Arizona surpasses $4 billion in total sports betting volume.
Arizona's Sports Betting Market Reaches Milestone, Surpasses $4 Billion in Wagers
Arizona's sports betting market continued to flourish in its inaugural year, becoming the 11th state to surpass $4 billion in total bets, as reported by the Arizona Department of Gaming. The Copper State reached this milestone in just eight months, only missing the mark by a small margin in December.
For the month of April, Arizona recorded nearly $513 million in handle, positioning itself sixth nationally behind New York, New Jersey, Illinois, Nevada, and Pennsylvania. It lagged behind Nevada by less than $77 million. Despite only releasing four revenue reports for the year, Arizona ranks seventh nationally in handle with over $2.2 billion in wagers.
April's handle showed a 25.8% decrease from March's record volume of $691 million, reflecting the expected dip in betting activity with a lighter sports schedule. Gross operator revenue also saw a notable drop, falling 21.4% to $29.2 million, while the sportsbooks' win rate increased more than one-third of a percentage point to 5.7%.
Promotional credits and deductions totaled more than $12.7 million, marking a significant decline from the $18.6 million awarded in March. This permitted the state to levy taxes on the $16.5 million in positive adjusted revenue from seven mobile operators and two retail sportsbooks, generating more than $1.6 million in taxes for April.
The state's report also closed the national book on commercial sports wagering for April, with a combined handle of about $7.5 billion across the U.S. This represents a 19.1% decrease from the nearly $9.3 billion wagered in March but more than double the $3.7 billion wagered in April 2021.
Across the nation, sportsbooks slightly edged over the industry standard of 7% for win rate in April, albeit just barely, compared to 6.5% in March. Operators claimed a collective $528.1 million in gross revenue and over $452 million in adjusted revenue, resulting in state tax receipts exceeding $110.5 million.
In Arizona, there was little difference in handle between mobile rivals FanDuel and DraftKings, which combined to accept more than $300 million in wagers. FanDuel became the second operator to clear $1 billion in mobile handle in the Grand Canyon State, registering $149.8 million in bets.
FanDuel had its most robust revenue month to date, claiming close to $16.2 million in gross revenue while posting a hold of 10.8%. Its $12.3 million in adjusted revenue accounted for nearly 75% of the state's overall tax receipts.
DraftKings, conversely, saw a hold of just under 1% for April and finished with barely more than $1.5 million in gross revenue, all of which was deducted via promotional credits. This marked the first time DraftKings did not have any positive adjusted revenue since its first month of operation in September 2021.
The trends and comparisons of sports betting handle, revenue, and win rate for various mobile operators in Arizona demonstrate a competitive market. Key players in Arizona, such as BetMGM and Caesars Sportsbook, follow major brands like FanDuel and DraftKings in overall market share. Barstool Sportsbook has carved out a notable niche, appealing to a younger demographic, especially through its integration with Penn National Gaming's footprint.
Smaller operators like SuperBook, Hard Rock Sportsbook, Desert Diamond, and Bally Bet are trying to find their stride in the competitive market. These operators' hold rates, win rates, and revenue streams may vary, but they are still a part of a thriving and growing sports betting market in Arizona.
In the booming Arizona sports betting market, FanDuel set a new milestone by surpassing $1 billion in mobile wagers, reinforcing their strong position in the market. Simultaneously, line-ups for wagers continued to grow, with competitors like DraftKings, BetMGM, Caesars Sportsbook, Barstool Sportsbook, SuperBook, Hard Rock Sportsbook, Desert Diamond, and Bally Bet all vying for a share in the sports-betting wager landscape.
