Arizona Sports Betting Closes First Year With Big Second September

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Arizona sports betting

Arizona sports betting finished its first year on a high note. 

Arizona sportsbooks handled nearly $560 million in September, according to an Arizona Department of Gaming report released Thursday. The wagering total is an 84.7% year-over-year increase compared to September 2021, the month sports betting in Arizona launched.

“September was clearly a strong month for Arizona sports betting, with the state seeing over $245 million more in wagers when compared to the same month of 2021,” ADG Director Ted Vogt said in a release. “I am excited to see how the industry progresses through the winter months, which generally has the most popular sports for wagering in the United States.”

First year of Arizona sports betting

Arizona operators handled nearly $6 billion in wagers during its first full year of sports betting. That includes the record $691 million taken in March 2022.

In the first year, AZ sports betting operators generated just under $480 million in sports betting revenue. That includes the $55.2 million in gross revenue generated in September.

Arizona has collected more than $24 million in taxes from sports betting in its first year.

How first year of AZ sports betting compares

Wyoming also launched statewide online sports betting in September 2021. The Cowboy State saw sportsbooks take more than $135 million in wagers during its first year. 

In Michigan, which launched statewide online sports betting in January 2021, had a full-year online handle of more than $3.7 million. Virginia sports betting launched in late January 2021 and also turned an online handle of approximately $3.7 million in its first year.

Arizona, with a population of approximately 7.3 million, is slightly smaller than both Michigan and Virginia, 10.1 million and 8.6 million, respectively.

DraftKings king in Arizona sports betting

DraftKings took $215.6 million in bets during September, taking the top spot ahead of FanDuel’s $144.8 million handle. FanDuel, however, turned in a better revenue total, $19.3 million compared to DraftKings’ $13.2 million

No other operator cleared $100 million in September wagers, with BetMGM taking $80.4 million. Caesars was the only other sportsbook to take more than $20 million, hitting $46.1 million.

Big three in the first year

DraftKings also led the full-year online handle total in Arizona, taking $1.9 billion. FanDuel took $1.6 billion in online bets, while BetMGM was the only other to surpass $1 billion, taking $1.1 billion.

FanDuel led the revenue race, generating $152.4 million, a 9.3% hold. DraftKings held 6.3% for $119.5 million, while BetMGM had a 10.2% hold for $115.7 million.

Caesars handled $741.7 million in wagers, holding 11% for $51.4 million in revenue, far above No. 5 in the state, Barstool Sportsbook, which handled $208.2 million in bets.

What happens to shuttered books?

The Arizona sports betting market took off on Sept. 9, 2021 with 18 online operators lined up to launch. Multiple operators did not launch until several months into 2022.

Multiple operators have pulled out of online sports betting or the industry entirely, including TwinSpires and Fubo Sportsbook.

A spokesperson with the ADG told LSR in October that the agency continues to work with those sportsbooks to wind down their operations and find viable replacements for their respective online licenses.