Arizona Enjoys State’s 2nd Best Month in Sports Betting Sector

Arizona sports betting sites had their second highest performing month in March, with record-breaking handle, revenues, and tax contributions to state and local governments.

In March, Arizona’s report marked the end of a successful month for the national sports betting industry. Arizona ranked seventh among legal wagering states, contributing to a nearly record-breaking amount of money wagered nationwide during the month.

After including Arizona’s March figures, the total national sports betting handle reached $11.3 billion, falling just shy of the record $11.5 billion set in January.

In March, Arizona’s lifetime sports betting handle came close to reaching the significant milestone of $10 billion.

The Arizona March haul

In March, the Arizona Department of Gaming announced that the state had a $644.7 million handle, making it the second highest month for sports wagering in Arizona. The only month that surpassed this was March 2022, which had a record haul of $691 million.

The revenue of $644.7 million represents a 5.7% growth from the $609.2 million generated in February, but it marks a $46 million decrease compared to the record figures of March 2022. During March 2022, the Arizona Wildcats reached the Sweet 16 in the NCAA Basketball tournament, and the Phoenix Suns, led by Kevin Durant, began preparing for their playoff push.

In March, sportsbook revenues totaled $53.5 million, with net revenues of $37.1 million after deductions and an 8.3% hold. This marked a significant increase from the $35.4 million in February and a notable year-over-year rise from the $38.9 million in March 2022 when the hold was just 5.6%.

The state of Arizona collected $3.7 million in taxes from the top sports betting apps, which was more than double the $1.6 million collected in February and about double the $1.86 million collected in March 2022.

In March, 12 out of Arizona’s 17 sports betting operators were profitable, compared to only six in February. FanDuel Arizona was the top performer, generating $254.9 million in online wagers, while DraftKings came in second with $168.8 million in online bets for the month.

First quarter in the books

The first quarter of the year marked the end of Arizona’s legal sports betting industry in March, showing a significant increase in overall sports betting activity compared to the same period last year. Arizona bettors spent $1.86 billion with the state’s wagering providers from January to March, a 5.6% increase from the $1.74 billion spent during the same three-month period in the previous year.

In the first quarter of Arizona’s legal sports betting industry, revenues reached $135.2 million, marking a 28% increase from the $106.4 million generated in January to March 2022.

Tax revenue for the first quarter has significantly increased, with a total of $8.2 million collected. This marks an impressive 83% increase compared to the $4.4 million paid by Arizona sports betting apps in the first quarter of 2022.

Where it leaves Arizona

Since the launch of their legal wagering platform in September 2021, Arizona has become a notable sports betting jurisdiction to keep an eye on. In March, they ranked seventh in the nation for overall handle, and they are on track to reach the impressive $10 billion lifetime handle milestone by April or May.

Arizona is approaching the $10 billion wager milestone, with a lifetime total of $9.62 billion. This would put them in the company of states like New Jersey, New York, Illinois, Virginia, Colorado, Michigan, and Pennsylvania.

During the spring and summer months, there will be a noticeable decrease in activity, but once September arrives and the NFL season kicks off, the Arizona sports betting industry will experience a surge in momentum. One key development to monitor in the coming months is the future of the Arizona Coyotes. The NHL franchise, which has struggled with low attendance, is at risk of relocation, potentially impacting the betting market as a whole.