BetMGM’s share of Arizona sports betting declined in August for a ninth consecutive month, largely lining up with the timeline of the brand’s pullback from promotional spending.
According to the latest state report released Friday, BetMGM reached $50.5 million in online bets, down 13% from August 2022.
It is the ninth consecutive month of year-over-year handle declines for BetMGM. Its total Arizona sports betting revenue is down 17% to begin the year, too.
BetMGM reduced its promotional spending over the first eight months of 2023. It offered $25.1 million in bet credits between January and August, down from $39.5 million last year.
AZ sports betting promotional spending
Arizona bettors took $2.3 million in credits from BetMGM in August. It made up 46.5% of the operator’s $5 million in online revenue.
Since its launch in September 2021, BetMGM’s promotional spending as a percentage of revenue is the highest among the top four sportsbooks at 56%.
| Sportsbook | Online revenue | Promo spending | Percentage of revenue |
|---|---|---|---|
| BetMGM | $203.1 million | $113.1 million | 56% |
| Caesars | $87.1 million | $37.7 million | 43% |
| DraftKings | $248.7 million | $101.2 million | 41% |
| FanDuel | $359.6 million | $103.1 million | 29% |
Bet credits offered by other brands
FanDuel dished out the most free bets between January and August with $37.7 million. That is up from $26.1 million the year before. DraftKings also increased its AZ sports betting promotional spending from last year ($22.5 million) to this year ($30.8 million.)
Online revenue is up 60% in 2023 for DraftKings and 45% for FanDuel.
For Caesars Sportsbook, online revenue is down 10.5% this year, as it reduced free bet giveaways by 40.5% compared to last year.
Arizona market leaders in August
DraftKings led all sports betting apps in Arizona with $115.5 million in online August handle. It was a nearly 13% increase over July.
FanDuel was not far behind with $115.1 million bet through its app.
FanDuel claimed the most online revenue during the month at $12.2 million before deductions. DraftKings was next with $9.4 million.
Barstool down to final few months in Arizona
Barstool produced $540,000 in online revenue in August, one of its lowest monthly totals in 2023. That includes $167,000 in promos.
Penn Entertainment is currently switching to the ESPN Bet brand, which should go live in November.
Still, handle jumped 43.1% from last August to $11 million.
August financial figures in Arizona
Between online and in-person betting, the total monthly handle was $358.9 million in August.
Arizona sportsbooks cleared $30.9 million in gross revenue before deducting $9.5 million in promotional play for bettors.
Two years of Arizona sports betting
Since the market opened in September 2021, bettors wagered $11.688 billion.
Arizona is a top 10 US sports betting market.
The Grand Canyon State has collected $56.3 million in sports betting taxes in the last 24 months.
