The state of Arizona has once again surpassed its own record in sports betting revenue, achieving a staggering 51.6% increase compared to the same month last year with a total of $71.4 million in January. This impressive figure not only outpaces the $45.7 million recorded in January of the previous year, but it also marginally eclipses the preceding record of $66.1 million set in December by a solid 4.8%.
In a testament to the burgeoning popularity of online gambling, a substantial $69.0 million of the total revenue was generated through internet platforms. Meanwhile, a relatively modest $230,662 stemmed from retail sportsbooks, with limited event wagering (LEW) operators contributing another $146,204 to the pot.
The overall handle, or the amount wagered by players, also experienced a significant upturn, totaling $706.4 million for January. This not only marks a 19.5% increase year-on-year but also a 1.2% rise from the $698.0 million handle in December 2023. Breaking down the handle, online betting dominated with $698.0 million, while retail betting accounted for $6.3 million and LEW operators saw $2.01 million in wagers.
In terms of promotions, operators doled out $23.2 million in free bets and credits, nearly all through online avenues. These incentives, when deducted, leave an adjusted gross revenue of $46.2 million for the month, highlighting a substantial 59.3% annual growth. Despite this impressive increment, it falls 4.4% short of December’s adjusted figure of $48.3 million.
Tax revenues from this lucrative industry amounted to a noteworthy $4.6 million for the month, with the lion’s share stemming from mobile betting taxed at 10.0%. Conversely, retail and LEW operators, taxed at a rate of 8.0%, contributed just $18,164 and $11,696, respectively.
Upon delving into individual operator performances, FanDuel has remained the frontrunner in Arizona’s online betting scene, boasting a gross revenue of $31.2 million from an extensive $228.2 million in wagers. Second place was clinched by DraftKings in partnership with Crown Gaming, which hauled in $22.5 million—even with a higher handle of $258.1 million. BetMGM followed in the third spot, securing $9.7 million in revenue from $84.7 million in bets.
The ranks were slightly shuffled in the retail market, with DraftKings and Crown Gaming topping the list thanks to a gross revenue of $144,519 from a $3.3 million handle. FanDuel took the second spot with $62,810 from $1.8 million in wagers, while BetMGM came in third, generating $23,332 off a handle of $979,342.
As for the LEW segment, Turf Paradise led the pack, recording revenues of $48,958 from $1.1 million in wagers. This sector, although smaller in volume, complements the wider sports betting economy.
January’s data highlight a sports betting industry in Arizona that’s not only thriving but showing robust growth potential. With online betting as the driving force, Arizona’s market has established itself as a significant player in the sports gambling landscape. As customers increasingly flock to digital platforms for their betting needs, the coming months will be crucial in determining if the state can sustain this meteoric growth streak and further solidify its position in the industry.
