Arizona’s betting market sees mixed results

Anchal Verma October 21, 2024

Arizona‘s sports betting market experienced a mixed performance in July, with year-on-year growth in both handle and revenue, but a dip compared to June. Players wagered a total of $410.1 million (£313.7 million/€376.6 million), showing an increase from $323.2 million in July 2022, but a decline from $454.1 million in June 2024.

Strong year-on-year growth

July’s handle of $410.1 million reflects solid growth when compared to last year, with online betting accounting for $404.8 million and retail sportsbooks contributing $5.4 million.
However, this figure marked a month-on-month decline from June, when the total wager stood at $454.1 million. The Arizona Department of Gaming (ADoG) reported $41.5 million in adjusted gross revenue before deducting free bets, and $29.0 million after accounting for $12.5 million in promotional wagers.
While July’s adjusted revenue grew by 8.2 percent compared to the same month in 2022, it fell by the same percentage from June 2024. Online betting generated $28.7 million in revenue, while retail betting contributed $283,928.

Tax contributions and state-wide hold

Arizona’s sports betting operators paid $2.9 million in taxes to the state during July. Digital revenue, taxed at 10 percent, accounted for the bulk of these payments, while retail revenue, taxed at eight percent, made up the remainder. The overall hold for the state was 7.07 percent, indicating the portion of wagers retained by operators after payouts.

DraftKings retained its top spot in Arizona’s sports betting market in July, generating $13.4 million in revenue from a total handle of $147.9 million, with a 9.06 percent hold. FanDuel followed closely behind, reporting $9.5 million in revenue from $127.6 million in bets, with a 7.45 percent hold.
Other notable performers included BetMGM, which posted $2.2 million in revenue from $47.9 million in bets, achieving a 4.59 percent hold. Caesars followed with $1.5 million in revenue from $26.8 million in wagers, delivering a 5.60 percent hold. Bet365 was the only other operator to cross the $1 million revenue threshold, earning $1.1 million from $20.1 million in bets, resulting in a 5.47 percent hold.

In addition to the commercial betting results, Arizona’s tribal gaming market also saw growth. In the first quarter of 2024, tribal gaming operations contributed $43.9 million to the state’s benefits fund, up 3.6 percent from last year, providing a significant boost to the state’s economy.