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

On Tuesday, Arizona revealed a new record in terms of revenues for state sports wagering providers and the second-best month ever in terms of overall wagering activity, including some excellent months for some of our best sportsbooks.

The Arizona Department of Gaming January revenue report showed that Arizona sports betting apps and the state's retail providers started 2024 in style, with a nearly 50% year-over-year increase in gross gaming revenues and a 19.5% jump in the year-over-year handle.

The Arizona sports betting scene followed the pattern of quality numbers seen in the broad expanding U.S. legal sports betting industry in January. The trick will be to maintain momentum in February, which has already seen sharp drop-offs in overall wagering activity in various jurisdictions nationwide.

$706.4 million January handle

Arizona sportsbooks accepted $706.4 million in sports wagers in January, its second-best month after the $713.6 million record set in November. January represented the second time in three months that providers in the state crossed the $700 million plateau as residents continued to enjoy many Arizona sportsbook promos.

The $706.4 million represents a small 1.9% month-over-month increase from the $693.3 million reported in December but is a 19.5% year-over-year increase from the $591.22 million posted in January 2023.

Arizona sports betting apps accounted for $698 million of the overall sports betting total in the Grand Canyon State, with retail making up the other $8.4 million.

Revenues set an all-time mark

Revenue totals for Arizona sportsbooks set a new record in January as $70.9 million in gross gaming revenue was reported for state sportsbooks, topping the previous record of $67.7 million set the month before by 4.8%.

It is also an astounding 49.4% year-over-year improvement from the nearly $47.5 million gross revenue reported in January 2023. The hold rate for Arizona's best sportsbooks was just over 10%, the first time since July that it has hit the 10% mark.

After promotional deductions and federal excise tax, Arizona sportsbooks posted $46.2 million in adjusted gross revenue.

Taxes paid by Grand Canyon State sports betting providers totaled $4.6 million, the second-best revenue haul ever for needy Arizona state and local tax coffers.

FanDuel, DraftKings and BetMGM maintain podium spots

As it has become customary in the Arizona legal sports betting market, FanDuel has become the top-performing Arizona sports betting app. It accounted for a record $258.1 million in January wagers, eclipsing the $250 million monthly plateau for the second time. 

FanDuel Arizona remains the only provider in that market to hit the $250 million mark. It also led the way in revenues with another record $31.9 million in January profits from a robust 12.4% hold. No other Arizona sportsbook has hit $30 million in a given month.

DraftKings Arizona accepted $228.2 million in January wagers, the fourth straight month it has taken in more than $220 million. DraftKings had its best month in revenues in the Arizona market with $23.1 million, thanks to a 10.1% hold.

BetMGM Arizona finished third with just under $84.7 million in accepted bets in January and finished with an all-time best of just under $10 million in revenues from an 11.7% hold.

ESPN BET Arizona came in fourth with a $49.5 million January handle. However, a sub-1% hold rate held the provider to just $472,000 in winnings. ESPN BET boasted a 7.1% market share in the Arizona market in January, topping the first-year goal of a 7% share.

Caesars Sportsbook Arizona rounded the top five with a $50.3 million January handle. However, it did finish fourth in terms of revenues, with $3.5 million in winnings thanks to a 7% hold.

BetRivers Arizona ($6.8 million handle and $533,200 in revenues) had its best month in the Grand Canyon State market, while Hard Rock Bet ($7.1 million handle) and SuperBook ($1 million handle) completed the top eight Arizona sportsbooks.