Sports betting in Arizona reaches new heights, recording an impressive $55 million in revenue for May.
In Arizona's sports betting landscape, operations hit a new high in May, raking in more than $55 million in gross revenue, surpassing the previous best of $50.2 million set in November. Operators including FanDuel, BetMGM, and DraftKings saw a combined statewide win rate almost touching 12%, which was a leap from the 10.9% set in September.
While handle dipped 10% to $461.5 million, it was the lowest handle in the Grand Canyon State since September. May's handle was, however, 79.6% higher than the $3.7 billion handle from May 2021. The state received more than $4.1 million in taxes, the most for any month of wagering in Arizona, marking the second time in nine months taxes exceeded $2 million.
The state-by-state reporting for May showed nearly $6.7 billion were wagered across the 26 states and jurisdictions where commercial sports wagering was legal and operable. This was 10.8% lower than April's $7.5 billion, but a seasonal downturn is expected due to the slower springtime sports schedule.
FanDuel leads the pack, but Caesars trails
FanDuel had a stellar month, with a gross revenue of nearly $24 million due to a remarkable 16.1% hold on $148.7 million handle. DraftKings and BetMGM, standing in the top three for handle every month post-launch, also recorded holds above 10%, with DraftKings surpassing this mark for the first time since launch and BetMGM doing so for the third time overall.
Caesars, on the other hand, suffered losses on the retail side. Bettors at Caesars' brick-and-mortar venues won nearly $89,000 more than the $940,588 in wagers accepted, marking the first monthly loss on the retail side. These losses wiped out over 50% of the revenue Caesars claimed from January through April.
Arizona's sports betting market perspectives
Starting in September 2021, Arizona's sports betting market has grown significantly, with ahandle of $7,959,647,194 and gross revenue of $707,713,945 in 2024 [2]. The current tax rates for retail sportsbooks are 8%, and for online sportsbooks, 10% [2].
Arizona has grown into a lively market for sports betting, with a variety of operators offering bets on local teams like the Arizona Cardinals and Phoenix Suns [5]. Regulatory actions have been taken against illegal gambling operations and sports event contracts from platforms like Kalshi [3]. Despite the slow start, operators finally gained momentum in 2022, as shown by the 12 states with win rates above 10% in May compared to the 16 combined occasions nationwide in the first four months of 2022.
Sports betting in Arizona reached new heights in May, with FanDuel leading the market with a gross revenue of nearly $24 million, a significant increase from their 10.9% hold in September. Despite this, Caesars saw losses on their retail side, with bettors winning nearly $89,000 more than the $940,588 in wagers accepted, marking the first monthly loss on the retail side since the market launch. This indicates a growing finance landscape in sports betting, with more operators expected to join the market and increase competition.
