Arizona Enjoys State's 2nd Best Month in Sports Betting Sector
Arizona sports betting sites had their second best month ever in March, in terms of handle, revenues, and taxes paid to state and local coffers.
Arizona's March report also closed the door on what was a terrific month for the national sports betting sector. While claiming seventh spot on the list successful legal wagering states in March, Arizona helped the broader national scene to nearly hit a record for the amount of money wagered nationwide during a single month.
With Arizona’s March numbers added in, the national sports betting handle landed at $11.3 billion, just off the record $11.5 billion set in January.
March also saw the lifetime sports betting handle in Arizona nearly hit the milestone $10 billion mark.
The Arizona March haul
The Arizona Department of Gaming on Wednesday reported a $644.7 million handle for Arizona during March, which comes in as the second best month ever for the Grand Canyon State's sports wagering sector. Only March 2022's record haul of $691 eclipsed what Arizona sports betting apps were able to accomplish this past March.
The $644.7 million is a 5.7% increase from the $609.2 million taken in during February but a year-over-year $46 million decline from the record March 2022 figures. March 2022 saw the Arizona Wildcats make the Sweet 16 in the NCAA Basketball tournament, and the Kevin Durant-led Phoenix Suns start to ramp up for their playoff run.
Total sportsbook revenues for the month of March came in at $53.5 million, Net revenues, after deductions were reported to be $37.1 million off of a slightly underwhelming 8.3% hold. The $53.5 million is a drastic jump from the $35.4 million seen in February, and a nice year-over-year spike from the $38.9 million from March 2022 when sportsbooks in Arizona held just 5.6%.
Taxes paid to the state from Arizona's best sports betting apps came in at $3.7 million, more than double the $1.6 million from February and about double the $1.86 million from March 2022.
12 of Arizona's 17 sports betting operators made a profit in March, up from just six in February. FanDuel Arizona led the way with $254.9 million in online wagers in March with DraftKings a rather distant second with $168.8 million in online bets reported during the month.
First quarter in the books
March brought the first quarter to an end for Arizona’s legal sports betting industry. The numbers demonstrate an increase in overall sports betting activity compared to the same three-month period last year. Through January, February, and March, Arizona bettors spent $1.86 billion with the state’s wagering providers, which is 5.6% higher than last year’s $1.74 billion over the same period.
Revenues for the first quarter of Arizona’s legal sports betting industry came in at $135.2 million, which is a nice 28% spike from the $106.4 million from January to March of 2022.
Tax revenue for the first quarter is also up, this time more dramatically. The $8.2 million in tax revenue for the first quarter is a staggering 83% higher than the $4.4 million paid by Arizona sports betting apps in the first three months of 2022.
Where it leaves Arizona
Arizona has been a sports betting jurisdiction to watch since launching their legal wagering platform in September 2021. They finished seventh nationally in terms of overall handle in March and should hit the milestone $10 billion lifetime handle in April, or May.
With $9.62 billion in lifetime wagers, Arizona is poised to join New Jersey, New York, Illinois, Virginia, Colorado, Michigan, and Pennsylvania as the only states to hit the $10 billion threshold.
The spring and summer months will see an inevitable slowdown … until September comes, and the start of the NFL season pours rocket fuel on the Arizona legal sports betting scene. One story to watch during the summer is the fate of the Arizona Coyotes. Arizona is in danger of losing their poorly supported NHL franchise, which could have a ripple affect on the overall wagering landscape.
