Record sports betting in Arizona hits $563 million mark in January
In the dust of Arizona's wild west, the sports betting craze reached new heights, as the mighty Antelope State wrapped up an extraordinary start to 2022, shattering records and cementing itself as a major player in the realm of wagering delight. The Department of Gaming unleashed the long-awaited numbers for January, revealing a monstrous handle of nearly $563.7 million - catapulting Arizona into the prestigious club of nine states boasting a monthly handle of half a billion dollars, alongside New York, New Jersey, Nevada, Illinois, Pennsylvania, Indiana, Colorado, and Michigan.
Mark your calendars, as Arizona was the fourth state to grace us with this impressive feat, joining the illustrious ranks of the Empire State, Colorado online sports betting, and Indiana, not to mention the successful mobile launch of Big Apple bettors. The Copper State took a mere five months to surpass $2 billion in all-time handle, making it the 12th state to conquer this landmark, and the quickest to do so.
January's handle marked a gargantuan 12.9% increase from December's short-lived record of $499.2 million. The state joyfully crossed the $450 million threshold in wagers for the fourth time, all within full months of betting fever. Together, the state's two retail and 12 mobile sportsbooks generated $40.5 million in gross revenue, a modest 5% uptick from the $38.6 million that closed out the previous year. Promotions were aplenty, amounting to an eye-popping close to $20.9 million. Operators have been quite generous, lavishing nearly $118 million in sweet offers since the game began.
The state dished out $19.6 million in taxes from the adjusted revenue generated, resulting in nearly $2 million worth of tax receipts. Sports wagering has funneled in a grand total of $7.9 million in taxes since the festivities commenced, with Arizona eligible to tax approximately 40% of the staggering $197.3 million in gross revenue generated.
With over $9.8 billion in wagers accepted in January alone, 2022 got off to a rip-roaring start for the sports betting industry. This astronomical figure more than doubled the $4.4 billion handle from January 2021, breaking previous records and trumping the previous national high of more than $7.5 billion set in October.
New York's digital debut also contributed to a nationwide monthly state tax haul record of $128.6 million, with the Empire State accounting for just shy of half of that total, boasting a stratospheric 51% tax rate on operator revenue. The national win rate was a respectable 6.6%, resulting in nearly $648 million in operator revenue. While short of the record of $723.3 million set in November, when the win rate was over 3 percentage points higher and the handle was a whopping $2.4 billion lower, there's no denying the Empire State played a major role in these record-breaking numbers.
The Arizona sports betting landscape remained firmly under the thumb of titans DraftKings, FanDuel, and BetMGM, who together accounted for a remarkable 80% of the $558.7 million mobile and online handle in January. These triumvirates were also monthly revenue kings, amassing eight-figure gross revenues for the month, but FanDuel scoped out the top adjusted operator revenue of nearly $8 million due to its thrifty use of promotions compared to the others.
Conversely, BetMGM shelled out the lion's share of promotional credits amongst Arizona operators, parting ways with over $8.6 million of sweet offers. This ultimately resulted in a dramatic swing of revenue, as BetMGM's gross revenue soared to nearly $10.7 million, but after promotions, its adjusted revenue dwindled to barely over $2 million.
DraftKings was BetMGM's nearest competitor, coughing up close to $35 million in promotional spend since launch. However, more than a third of its total promotional bounty - $12.5 million - was expended in September alone. Regardless, DraftKings still managed to earn nearly $6.7 million in adjusted revenue for January.
Caesars, Barstool, and WynnBET comprised the next influential operators in the Arizona betting game, reporting handles well into the eight-figure realm. Caesars remained a clear-cut fourth, missing out on its December high by a mere $1.5 million, while Barstool inched ever closer to the $100 million handle milestone with $21.4 million in wagers. Wynn's wagers dropped significantly since its November peak, registering close to $12.8 million for January.
First-timers SuperBook and Fubo started off strong in Arizona, with SuperBook netting over $1 million in handle and Fubo just missing the mark, wrangling in less than half that total. Newcomer SaharaBets managed to take in nearly $63,000 in wagers and barely survived the experience, with cheerful bettors racking up a $490 profit.
While specific historical rankings aren't at our fingertips, Arizona's sports betting scene in January 2022 was a furious and fortune-filled dance of operators vying for a piece of the gargantuan pie created by fervent bettors. The stage was set for a thrilling year ahead.
- In the sports-betting industry, DraftKings, FanDuel, and BetMGM maintained their dominant positions in Arizona, accounting for 80% of the mobile and online handle in January.
- Despite spending over $8.6 million on promotions, BetMGM's adjusted revenue in January dwindled to barely over $2 million after considering promotional credits.
- The spread between the handles of Arizona sportsbooks was significant, with DraftKings earning nearly $6.7 million in adjusted revenue, FanDuel taking in close to $8 million, and Caesars reporting handles well into the eight-figure realm.
