The sports betting industry in Arizona has achieved a remarkable uptick as September numbers rolled in, showcasing the ever-growing enthusiasm for wagering within the state. The total betting handle for the month soared to heights not seen in six months, impressively eclipsing last year’s figures and August’s tallies.
Breaking down the numbers, the September figure marked a substantial 13.5% rise from the previous year’s $538.0 million and a similar 13.3% increase from just a month before in August 2023, where the handle was $538.9 million. This surge in activity indicates the sixth instance wherein monthly sports betting exceeded the $600.0 million threshold in Arizona.
Among the total, a vast majority of bets, precisely $605.2 million, were placed via online platforms. In comparison, retail sportsbooks accounted for a modest $4.0 million. This distinction highlights a clear preference for online betting among Arizona residents. The payouts to players were also significant, totaling $550.6 million for the month of September.
Adjusting these figures to consider gross event wagering receipts before discounts for free bets, a sum of $59.7 million was recorded. It is noteworthy that this number reflects an 8.2% uptick from the same time the previous year and is almost double the preceding month’s amount of $30.9 million.
Digging deeper into the statistics, online gross receipts represented nearly the entire pool with $59.0 million, whereas retail generated a relatively paltry $473,199. This stark contrast further underscores the dominant role of online betting in the state’s sports wagering landscape.
An aspect that often curtails net revenue is the offering of free bets and promotional credits, which are employed to attract and retain customers. In September, those totalled $27.1 million, with almost the entire sum stemming from online operators. When accounting for these promotions, the adjusted gross event wagering receipts still reached an impressive $32.6 million. This represents a 6.2% increase over September the year prior and a robust 52.3% rise from the month of August.
The lion’s share of the adjusted revenue came from online sources, amounting to $32.0 million, aligning with the trend observed across other metrics. Retail’s slice of this pie was a mere $447,593, which makes it abundantly clear that bettors were overwhelmingly opting for the convenience of online wagering platforms as opposed to visiting physical locations.
Such a booming month also positively affected state coffers, with tax collections totaling $3.2 million for September. Here too, online betting was the primary contributor, as retail generated a tiny fraction amounting to $35,807 in tax revenue. The state imposes a 10% tax rate on online sports betting revenue and 8% on that from retail sportsbooks.
The September statistics for sports betting in Arizona paint a clear image of the industry’s trajectory: online wagering continues to dominate the scene, drawing in significant player amounts and contributing substantially to state taxes. Even in the face of free bets and promotional credits, which traditionally dampen gross receipts, the state’s adjusted revenues have showcased robust growth.
As stakeholders look upon these figures, it’s apparent that Arizona’s foray into sports betting, especially online, has been met with overwhelming approval and participation from bettors. The record-setting figures not only hint at the public’s increasing appetite for this form of entertainment but also underscore the potential for sports betting to become a significant contributor to the state’s economic well-being. With a year-over-year growth and month-to-month progress, it seems that Arizona’s sports betting market will continue to thrive and possibly reach new records in the months to come.
