Arizona Becoming Massive Sports Betting Market
Most states are going to be releasing May sports betting totals soon, but Arizona just now released the numbers from March. As expected, the total sports betting handle for that month set a new record, but it will likely be the last for a while.
The total sports betting handle for Arizona in March was right around $691 million, which was an increase of 40% from the $491.7 million in February. The NCAA Tournament attracted a large number of wagers, but so too did the end of the season run by the Phoenix Suns.
There were very few bets placed at the retail sportsbooks in the state of Arizona as online sports betting accounted for more than 99% the total sports betting handle. This could change in the coming months as more retail sportsbooks emerge at professional sports venues.
Professional teams and leagues located in Arizona were allowed to apply for a sports betting license, and several have already done so. Retail betting is currently available at the Footprint Center and at Chase Field.
There are 18 online sportsbooks currently up and running in Arizona, but a couple more could eventually launch. If Arizona continues to see this much growth in the industry then it could become one of the top markets in the United States.
Both retail and online sports betting launched in September 2021, just as the NFL season was getting underway.
Revenue on the Rise
Not only was the sports betting handle a new record in March, but the sportsbooks have also done well in terms of sports betting revenue. That total in March came in at $38.9 million, and that was an increase of better than 50% more than February.
Even though sportsbooks performed well in March, the hold rate was still less than six percent as bettors performed well. The all-time monthly record for sports betting revenue in Arizona is $51.4 million, set in November 2021.
The state of Arizona saw less than two million dollars in tax revenue for the month as sportsbooks are able to subtract promotional offerings from that total.
“Big Three” Setting the Tone
With 18 online sportsbooks currently in the state of Arizona, you can imagine that the competition in the state is pretty high. While that might be the case, there are three sportsbooks that are clearly well ahead of the pack.
DraftKings led all online sportsbooks in March with a total sports betting handle of $230.2 million. The hold rate for DraftKings was just 3.1%, and that allowed FanDuel Sportsbook to lead the way in terms of revenue.
FanDuel posted a total sports betting revenue of $13.4 million, and came in second place with a total handle of $187.4 million. BetMGM also had a big month in March as it posted a total handle of $133.7 million, and a total revenue of $10.7 million.
