Arizona’s Sports Betting Handle and Revenue Results for November
Arizona’s sports betting handle slightly declined in the third month of operation. The sports betting market had a fast start with a combined handle of $777 million in September and October.
Arizona’s Sports Handle Declines But Revenue Increases
Sportsbooks that operate in the Copper State drew in $291.2 million in wagers in September and $486.1 million for October. According to the Arizona Department of Gaming, the sportsbook operators brought in $466.7 million for November.
October’s sports betting handles were higher for most states in the industry as an extra weekend of NFL and college football was part of the schedule.
ADG Director Ted Vogt stated, “Arizona has exceeded expectations and is already a top ten market nationally. Revenue from these new games is strong and will only get stronger as the market develops.”
Sportsbook operators in the state have spent a ton of money on marketing promotions to maintain a strong market share in the lucrative market. Operators that do business in the state spent a combined total of $18.4 million regarding free bets and other types of promotional credits.
Sportsbooks pay an eight percent tax on retail sports wagers and 10 percent on mobile bets. These providers also pay 0.25 percent of total wages in a federal excise tax. Sportsbooks generated $51.4 million in gross revenue for November, which was much higher than the previous two months.
After all the necessary deductions, the adjusted revenue total was slated at $31.9 million, which was suitable for an 11 percent hold.
Sportsbooks generated just $31.2 million in revenue for September and $36.3 million for October. Promotional spending was heavy in the first two months of operation in Arizona as it cost the providers $57 million.
The state collected $3.2 million in taxes for November, which is a sign of improvement in that aspect. The state was only able to collect approximately $1 million in total for the first two months of operation.
Which Sportsbooks Had the Highest Market Share in the State
In just a short period of three months since launch, bettors across Arizona have wagered over $1.2 billion in that period. The convenience of mobile sports betting was prevalent in the state as online sports betting accounted for 98.4 percent of the overall handle or $459.3 million.
DraftKings Sportsbook was the only operator that had a market share of over 30 percent. DraftKings handled $148.7 million in bets which made up 32.6 percent. FanDuel Sportsbook was second as the operator accounted for $113.3 million in mobile wagers, or 24.7 percent. Fanduel also brought in $4.7 million due to its retail location in the Footprint Center, where the Phoenix Suns are currently playing.
DraftKings was the only sportsbook in Arizona to surpass a market share of 30 percent.BetMGM was third by taking in $93.2 million, which was good for 20.3 percent. Caesars Sportsbook rounded the top four with $63.5 million in mobile wagers and 2.8 million from its retail location at the Chase Field. The combined total made up 13.9 percent of the market share.
Barstool and WynnBet had the same handle of 17.8 million or 3.9 percent. BetRivers, TwinSpires, and Unibet all had a market share that was less than one percent. Arizona had the seventh-largest handle in the industry for November.
