Arizona Enjoys Sports Betting Milestone Thanks to September Football

The significance of the return of professional and college football to the legal sports betting industry and the providers’ financial success is widely recognized.

In its September earnings report, the Arizona Department of Gaming revealed that Arizona sports betting apps had their most successful month since March, with significant increases in both year-over-year and month-over-month handle and revenue totals.

Arizona sports betting reached a combined $1 billion in revenue in just 25 months, making it the fastest state to reach this milestone compared to Illinois (27 months), Virginia (29 months), New York (31 months), and New Jersey (35 months).

$610.7 million wagered

In September, Arizona bettors wagered a total of $610.7 million through betting apps and retail locations, marking a 13.5% increase compared to the same month in 2022. This figure is also more than $250 million higher than the amount bet in August 2023, representing a 70% increase.

Arizona sports betting providers surpassed $600 million in bets for the second time in 2023, marking the first instance since March that they reached this milestone.

Arizona sports betting sites generated approximately $605.2 million of the total $610.7 million handle in September, with retail contributing just over $4 million to the overall handle.

$32.6 million in adjusted gross income

The NFL’s impact on the industry was evident in the positive revenues reported by providers, indicating a rise in the use of Arizona sportsbook promotions in the future. September saw a significant increase in Arizona handle, resulting in approximately $32.6 million in adjusted gross revenue.

Arizona betting sites accounted for $32 million in net revenue, while retail providers contributed the remaining amount.

The 9.8% hold rate on a net revenue total of $32.6 million resulted in $3.2 million in taxes collected. This brings the year-to-date tax total for the first nine months of 2023 to $24.7 million, an increase of $6.3 million compared to the same period last year.

Total gross receipts amounted to $59.7 million before deductions and free bets were taken into account. However, $27.1 million in credits and free bets reduced profits for September.

Promotional spending for the Grand Canyon State in October was the second-highest monthly total since September 2021, when $31.2 million was reported during the first full month of Arizona sports betting.

Gross gaming revenue of approximately $59.7 million is nearly twice the amount earned in August, and represents an 8.2% improvement compared to September 2022.

The Big 2 rule

In September, DraftKings and FanDuel remained the top Arizona sports betting apps, accounting for approximately 65% of the state’s total handle for the month.

Since its launch, DraftKings has been the top-performing sportsbook in Arizona, with $3.82 billion in wagers. FanDuel is a close second, trailing by only $11.3 million.

DraftKings made history in September by setting a new record in the Arizona legal sports betting market with a $218 million handle. Additionally, their $20.9 million in revenue for the month ranked second among providers in Arizona. DraftKings also offered the second-highest amount of promos and credits with $11.4 million, further solidifying their leading position in the industry.

FanDuel came in second place for September handle, with $179.2 million in bets. However, they surpassed the revenue battle by earning $22.7 million, thanks to a 12.7% hold which was better than DraftKings.

In September, BetMGM came in third place with $89.9 million in wagers and $9.9 million in gross winnings, while Caesars ranked fourth with $56.2 million in bets and $4.5 million in profits for the month.