The Arizona Department of Gaming has compiled the sports betting numbers from September and October and released a full report. Experts predicted that Arizona would turn into a massive sports betting market, and that is exactly what happened.
The total sports betting handle for the first month was $291.2 million, and that wasn’t even a full month’s worth of betting. October was much larger as Arizona closed in on a sports betting handle of nearly $500 million.
Launching right before the start of the 2021 season was planned, and that plan worked to perfection. The report doesn’t list the sports that brought in the most action, but football had to be at the top of the list.
Tennessee previously held the record for the sports betting handle total in the first month of operation. That record was set at just $131.4 million, allowing Arizona to fly right past it.
The October sports betting handle total put Arizona in seventh place on the list of largest sports betting markets. Colorado was slightly ahead, and these two states should be battling it out for customers in that part of the country.
Rules Benefitting Sportsbooks
The gross sports betting revenue was impressive for Arizona as well, but that didn’t lead to a massive amount of tax revenue. There are some favorable rules for operators when reporting revenue that has had a major impact on the state.
The gross revenue was $31.6 million for the month of September, and it was $36.3 million for the month of October. Sportsbooks were allowed to deduct promotional money from the total that was reported, though, and the state failed to generate even $1.5 million in tax dollars.
This promotional total is going to go down over the next few months as sportsbooks won’t have to offer these bonuses as a way to get business. As long as the revenue continues to climb, then the tax revenue will increase as well.
Can Anyone Challenge DraftKings?
DraftKings has been the clear leader in terms of handle and revenue each of the first two months, and there hasn’t really been a legitimate challenger. BetMGM and FanDuel have battled it out for the second spot, but it might take some time before there is a change at the top.
The total handle for DraftKings in September was $97.7 million, and that total jumped up to more than $151 million in October. The combined gross revenue for DraftKings was more than $23.5 million, allowing it to stake its claim as the top option in the state.
After having the third-highest handle for September, FanDuel Sportsbook posted a handle of $115.9 million for the month of October.
More Sportsbooks Coming
Even though Arizona is off to a massive start, things are only going to get better. There were eight sportsbooks available in September, and that number has since grown all the way up to 11.
The Arizona Department of Gaming has already approved seven other operators to launch, and those sites should go live at some point in early 2022. It won’t take long for Arizona to become a top-five sports betting market at this rate.
There are clearly some top online sportsbooks already available in Arizona, and that will make it hard for these new options to attract customers. Partnering with professional sports teams and major casinos will allow these sites to gain some attention.