In December 2023, the sports betting landscape in Arizona experienced a noticeable shift, with a decrease in wagered dollars compared to the preceding month. However, this apparent setback was overshadowed by a significant uptick in profits, setting a new revenue record for the state at an impressive $67.7 million. The dynamics of Arizona’s sports betting ecosystem continued to evolve, revealing both challenges and opportunities.
December’s betting handle registered at $693.31 million, reflecting a marginal 2.8% decrease from November’s robust figure of $713.59 million. Despite this dip, the consecutive setting of Arizona betting records for revenue over the past two months is an encouraging sign for the state’s burgeoning sports betting industry. It indicates a resilience that promises continued growth and maturation.
Breaking down the December figures, online wagering emerged as the predominant channel, with $685.10 million in bets, while retail establishments contributed $6.45 million. The online segment yielded $65.25 million in revenue, while retail sportsbooks were responsible for $625,986. A noteworthy $240,604 came from limited event wagering, with Turf Paradise horse racing track securing a substantial portion at $106,247.
Wide Range of Betting Options
The diverse array of betting options available to Arizona bettors is exemplified by the presence of leading online gambling sites, including regulated offshore options and locally-licenced platforms. FanDuel led the pack in December, boasting a handle of $236.3 million and a revenue of $23.7 million. DraftKings/Crown Gaming closely followed with a handle of $228.5 million, although their revenue was $9.9 million less than FanDuel, despite slightly higher bets.
BetMGM claimed the third position, accruing $6.1 million in revenue and total bets of $82.7 million. Meanwhile, Caesars secured the fourth spot in both handle and revenue. This competitive landscape showcases the dynamic nature of the market and the strategic positioning of key players.
Collectively, the state’s sportsbooks reported claiming $17.8 million in free bets and promotional credits during December. A notable detail is that almost all of this amount, except $4,700, originated from online wagering. Sportsbooks are permitted to deduct these promotional amounts from their revenue, resulting in an adjusted figure subject to privilege fees.
It is important to note that these figures do not account for offshore gambling. With gambling laws in Arizona a bit behind many of the other states in the US, many people turn to offshore offerings for their online gambling. If these figures included data from offshore services, it’s safe to say the figures would be a lot higher.
How the State Benefits
Arizona’s privilege fee structure entails an 8% charge for wagers at retail sportsbooks and a 10% charge for online wagers. This translates to the state potentially earning slightly more than $4.8 million in December. Since Arizona’s sports betting journey commenced on September 9, 2021, the cumulative privilege fees have reached an impressive $69.26 million, based on a total wagered amount of $14.3 billion.
A significant portion of the state’s share has been accrued in the last 15 months, with the 2023 calendar year alone contributing $34.8 million. For the first half of the current fiscal year, spanning until June 30, 2024, Arizona has already earned $19.8 million. At this pace, it anticipates further milestones and the establishment of new Arizona betting records in the near future.
Despite the state trailing others in promptly releasing sports betting figures, Arizona accommodates wagers from 17 different betting outlets. Notably, Bet365 entered the scene on February 5, 2024, providing additional options for sports bettors in the state. Bet365 has expanded its footprint to nine different states across the U.S., contributing to the diversification of the sports betting landscape.
Conclusion
As the football season concludes, January’s sports betting numbers are anticipated to experience a slight decline. However, the enduring popularity of basketball in the state is expected to mitigate this decrease as numerous basketball enthusiasts engage in expert betting picks and continue placing their wagers on games.
It’s worth highlighting that, as of now, online casinos remain unauthorized in Arizona, with no ongoing legislative efforts aimed at legalizing online casino betting. This aspect further shapes the state’s gambling landscape, leaving room for potential developments in the future.
