The sports betting industry in Arizona had a remarkable performance in December 2023, setting a new record for monthly revenue. According to the Arizona Department of Gaming, the state’s sportsbooks reported a gross revenue of $66.1 million, which is a 22.1% increase from the same month in 2022. The online segment dominated the market, accounting for 98.6% of the total revenue.
Online Sports Betting Leads the Way
The online sports betting operators in Arizona attracted the majority of the bets and revenue in December 2023. The total wagers placed online amounted to $685.1 million, which is slightly lower than the record handle of $713.6 million in November 2023, but still 21.1% higher than December 2022. The online sportsbooks generated a revenue of $65.2 million, which is a 62.4% increase from November 2023 and a 22.1% increase from December 2022.
The online sports betting market in Arizona is highly competitive, with several operators vying for the customers’ attention. FanDuel was the clear leader in December 2023, posting an adjusted revenue of $23.7 million and a total handle of $236.3 million. DraftKings and Crown Gaming followed in second place, with an adjusted revenue of $13.8 million and a total handle of $228.5 million. BetMGM ranked third, with an adjusted revenue of $6.1 million and a total handle of $82.7 million.
The online sports betting operators also offered generous promotions and incentives to their customers, awarding a total of $17.8 million in free bets and credits in December 2023. This resulted in an adjusted gross revenue of $48.3 million, which is the highest figure ever recorded in the state.
Retail Sports Betting Lags Behind
The retail sports betting segment in Arizona had a modest performance in December 2023, compared to the online segment. The total wagers placed at the physical sportsbooks amounted to $6.4 million, which is a 9.4% decrease from November 2023 and a 1.6% decrease from December 2022. The retail sportsbooks generated a revenue of $625,986, which is a 3.4% increase from November 2023 and a 20.8% increase from December 2022.
The retail sports betting market in Arizona is much smaller than the online market, with only two operators in the state. DraftKings and Crown Gaming had the higher revenue in December 2023, with $361,037, while FanDuel had $260,248. The retail sportsbooks paid $49,703 in taxes to the state, while the online operators paid $4.7 million.
Limited Event Wagering Operators Make a Small Contribution
The limited event wagering operators in Arizona are a niche segment of the sports betting industry, which allows certain organizations to offer bets on specific events, such as horse racing, tribal gaming, and fantasy sports. The limited event wagering operators reported a total handle of $1.8 million and a revenue of $240,604 in December 2023. They paid $19,248 in taxes to the state.
Arizona Sports Betting Industry Closes 2023 with Impressive Results
The sports betting industry in Arizona had a successful year in 2023, despite the challenges posed by the Covid-19 pandemic and the regulatory changes. The state’s sportsbooks accepted more than $6.57 billion worth of bets in 2023, which is an 8.9% increase from 2022. The state’s sportsbooks reported a gross revenue of $557.4 million in 2023, which is a 17.8% increase from 2022. The state collected $34.8 million in taxes from the sports betting industry in 2023, which is a 20.7% increase from 2022.
The sports betting industry in Arizona is expected to continue growing in 2024, as more operators enter the market and more customers embrace the online segment. The state is also looking forward to hosting the Super Bowl in February 2024, which is expected to generate a huge amount of bets and revenue for the sportsbooks.
