In less than a year, Arizona earns a staggering $5 billion from sports betting operations.
In the aftermath of PASPA's demise, Arizona has become the 11th state to surpass a staggering $5 billion in sports wagering handle. As the state celebrated the one-year anniversary of legalized sports betting, it separated itself from Tennessee, claiming the tenth spot in all-time handle by state. Arizona's rapid progress, achieving the $5 billion mark in 11 months, was faster than both Tennessee and Nevada.
Despite a 8.9% drop compared to June, July's gross revenue skyrocketed by 82.3%, just barely falling short of $22 million. This significant increase was due to a substantial win rate of 7.6%, more than double the previous month's rate of 3.8%. The adjusted revenue, combining the higher win rate and lowered promotional credits (down 24.2% from June), reached over $15 million.
As a result, the state pocketed $1.5 million in tax receipts, bringing the 2022 total to $12.5 million.
So, where's the majority of Arizona's sports betting handle coming from?
Track the all-time top 10 sports betting handles post-PASPA by state:
- New Jersey - $29.1 billion
- Nevada - $25.57 billion
- Pennsylvania - $15.54 billion
- Illinois - $13.65 billion
- New York - $9.76 billion
- Indiana - $8.55 billion
- Colorado - $7.88 billion
- Michigan - $6.8 billion
- Virginia - $5.89 billion
- Arizona - $5.07 billion <-NEW
But it's clear that mobile betting has been the primary contributor, accounting for more than 98% of Arizona's total handle, and is approaching the $5-billion mark. Out of this nearly five billion dollars, a significant portion has been funneled through four online sportsbooks: DraftKings, FanDuel, BetMGM, and Caesars.
Leading the way is DraftKings, with over $1.5 billion in handle, followed closely by FanDuel, with nearly $1.4 billion. BetMGM, on the edge of joining the $1 billion handle club, accepted $53.6 million in bets for July, just $356,000 shy of the mark. Caesars stands in fourth with $665 million all-time, with their July handle being their lowest since launch.
DraftKings and FanDuel have accounted for 59.1% of Arizona's total mobile handle, with their dominance further emphasized when BetMGM and Caesars are added, accounting for 92.6% of the statewide total. The remaining mobile sportsbooks in Arizona have generated a combined $369.9 million handle, with Barstool Sportsbook and WynnBET being the only ones to reach nine figures.
FanDuel remains a beacon on the revenue side
FanDuel led all mobile operators in July, generating $9.2 million in gross revenue, based on a state-leading $91 million handle and a 10.1% win rate. DraftKings, despite handling $835,000 less, still managed to claim $3.2 million in gross revenue, representing a 3.5% win rate—impressively better than June, where it paid out $3.1 million more than the $92.8 million it accepted in bets.
BetMGM registered the highest hold (10.4%) among major mobile sportsbooks, resulting in $5.6 million in gross revenue, and significantly reducing its promotional spend to an all-time low of $1.6 million in July.
FanDuel's retail sportsbook at the Footprint Center made its second consecutive monthly loss, finishing $14,060 in the red, though this was an improvement from June's $130,565 paid out in excess of the $1.4 million in bets placed. This was the only brick-and-mortar book to post a loss in July, as all 10 racetracks and OTB sites recorded a combined 20.3% win rate, accumulating $59,000 from $289,000 wagered.
The majority of Arizona's sports betting handle is derived from mobile betting, which accounts for over 98% of the state's total handle and is approaching the $5-billion mark. Within this nearly five billion dollars, leading mobile sportsbooks like DraftKings and FanDuel hold significant portions, with DraftKings having over $1.5 billion in handle and FanDuel nearly $1.4 billion.
