Arizona recently witnessed the closure of two sportsbooks: SaharaBets and Superbook Sports. FUBO, Unibet, TwinSpires, and WynnBet have also left the market in the past year, or so. However, these operators ranked toward the bottom of a highly competitive market. The combined handle for Sahara and Superbook was less than $2 million, while other operators exceeded $5 million.
That’s part of the reason state officials aren’t panicking over the departures, and are preparing to add much more competition in the market.
Based on the latest revenue totals (May 2024), here’s how the sportsbooks in Arizona, that generated at least $5 million, rank.
- FanDuel: Handled $192.7 million, with revenue of $21.3 million.
- DraftKings: Managed $188.3 million in handle, resulting in $13.5 million in revenue.
- BetMGM: Had a handle of $63.5 million, generating $4.1 million in revenue.
- Caesars: Handled $35.2 million, with revenue of $1.8 million.
- bet365: Managed $25.5 million in handle, resulting in $859,000 in revenue.
- ESPN BET: Had a handle of $18.2 million, generating $734,000 in revenue.
- Fanatics: Handled $16.7 million, but revenue was zero.
- BetRivers: Had a handle of $6.1 million, resulting in $287,000 in revenue.
The Arizona Department of Gaming report also shows sportsbooks in The Grand Canyon State took in nearly $569 million in wagers in May, which was 13% less than in April. But don’t be fooled by the drop in bets. After accounting for the more than $17 million in free bets, the operators reported $61 million in adjusted revenue, with a hold of nearly 11%—1% higher than in April.
Arizona Sports Betting Revenue Fairly Consistent
When you look at the numbers across the entire year, there is a fair amount of consistency in Arizona. Here’s the breakdown from Bet Arizona:
| Month | Handle | Revenue | Hold | Taxes |
|---|---|---|---|---|
| May 2024 | $563,207,423 | $43,162,962 | 7.66% | $4,307,143 |
| April 2024 | $649,911,130 | $43,008,331 | 6.62% | $4,300,833 |
| March 2024 | $752,391,015 | $37,195,807 | 4.94% | $3,719,581 |
| February 2024 | $631,248,713 | $27,604,635 | 4.37% | $2,760,464 |
| January 2024 | $698,008,909 | $45,801,440 | 6.56% | $4,580,144 |
The revenue refers to the amount that operators have left after they pay out winning bets. From there, bookmakers pay a 10% tax to the state on the adjusted gross revenue.
Arizona’s tax revenue from sports betting contributes to the state’s general fund, supporting essential services like education and infrastructure projects.
More Competition on the Way for Arizona Sportsbooks
Arizona, in a market that isn’t slowing down, will expand its already extensive list of sportsbooks. Recently, the state ceased accepting applications for event wagering licenses.
In 2021, when Arizona initially legalized sports betting, they fully utilized the allocation of 20 available licenses. However, subsequent changes within the industry and among operators have resulted in some of those licenses becoming available again, while others have been reassigned.
The Arizona Department of Gaming considered applications for at least one event wagering license reserved for federally recognized Native American tribes and at least one event wagering license reserved for Arizona sports franchises. Arizona currently has 15 active sportsbooks but hopes to get back to the maximum of 20 licenses allowed under state guidelines.
We’ll keep you posted.
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