Sports Betting Handle Record Missed During December in Arizona, But New Revenue High Hit

On Monday, the Arizona Department of Gaming released its December revenue report, revealing that although revenues from Arizona sports betting reached a record high through top sportsbooks, the overall sports betting activity in the state did not surpass the new handle high set in November.

The final report for December marked a successful conclusion to a strong year for the Arizona legal sports betting industry. In 2023, Arizona sports betting apps and retail providers collectively generated an impressive $6.57 billion in revenue and reported $557.4 million in gross revenues.

FanDuel achieved a new record in December for single-provider revenue thanks to a strong month. Despite a lower win rate for the full year in Arizona, FanDuel had an outstanding performance in the market overall.

$693.3 million for December

In December, Arizona sportsbooks, providing Arizona sportsbook promotions, recorded $693.3 million in sports wagers. This represents a slight decrease of 2.8% from the record $713.6 million in November, but a significant increase of 21.1% compared to the $572.5 million accepted in December 2022.

In December, Arizona sports betting concluded a phenomenal 12-month run. In 2023, the top sports betting sites in Arizona saw a record-breaking $6.57 billion in wagers, marking an impressive 8.9% increase from the previous year’s total of just over $6 billion.

Revenue record

Arizona sportsbooks saw a marginal increase in their hold rate compared to previous months, leading to a new monthly gross revenue record of $67.7 million in December, despite a slight decrease in the handle.

$67.7 million surpasses the $42.3 million in sportsbook profits from November and exceeds the previous revenue record of $60.1 million in September. Additionally, it is $12 million higher than December 2022.

Arizona sportsbooks ended 2023 on a high note, achieving three of their highest revenue months ever in the final four months of the year. Grand Canyon State providers collectively generated $557.4 million in revenues for the year, largely driven by the success of top sports betting apps. This marked a significant 17.8% increase from the previous year.

Arizona sports betting sites generated record revenue in December, resulting in $4.8 million in taxes collected for the state and local governments. State operators reported $48.3 million in adjusted gross revenue, contributing to the increase.

In 2023, Arizona sportsbooks paid $34.8 million in taxes, an increase of nearly $6 million from the previous year. This brings the total lifetime tax revenue from the state’s sports betting sector to $69.6 million.

FanDuel rakes in the profits

In December, FanDuel reclaimed its title as the top Arizona sports betting site, setting a new record for monthly revenues at $29.1 million. This surpassed their previous record of $25.1 million set in November 2022.

In December, DraftKings once again reached the $20 million revenue mark, coming in second in profits with just over $20 million. This was the third time in four months that DraftKings achieved this milestone. BetMGM ranked third in both handle and revenues, earning $8.7 million in revenues during the month of December.

Caesars came in fourth place, while ESPN BET landed in fifth in the Grand Canyon State market in December, with slightly underwhelming results.