operators can receive a tax break on the free bets and promotional credits they provide. This tax break can be as much as 20% of their total gross wagers during the first two years.
With operators increasingly dominating the market and phasing out free bets and promotional credits, the state can anticipate a rise in tax revenue in the upcoming year.
DraftKings emerges as the top performer in Arizona thus far.
DraftKings Sportsbook Arizona’s impressive performance was also a main theme emphasized in the ADG’s first revenue report.
The operator gathered nearly double the number of bets compared to its closest competitor, raking in $97,726,411 in wagers in September. Following closely behind was BetMGM Arizona, with $58,918,282 in collections.
In September, notable wager amounts were placed at various sportsbooks in Arizona, with $57,927,039 at FanDuel Sportsbook, $42,172,453 at Caesars Sportsbook, and $17,428,339 at WynnBET.
The list was rounded out by Penn National Interactive/Barstool Sports, who had $13,045,514 in wagers, TwinSpires Arizona with $489,556, and Unibet Arizona with $420,983.
DraftKings Sportsbook Arizona dominated in wagers for October, generating a total of $151,449,866.
During the first month of operation in Arizona, FanDuel Sportsbook led with $115,930,787 in wagers, followed by BetMGM with $92,083,455, Caesars Sportsbook with $69,184,843, Penn National Interactive/Barstool Sports with $26,302,770, and WynnBET with $20,736,212.68 as other notable operators.
TwinSpires Sportsbook Arizona led the state in wagers for October with $1,643,242, followed by Unibet Arizona with $1,242,323 and BetRivers Arizona with $681,570, completing the month’s report.
In payouts, Arizona saw $258.9 million in winnings in September and $448.59 million in October.
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Author
For more than seven years, Peterson Christopher has been reporting on sports and sports betting in Arizona. He has worked for ArizonaSports.com, the Tucson Weekly, and the Green Valley News, and is currently the primary writer for yengols.com.
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