In a remarkable surge in sports betting, Arizona witnessed a substantial increase in wagering activities in September 2024, with bettors staking approximately $732 million across various platforms. This represents a 20% rise from the previous year, demonstrating robust growth in the state’s betting market.
Record-breaking month for Arizona betting:
According to the Arizona Department of Gaming (ADG) Event Wagering Revenue Report (pdf), this September saw the second-highest betting handle since the inception of legalized sports betting in the state, with only March 2024 recording a higher handle at $759.8 million. The significant betting volume is partly attributed to the kickoff of the NFL season, a peak period for sportsbooks.
Of the total bets placed, a staggering $719.6 million was wagered online, while retail outlets managed by notable operators such as Caesars, Desert Diamond, DraftKings, and FanDuel contributed an additional $12.5 million. This diverse betting landscape underscores the vibrancy of Arizona’s sports betting scene.
The substantial handle translated into record revenue figures, with adjusted gross receipts reaching $77.4 million, marking a 28.8% increase over the same month in the previous year. This figure surpasses the previous revenue record of $70.9 million recorded in January 2024 during the NFL playoffs. After payouts totaling $655.7 million, the state benefited significantly, collecting approximately $3.96 million in privilege fees.
Operators also engaged in competitive promotional activities, issuing $39.7 million in promotional credits to attract and retain bettors. This aggressive marketing strategy reflects the fierce competition among operators during the high-stakes NFL season. After accounting for these promotions, the adjusted gross receipts stood at $37.7 million.
Tax contributions and regulatory compliance:
As iGamingBusiness reports, the robust betting activity also bolstered state coffers through tax contributions. Arizona sports betting licensees adhere to a tax structure that imposes an 8% tax on retail gross receipts and escalates to 10% for mobile betting operations. From the total revenue, the state accrued significant tax revenues, with online operations alone contributing $3.2 million.
In the competitive sports betting market, FanDuel maintained its lead, reporting a handle of $231.5 million and adjusted gross receipts of $27.4 million despite offering $10.7 million in free bets. DraftKings, despite a higher handle of $263.9 million, reported slightly lower revenue due to a weaker hold and more generous promotional strategies.
Other key players like BetMGM and Caesars also reported solid performances, with BetMGM achieving a 10.4% hold on its $86.6 million wagered, translating to $9.0 million in gross revenue. Fanatics and Bet365 showed promising growth, with Bet365 in particular benefiting from a strong 11.9% hold, generating $3.4 million from $28.7 million in bets.
Arizona remains committed to ensuring a secure, responsible, and regulatory-compliant betting environment. This commitment is crucial as the state navigates the complexities of a growing betting market and seeks to maintain a balanced approach between economic benefits and consumer protection.
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Vanja Mitic 2024-11-27 15:29:48
