The Arizona Department of Gaming disclosed another milestone for the state’s sports betting industry, reporting a robust gross sports betting revenue of $70.9 million for January, marking the second consecutive month of record-breaking performance for operators in the Grand Canyon State.
This revenue figure represented a 4.8% increase from the previous record set in December, amounting to $67.7 million. Moreover, it showcased a staggering 49.4% surge compared to the same period in January 2023.
After deducting federal excise taxes, the gross revenue stood at $69.3 million, with the state being eligible to tax $46.2 million in adjusted gross revenue after promotional deductions, resulting in a total tax collection of $23.2 million.
January Handle Nearly Tops All-Time Record for State
The total handle for January stood at $706.4 million, slightly below November’s all-time high of $713.6 million but still marking the second instance of surpassing the $700 million milestone in Arizona sports betting history.
This represented a notable increase of 19.5% compared to January last year, with a slight 1.9% uptick from December 2023’s total handle of $693.3 million. Notably, wagering via sports betting apps dominated, accounting for 98.8% of all handle, totaling $698 million.
The state collected $4.6 million in tax revenue, the second-highest total on record, marking the third occasion where monthly receipts exceeded $4 million. The operators’ statewide hold surpassed double digits for the first time since July, reaching a shade over 10%, marking the eighth instance of achieving this milestone.
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FanDuel and DraftKings Continue Reign in Arizona
Most of the revenue was attributed to the state’s top three mobile sportsbooks — FanDuel, DraftKings, and BetMGM — which collectively amassed $64.8 million in gross winnings.
FanDuel led the pack, surpassing $30 million in gross revenue for the first time, recording $31.9 million. DraftKings achieved an all-time high in gross revenue at $23.1 million, while BetMGM flirted with the $10 million revenue mark, finishing just shy of $10 million.
Caesars emerged as the only other mobile operator to record a seven-figure revenue total, generating $3.5 million. Meanwhile, ESPN BET, one of the new sportsbooks, experienced a third consecutive month of declining revenue. BetRivers and Hard Rock Bet witnessed commendable performances, achieving their best revenue figures.
However, SuperBook experienced a setback, being the sole mobile sportsbook to post a monthly loss in gross revenue, writing off $29,700 in total. This marked the second consecutive month of losses for SuperBook.
Overall, January showcased continued growth and resilience in Arizona’s sports betting market, with record-breaking revenue figures and sustained interest from operators and bettors alike.
Arizona Sports Betting Trends Continue Into The New Year
Arizona’s sports betting scene concluded 2023 on a resounding high note, with the Department of Gaming reporting a staggering $67.7 million in gross revenue for December. This figure surpassed the previous record set in September and marked the top three revenue totals in the state’s 28 months of sports wagering.
The strong finish propelled Arizona’s gross revenue for the entire year to $557.4 million, representing a substantial 17.8% increase from 2022. Moreover, the state saw a notable uptick in the hold, reaching 8.5%, up nearly two-thirds of a percentage point.
Handle for December stood at a robust $693.3 million, a 21.1% increase compared to the same period in 2022. Despite falling slightly short of November’s record handle, Arizona’s sportsbooks still accepted more than $6.57 billion in bets throughout 2023, an impressive 8.9% increase from the previous year.
The state’s tax revenue also reached new heights, with a record $48.3 million adjusted gross revenue eligible for taxation in December. This translated to $4.8 million in monthly tax receipts, contributing to a total tax revenue of $34.8 million for the year, a significant $5.9 million increase from 2022.
Arizona’s remarkable performance in December capped off a record-breaking year for sports wagering nationwide, with total handle exceeding $121 billion and gross revenue surpassing $10.8 billion. The 9.1% hold observed nationwide marked a notable increase from previous years.
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