Arizona Completes the Puzzle to Achieve an Unprecedented January for the Sports Betting Industry
According to the Arizona Department of Gaming, sportsbook operators in Arizona combined to bring a monthly handle of $591.2 million in January. Due to the report, the sports betting industry completed a record-setting month regarding handle, revenue, and tax receipts generated on the state level.
Arizona Puts Together the Last Pieces to the Puzzle
The Copper State is usually the last state to announce its monthly report publicly in the industry compared to the other jurisdictions in the post-PASPA era. To start the new year, the industry registered a handle of $11.5 billion in wagers, which easily surpassed the record of $10.6 billion that was set in December.
The primary reason why the industry was able to topple the short-lived record quickly was that Ohio joined the sector via universal launch. Taking into account the federal excise tax and operator losses, Arizona sportsbook operators reported gross revenue of $47.5 million, reduced to $46.2 million after deductions.
After factoring in promotional credits and free bets, $29 million in adjusted gross revenue was eligible to be taxed. Due to all the factors, the state collected $2.9 million in tax receipts.
How Significant Were the Results in January For The Industry?
It was the first month in the post-PASPA era that the nationwide gross operator revenue exceeded $1 billion. The industry picked up right where it left off in 2022. However, the average hold rate for January was 9.3 percent, which noted a slight decrease from December’s hold of 9.3 percent.
Despite the slight decrease, the number was well above the national average of 7.2 percent. The paradigm has shifted as the bookmakers have emphasized the parlay market according to recent handle reports.
As a whole, the industry brought in a total of $190.2 million in tax receipts for the month. Both New York and Ohio accounted for more than half of the haul for the month.
How Was the Market Share For the Month in Arizona?
Compared to December and the year-over-year numbers, the handle noted an increase of 3.3 percent and 4.9 percent respectively. The gross revenue figures were down 1.7 percent, and revenue slipped 14.6 percent. Regardless of the results, FanDuel was the only platform to surpass the $20 million gross revenue benchmark.
With a $195.5 million handle, the bookmaker posted a win rate of 10.8 percent, which marked the seventh consecutive month the sportsbook registered a double-digit win rate. BetMGM also posted a double-digit win rate for the seventh straight month with a 10.5 percent hold.
Surprisingly, with $9.5 million in gross revenue, the operator outpaced DraftKings’ $8.8 million in gross revenue. DraftKings spent less in terms of promotional credits in January compared to BetMGM; this is usually vice versa for most cases.
With a 14.1 percent hold on a record monthly handle of just over $20 million, Desert Diamond reached the fourth position in mobile revenue with more than $2.8 million in gross revenue. Caesars was relegated to fifth in revenue while nearly overtaking Barstool Sportsbook in terms of handle, finishing within $380,000 of PENN Entertainment.
