Arizona Sports Betting Posts Record January with $563M Handle
Arizona witnessed a record-setting sports betting handle in January, becoming the fastest to cross $2 billion in overall handle. The Arizona Department of Gaming (ADG) released the numbers Friday after a long wait.
According to the official figures, Arizona’s mobile and retail sportsbooks posted $563.7 million, up 12.9% from December’s $499.2 million – also a record then.
The state bettors wagered an average of $18.2 million on a daily basis over the 31 days of January. The daily average in December was $16.1 million.
The increased betting volume led to $41.9 million in gross sports wagering revenue for the Arizona operators, representing a 5.2% increase from $39.8 million in December.
The hold rate was 7.4% – a higher rate in January compared to other bigger markets in the nation.
But the state levied tax at $19.6 million in gross event wagering receipts as $20.9 million was dished out in promotional credits. As a result, the state generated $2 million in taxes.
Mobile bets accounted for 99.1% – or $558.7 million – of the Arizona sportsbooks’ January handle. Only $5 million was wagered through retail sportsbooks.
Arizona Fastest to Surpass $2 billion Handle
Arizona also required just the fifth month of betting to top $2 billion in the all-time handle, becoming the 12th state to reach that milestone and the fastest to it.
Arizona became the fourth state to hit its first January handle of one-half billion dollars. The others are New York, Colorado, and Indiana.
The Copper State also became the eighth state to accept over $500 million in wagers over a single month.
It was also the ninth state in the post-PASPA era, with at least one monthly handle of over $500 million. The other states are Colorado, Illinois, Indiana, Michigan, Nevada, New Jersey, New York, and Pennsylvania.
DraftKings, FanDuel, and BetMGM Top Arizona Operators
The Boston-based DraftKings led in terms of handle, accepting $173.1 million worth of wagers – all online. The New York-based FanDuel took in $153.9 million, while BetMGM attracted $120 million worth of bets – all online.
Caesars was the fourth-largest operator in Arizona sports betting with a $73.5 million handle, and Barstool Sportsbook rounded out the top five with $21.4 million.
WynnBet reported nearly $12.8 million in handle for January.
Arizona Catapults January to a Record-Breaking Month for the US
Arizona’s sports betting concluded January as the record-breaking month for the US sports betting industry. More than $9.8 billion was handled by US sportsbooks during the first month of this year. It is more than double what was wagered during the month of Jan. 2021, which brought $4.4 billion.
The previous national record came in Oct. 2021, when the US sportsbooks combined to post $7.54 billion in the overall handle.
New York’s 51% tax rate on sports betting revenue has clearly swelled to a record national monthly state tax haul of $128.6 million, with the Empire State accounting for nearly half that total with nearly $63.4 million.
The average win rate for January was around 6.6%, which brought about almost $648 million in gross operator revenue.
How Have We Reached Here?
Arizona sportsbooks went live in September and posted $291.2 million in handle. But every month since October, the Copper State has posted over $450 million in handle every month.
Only New York sports betting was quicker to its $500 million handle in the nation, outshining more populous states like Illinois, Michigan, and Pennsylvania to reach the milestone.
Currently, 18 of Arizona’s 20 allocated sports betting licenses have been filled. Only the San Juan Southern Paiute Tribe and its partner Digital Gaming are expecting their app launch.
As March Madness concludes, C.J. Pierre, a leading analyst for PlayAZ, believes sportsbooks will begin to slow down. But he added that the Copper State’s sportsbooks took complete advantage of the football season, believing that the industry would be on solid footing in the coming days.