What We Learned from Arizona Sports Betting’s First Revenue Reports

What We Learned from Arizona Sports Betting’s First Revenue Reports
By Christopher Boan

The first Arizona sports betting revenue reports are out, and it’s clear the marketplace is ready to roll.

The reports, which were released by the Arizona Department of Gaming on Dec. 31, showed the state brought in $291.2 million in wagers during September, then followed it up with $486.097 million in October.

Both figures stack up favorably with some of the industry’s mainstay states, with September’s figure becoming the best state debut since legal sports betting expanded in the U.S. in 2018.



Arizona Sports Betting, October vs. September

Total HandleMobile 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%

Note: Arizona sports betting launched Sept. 9; October was the first full month.


Here’s what stood out from the opening slate of sports betting revenue reports in the Grand Canyon state:

Arizona Ready to Contend in a Competitive Marketplace

The state’s sports betting handle during September and October paint a rosy picture for Arizona betting apps operators and customers alike.

Arizona’s October haul, for the state's first full month (operations launched Sept. 9) ranked seventh nationally, behind Colorado ($491.5M), Michigan ($497.6M), Pennsylvania ($776.3M), Illinois ($840.4M), Nevada ($1.101B), and New Jersey ($1.303B).

All of those states have markets that are close or have fully reached 100% operations. Arizona, meanwhile, has seen only 13 of the 18 online sports betting operators approved for licenses by the ADG launch — meaning there’s room for the market to grow, which should allow the handle to balloon upwards in the new year.

Bally’s Arizona (partnered with the Phoenix Mercury), the Golden Nugget (Hualapai Tribe), Digital Gaming (San Juan Paiute Tribe), the Navajo Nation (partner TBD), and the Arizona Coyotes (partner TBD) are all expected to open in 2022 ahead of the 180-day deadline imposed on licensees by the state.

Fubo Sportsbook and SuperBook Sports launched operations in December — meaning their revenues haven’t been included in any reports so far. Their addition will help grow the overall pool of sports betting revenue for the state.


Early Promotions Impacting State Taxes

Another standout element of Arizona’s first revenue reports was the taxes collected by the ADG in September and October.

Operators in the state offered more than $31 million in free bets and promotional credits in September as the market opened. As a result, Arizona took in $31,393 in taxes for September, all from the retail betting locations at Chase Field and the Footprint Center.

Operators offered more than $25 million in free bets and promotional credits in October, while the state took in $1.02 million in taxes.

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 grow in the new year, as operators gobble up market share and turn away from free bets and promotional credits.


DraftKings the Biggest Winner in Arizona So Far

Another overarching theme from the ADG’s initial revenue report was the strong performance turned in by DraftKings Sportsbook Arizona.

The operator nearly doubled its next closest competitor in wagers collected, taking in $97,726,411 in bets during September. The next closest operator was BetMGM Arizona at $58,918,282.

Other noteworthy wager numbers in September were FanDuel Sportsbook Arizona ($57,927,039 in wagers), Caesars Sportsbook Arizona ($42,172,453), and WynnBET Arizona ($17,428,339).

Rounding out the list were Penn National Interactive/Barstool Sports ($13,045,514 in wagers), TwinSpires Arizona ($489,556), and Unibet Arizona ($420,983).

October’s numbers were just as rosy for the folks at DraftKings Sportsbook Arizona, which led the way in wagers — at $151,449,866.

Other operators of note during the Grand Canyon State’s first full month of operation were FanDuel Sportsbook Arizona ($115,930,787 in wagers), BetMGM Arizona ($92,083,455), Caesars Sportsbook Arizona ($69,184,843), Penn National Interactive/Barstool Sports ($26,302,770) and WynnBET Arizona ($20,736,212.68).

TwinSpires Sportsbook Arizona ($1,643,242 in wagers), Unibet Arizona ($1,242,323), and BetRivers Arizona ($681,570) rounded out the state’s report for October.

As far as payouts are concerned, September saw $258.9 million in winnings, while October’s report said $448.59 million in winnings occurred in Arizona.

quote

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.

Cited by leading media organizations, such as:

Scroll to top