What We Learned from Arizona Sports Betting’s Record December Revenue Report

What We Learned from Arizona Sports Betting’s Record December Revenue Report

By Christopher Boan

Fact Checked by Michael Peters

It was a strong final month for the sports betting in Arizona marketplace, with a record $499.2 million in wagers.

December’s numbers represented a $32.5 million, or 6.96% increase, month-over-month, from the $466.7 million in wagers placed in November.

Arizona Department of Gaming Director Ted Vogt said December’s record-breaking revenue illustrates the state’s strong sports betting market, giving operators a taste of what’s to come in the new year.

“With a new record for total wagers and payouts this December, I am excited to see the continued strong start to the state’s event wagering & fantasy sports market,” Vogt said in a department press release. “I look forward to seeing the benefits to Arizona as the market further develops.”

Here’s what to know about Arizona’s December sports betting revenue report:

Arizona Sports Betting Revenue & Handle, December vs. November

Total HandleMobile 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 Continues to Lap the Field in Arizona

The No. 1 operator in terms of sports betting revenue continues to be DraftKings Sportsbook Arizona.

The New York-based operator raked in just over $146 million in wagers during December, falling 1.8% from the $148.7 million generated during November. In total, DraftKings Sportsbook Arizona has generated more than $543.8 million in wagers since sports betting in Arizona launched in September.

DraftKings’ December haul still blew away the competition, with No. 2 FanDuel Sportsbook Arizona bringing in $131.1 million in wagers during the month.

Trailing those two were BetMGM Arizona ($103.764 million), and Caesars Sportsbook Arizona ($75.968 million).

The other operators that reported more than $1 million in wagers during December were Penn National Gaming/Barstool Sports ($20,576,436), WynnBET Arizona ($14,277,818), Rush Street Interactive ($4,886,094), and TwinSpires Sportsbook Arizona ($1,735,263).

Bringing up the rear in December were Unibet Arizona ($773,114), SuperBook Arizona ($171,091), and Fubo Sportsbook Arizona ($34,496). Fubo debuted in the market in mid December, at almost the same time SuperBook had its soft launch in the state.

December was the first month three operators brought in more than $100 million in wagers, further cementing the status DraftKings, FanDuel, and BetMGM hold in the state.

Arizona’s Tax Revenue Falls in December

The state’s sports betting tax revenue dived, from $3.17 million in November to $1.723 million in December — thanks in large part to a surge in free bets.

Arizona sportsbooks saw north of $21 million in free bets handed out in December, which was a 16.1% jump from the $18.35 million reported in November. 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.

Because of the free bet deductions, the Grand Canyon state’s sports betting revenues dropped from $31.899 million in November to $17.2 million in December.

The final month of 2021’s handle represented a new record for the state’s fledgling sports betting market (beating out the $486 million in handle in October), giving Arizonans a taste of what’s to come in 2022.

For December, Arizona’s sports betting marketplace stands sixth overall nationally, behind New Jersey ($1.23 billion), Nevada ($1.1 billion), Illinois ($789.6 million), Pennsylvania ($750 million) and Michigan ($514.6 million).

The arrival of New York into the sports betting sphere in January means Arizona will likely fall a spot, but should stay ahead of comparably sized states, such as Indiana ($463 million in December), Colorado ($461 million), and Virginia ($426.6 million), which were the only other states to exceed $400 million in handle during December.

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WRITTEN BY
BetArizona.com
Christopher Boan
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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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.
... Read More