Arizona Reports $706.4 Million in Sports Bets in January and Posts Revenue Record

Arizona announced on Tuesday that state sports wagering providers achieved a new record in revenues and the second-highest month of overall wagering activity, with some of the top sportsbooks experiencing exceptional months.

The January revenue report from the Arizona Department of Gaming revealed that Arizona sports betting apps and retail providers had a strong start to 2024. Gross gaming revenues saw a nearly 50% increase compared to the previous year, while the handle experienced a 19.5% jump year-over-year.

In January, Arizona’s sports betting industry continued to show strong numbers, mirroring the growth seen in the overall U.S. legal sports betting market. The challenge now is to sustain this momentum into February, as many states have already experienced significant declines in betting activity.

$706.4 million January handle

In January, Arizona sportsbooks saw $706.4 million in sports wagers, marking the second-highest month following the record of $713.6 million set in November. This was the second instance in three months that providers in the state surpassed the $700 million mark, as residents took advantage of various Arizona sportsbook promotions.

The $706.4 million is a modest 1.9% increase from the $693.3 million reported in December, but it marks a significant 19.5% rise from the $591.22 million posted in January 2023.

In Arizona, sports betting apps contributed $698 million to the total sports betting revenue, while retail betting accounted for $8.4 million.

Revenues set an all-time mark

Arizona sportsbooks saw a record-breaking month in January with $70.9 million in gross gaming revenue, surpassing the previous month’s record of $67.7 million by 4.8%.

The gross revenue reported in January 2024 was an impressive 49.4% higher than the nearly $47.5 million reported in January 2023. Arizona’s top sportsbooks achieved a hold rate of just over 10%, marking the first time since July that it reached this milestone.

Arizona sportsbooks reported adjusted gross revenue of $46.2 million after accounting for promotional deductions and federal excise tax.

Arizona state and local tax coffers received their second-highest revenue haul ever of $4.6 million from taxes paid by Grand Canyon State sports betting providers, benefiting those in need.

FanDuel, DraftKings and BetMGM maintain podium spots

FanDuel continues to dominate the Arizona legal sports betting market, setting a new record with $258.1 million in January wagers. This marks the second time the app has surpassed the $250 million mark in a single month.

FanDuel Arizona is the only provider in the market to surpass $250 million in profits. In January, they set another record with $31.9 million in revenue, leading the way with a 12.4% hold. No other sportsbook in Arizona has reached $30 million in a single month.

In January, DraftKings Arizona saw a total of $228.2 million in wagers, marking the fourth consecutive month of surpassing the $220 million mark. The Arizona market experienced its highest revenue month yet, reaching $23.1 million, largely due to a 10.1% hold.

In January, BetMGM Arizona ranked third with nearly $84.7 million in accepted bets and achieved a record-breaking revenue of just under $10 million with an 11.7% hold.

Arizona’s ESPN BET ranked fourth in January with a $49.5 million handle. Despite this, a hold rate of less than 1% limited the provider’s winnings to just $472,000. ESPN BET exceeded expectations with a 7.1% market share in Arizona, surpassing the initial goal of a 7% share.

Caesars Arizona was among the top five in January with a $50.3 million handle. Despite this, it came in fourth place in terms of revenue, earning $3.5 million with a 7% hold.

In the Arizona sports betting market, BetRivers had its most successful month with a $6.8 million handle and $533,200 in revenues. Hard Rock Bet and SuperBook also ranked in the top eight sportsbooks, with handle amounts of $7.1 million and $1 million respectively.