Arizona’s April Sports Betting Handle Was $353M, Total Since Legalization Tops $10B

Article ByDavid Weir

July 3, 2023

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Posted in: Arizona Gambling News, US Gambling News, US Sports Betting News

Arizona’s sports betting operators brought in $353 million in total wagers in April, according to the latest figures released this week by the Arizona Department of Gaming.  

That makes the state the fastest to surpass $10 billion in sports wagering handle since the repeal of the Professional and Amateur Sports Protection Act, or PASPA.

This milestone was reached in just 20 months since legalization outpacing Illinois, which took 22 months to achieve the same feat.

However, despite that headline figure, April actually saw a slight dip in the state’s sports betting handle. The $535.7 million total is a decrease of 16.9% from March’s $644.8 million. Although, it was also a 4.5% year-on-year increase from April 2022’s $512.9 million.

Related: The best online sportsbooks in Arizona, reviewed and rated

The Dominance of Online Betting

The vast majority of Arizona’s betting handle comes from online platforms. $531.2 million was wagered digitally in April, with only $3.7 million in bets taken at retail sportsbooks. That’s a fractional 0.7% of the market.

This trend is replicated across the US, with bettors seemingly preferring the ease and convenience that mobile sports betting offers.

With that kind of market share for retail books, it’s no wonder that NASCAR confirmed this week that Barstool Sports will not be opening its planned retail location at Phoenix Raceway.

Market Winners

In the mobile sports betting space, Arizona is also a competitive market, with just a few top competitors taking most of the wagers.

The three major players in the market, FanDuel, DraftKings, and BetMGM Sportsbook, accounted for the bulk of the handle and revenue in April.

FanDuel led the pack with $212.9 million in bets and $21.9 million in gross revenue, marking its first double-digit hold since January.

Kentucky-based operator Churchill Downs took the bottom spot via its Twin Spires brand, with $178 thousand and 40 cents in revenue for the month. Just above them was Golden Nugget Online with $199,367.

Caesars Sportsbook saw the biggest revenue decline of the month, falling more than 50% from March’s handle to $49 million.

Revenue and Tax Contributions

Despite the month-on-month decrease in handle, Arizona saw a significant increase in adjusted gross revenue before free bets and promotions.

The figure stood at $48.0 million, a 64.4% increase from the same period last year. That’s only a 10.1% decrease from March, which is traditionally one of the busiest months for U.S. sports betting.

After accounting for $13.6 million in free bets and promotional credits, April’s adjusted gross revenue was $34.4 million, up 108.5% year-on-year.

This all resulted in $3.4 million in sports betting tax for Arizona’s coffers. Mobile operations are taxed at a rate of 10% and retail sportsbooks at 8%.

New Licenses Ahead

In addition to April’s figures, the Arizona Department of Gaming has started taking applications for new sports betting licenses.

One license reserved for Arizona tribes and two event wagering licenses for Arizona sports franchises will be up for grabs.

The application window is a short one. It will open on August 1 for two weeks, until August 15.

Arizona currently has 17 mobile sports operators and 25 retail locations.