What We Learned From Arizona Betting Apps November Revenue Report

What We Learned From Arizona Betting Apps November Revenue Report
By Christopher Boan

The third month for Arizona betting apps generated $466.7 million in wagers, falling more than $20 million short of October’s figure.

Tuesday’s monthly report from the Arizona Department of Gaming reported a 3.9% decrease in handle for the second full month of sports betting in the state.

November’s figures topped the $291.2 million in wagers for September and helped the Grand Canyon state clear $1 billion in handle three months after Arizona sports betting launched.

For ADG Director Ted Vogt, Tuesday’s financial report is indicative of the fast start sports betting has gotten in the 48th state.

“Arizona has exceeded expectations and is already a top 10 market nationally,” Vogt said in a department press release. “Revenue from these new games is strong and will only get stronger as the market develops.”

Here’s what to know about Arizona’s November sports betting revenue report.


DraftKings Continues its Dominance

Perhaps the main takeaway from Tuesday’s revenue report is the continued dominance shown by DraftKings Sportsbook Arizona.

The Boston-based operator once again led the way in terms of wagers, raking in $148.7 million during November.

DraftKings’ wager total was more than $35 million ahead of No. 2, FanDuel Sportsbook Arizona, which had $113.3 million in receipts.

Trailing the two daily fantasy specialists was BetMGM Arizona, which had $93.2 million in wagers during the month, followed by Caesars Sportsbook Arizona at $63.5 million.

Behind that quartet were Barstool Sportsbook ($17.8M) and WynnBET Arizona ($17.75M) to round out the operators that had more than $10 million in wagers during the month.

The final two operators, in terms of wagers, were TwinSpires Arizona ($1.5 million) and Unibet Arizona ($881,937).


Where Arizona’s Market Stands Nationally

Arizona’s sports betting handle of $466.7 million ranked seventh nationally, behind New Jersey ($1.2B), Nevada ($1.086B), Illinois ($779.9M), Pennsylvania ($761.57M), Michigan ($500.5M), and Colorado ($475.4M), but ahead of Indiana ($463.68M), Virginia ($402.6M), Tennessee ($365.7M), and Iowa ($287.24M).



Arizona Sports Betting Revenue & Handle, November vs. October

Total HandleMobile Handle Revenue
November$466.726M$459.299M$31.899M
October$486.097M$479.255M$10.356M
Change Down 4.0% Down 4.2% Up 210.6%


Sports Betting Taxes Rebound in November

Another element of the sports betting rollout that’s gotten a lot of press is the lack of taxes brought in during the first two months of wagering.

The ADG reported a little more than $1 million in sports betting taxes combined between September and October, thanks to operators being able to write off more than $31 million in free bets.

November’s report, on the other hand, showed $3.177 million in taxes, thanks to a pared-down $18.35 million in free bets during the month.

Operators get a tax break on the free bets and promotional credits they offer during the first five years of sports betting in Arizona. That tax break is up to 20% of their gross wagers for the first two years.

The state’s share of taxes should continue to grow in the new year, as operators gobble up market share and turn away from free bets and promotional credits.

For now, the sports betting market in the Grand Canyon state stacks up well, nationally, with the fledgling market ranking in the top-10 nationally for a second consecutive month.

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Contributors

Christopher Boan is the lead writer at BetArizona.com after covering sports and sports betting in Arizona for more than seven years, including stops at ArizonaSports.com, the Tucson Weekly and the Green Valley News.

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