Arizona Sports Betting Handle Records $6.5 Billion in 2023

Arizona sports betting has continued to skyrocket, as the state has recorded more than $6.5 billion of wagers in 2023. Sportsbooks posted a record monthly handle in Dec. 2023, as the Department of Gaming reported $67.7 million in gross revenue.

The month’s total handle stood at $693.3 million, an increase of 21.1% compared to the same period of the previous year. However, it marked a small contraction from November’s all-time high for the state: $713.6 million.

At the end of the year, Arizona sportsbooks recorded a total gross revenue of $557.4 million, a substantial increase of 17.8% compared to 2022. The overall hold percentage also experienced a similar increase by nearly a whole percentage point.

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A Year of Highs for Arizona

2023 was a highly eventful year for the Grand Canyon State, as the region’s sportsbooks broke their record for operator winnings with $60.1 million earned in September. Through the year, Arizona hit three all-time highs in the 28 months that wagering has been legal in the legion.

At the end of the year, Arizona sportsbooks had accepted more than $6.57 billion worth of wagers in a single 12-month period, an increase of 8.9% from 2022, when the overall handle was $6 billion.

With so much money being wagered, the state could collect a substantial amount of taxes in the year. With the state’s adjusted gross revenue standing at $48.3 million for Dec. 2023, it collected $4.8 million in tax receipts for the month alone. At the end of the year, the all-time total tax revenue collected for the month stood at $69.6 million.

Overall, 2023 was a record year for sports betting in the United States. Nationwide, the overall sports betting handle stood at $121 billion, causing a gross revenue generation of $10.8 billion. Arizona’s average hold for the year stood at an impressive 9.1%, an increase of more than a percentage point over 2022.

Arizona Sportsbooks Continue to Battle It Out

Unlike several other regions across the United States, FanDuel Sportsbook has been unable to eke out a significant lead in Arizona. Despite not having much of an edge, FanDuel remained Arizona’s top sportsbook.

For 2023, it posted an average hold of 9.8%, barely falling short of the coveted double-digit mark. In Dec. 2023, it set a record for the most gross gaming revenue earned by a single sportsbook in one month, raking in $29.1 million.

The previous record for the most gross gaming revenue generated in a single month was also held by FanDuel, back in Nov. 2022 when it declared a GGR of $25.1 million. Overall, FanDuel ended the year with $226.7 in operator winnings out of a $2.3 billion betting handle.

Like everywhere else in the country, DraftKings deserves mention alongside FanDuel as it has continued to stay hot on the heels of its biggest rival. Arizona is one of the tightest markets in terms of competition between these two top sportsbooks.

In 2023, DraftKings had an increase of 25.4% in promotional spending compared to FanDuel’s 55.1% in 2022, allowing it to boast of a larger jump in promotional spending, despite being outdone by FanDuel in terms of overall promotional credits and bonuses.

Finally, BetMGM was the third most successful sportsbook in Arizona in 2023, as it pulled a 10.5% hold out of its hat to take home $8.7 million in gross winnings out of a $82.7 million handle. BetMGM also spent considerably less on promotions than its rivals compared to 2022. It spent $39.1 million through the year, a significant 37.1% decline from 2022, while it accepted bets worth $901.7 million, a decline of 15.9% compared to the previous year.

The latest development in the betting market in Arizona is the arrival of bet365, which made inroads in the state by partnering with the Ak-Chin Indian Community.

Bet365 will be available to Arizona players who are looking for in-game and pre-event wagers across a wide range of sports. Arizona is the ninth state to host bet365, as the international operator continues its campaign across the United States.

READ MORE:

• Bet365 Continues US Expansion With Arizona Launch
• DraftKings, PGA Tour Set Launch Date for Sportsbook in Arizona
• US Sports Betting Revenue Tracker