Arizona Sports Betting Handle Tops $600 Million for Sixth Straight Month in February

In February, Arizona’s legal sports betting industry continued its streak of $600 million monthly handles for the sixth consecutive month, with the best sports betting sites thriving in the Grand Canyon State.

The Arizona Department of Gaming report indicates that although sports betting in Arizona saw its lowest monthly handle since September, there was a year-over-year increase in sports wagering activity compared to February 2023, when the Super Bowl was hosted in Phoenix.

Arizona’s February contribution pushed the nation’s sports betting handle over $11 billion for the first time in a single month, marking a significant milestone in the industry.

In February, revenues for Arizona sports betting apps and the state’s retail providers experienced a mixed performance, with significant year-over-year growth but a decrease compared to the previous month.

$637.5 million handle

In February, Arizona’s top sportsbooks saw a total of $637.5 million in wagers. Although this was a decrease of about 9.8% from January’s $706.4 million, overall sports betting activity increased by 4.6% compared to February 2023, reaching nearly $609.3 million. Undoubtedly, residents made the most of Arizona sportsbook promotions.

In February 2024, Arizona achieved its sixth-highest monthly revenue since the state’s legalization 30 months ago. This marks the sixth consecutive month of $600 million in revenue, with March expected to continue the streak.

In February, Arizona sports betting sites accounted for the majority of the total handle at $631.2 million out of $637.5 million. Retail betting contributed $4.6 million, while limited event wagering operators added $1.6 million to the total handle.

As of now, with a few states still outstanding in reporting their February figures, the total national handle for the month is just over $11 billion. Reported legal sports betting wagers across the country have reached $11.3 billion, setting a new record and showing a significant 25.7% increase from February 2023.

$54.3 million in gross revenue

In February, Arizona’s top sportsbooks generated $54.3 million in gross revenue. This reflects a 23.5% decrease from the record $70.9 million reported in January, but marks a significant 53.4% increase from $35.4 million in February 2023.

The year-on-year increase was driven by an 8.5% hold rate for Arizona sportsbooks in February, representing a 2.7 percentage point rise from the previous year.

In February, Arizona sports betting providers reported adjusted taxable revenues of $28 million, resulting in the state collecting $2.8 million in taxes. For the first two months of 2024, the adjusted gross revenue for Arizona operators totaled $74.1 million, marking a significant 64.3% increase from the previous year.

So far this year, tax contributions from state providers have increased by approximately $2.9 million compared to last year.

FanDuel tops in Arizona market 

In February, FanDuel continued its trend as the most popular sports betting app in Arizona. FanDuel Arizona accounted for $230.3 million of the state’s total handle, generating $20.2 million in revenue with an 8.8% hold. This marked the third consecutive month that FanDuel exceeded $20 million in monthly revenue in Arizona.

In February, DraftKings Arizona placed second in the state’s sports betting market, accepting $206.2 million in bets and generating $19.2 million in revenue. BetMGM Arizona secured the third position on the podium with $73.3 million in accepted wagers and $5.9 million in revenue.

In fourth place was Caesars Arizona, which saw $43.6 million in wagers and $1.5 million in revenue from a disappointing 3.5% win rate. Following closely behind was ESPN BET in fifth place, with $26.6 million in bets and $2 million in total revenue. After making adjustments to their gross revenue, ESPN BET paid taxes for the first time in the Arizona market.

After the launch of its sports betting product in Arizona, bet365 made a splash in the state with aggressive promotional efforts. The company saw $24.5 million in accepted wagers and generated $3.4 million in revenue, boasting an impressive 14.4% hold rate.