Arizona Sports Betting Slide Persists For Top Brand As Promo Dollars Dry Up

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Arizona sports betting

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%.

SportsbookOnline revenuePromo spendingPercentage of revenue
BetMGM$203.1 million$113.1 million56%
Caesars$87.1 million$37.7 million43%
DraftKings$248.7 million$101.2 million41%
FanDuel$359.6 million$103.1 million29%

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.