One year in, legal sports betting is off to a very promising start in Arizona – with the prospect of an even bigger second year of Arizona sports betting ahead.
Sept. 9 marked the one-year anniversary of legal sport betting’s launch in the Grand Canyon State, which according to regulators surpassed $5 billion in handle over the first 12 months. Arizona’s first year wrapped up in August with more than $361 million wagered, which ranked fifth nationally among states with legal sports betting according to the Arizona Department of Gaming.
How It Happened
Arizona has 18 mobile sports betting operators and additionally 25 retail wagering facilities. That is a strong legal sports betting infrastructure finalized in five months after Gov. Doug Ducey signed sports betting into law in April 2021. The first-year numbers of course do not take into account the 2022 NFL season, which began after the one-year anniversary, and will conclude with Super Bowl in metro Phoenix that’s almost certain to bring a massive sports betting windfall.
“Sports betting gives another opportunity for tourists to visit our state, particularly for major sporting events,” Arizona Department of Gaming Ted Vogt said in a statement. “For example, ADG is preparing for Super Bowl LVII next February, which will be the first time the event is held in a state with legal sports betting.”
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March Madness Fueled State’s Best Month
The $361 million August handle was Arizona’s third-lowest monthly amount since launch. Of course, a dearth of major sports events that month was a driver. Over the past 12 months, according to archived reports available through the Arizona Department of Gaming, the state peaked in an NCAA hoop-fueled March 2022, when Arizona state’s sports betting operators saw more than $690 million in handle. That resulted in $37 million in overall revenue and $1.8 million in state taxes.
Of course, Mobile sports betting accounted for the vast majority of legal wagering in Arizona. That is the case in most states where the practice is legal. Over the first year of legal sports betting in the Grand Canyon State, mobile wagering was dominated by four major industry players – DraftKings, FanDuel, BetMGM and Caesars Sportsbook, all of which have been in Arizona since launch day. They combined to take in $4.8 billion in overall mobile handle.
Mobile Handle For All Arizona Operators
| 🥇 DraftKings $1.68 billion | Betfred $11.46 million |
| FanDuel $1.49 billion | Hard Rock $8.77 million |
| BetMGM $1.08 billion | Unibet $7.96 million |
| Caesars $695.99 million | Desert Diamond $4.85 million |
| Barstool $193.63 million | * Fubo Sportsbook $4.29 million |
| WynnBet $132.32 million | Bally’s $1.19 million |
| BetRivers $47.48 million | Digital Gaming $734,766 |
| SuperBook Sports $14.6 million | Golden Nugget $572,182 |
| TwinSpires $10.85 million | SaharaBets $458,171 |
* Fubo Sportsbook stopped operating in Arizona in October 2022.
DraftKings recorded the single best month for a mobile sports book in Arizona, generating $230.2 million in handle in March. The top wagering months for the three other major mobile operators also were tied to March Madness. That was $184.5 million for FanDuel, $133.7 million for BetMGM and $95.3 million for Caesars.
Sports betting In Arizona Betting In Line With Market Size
Despite having legal sports betting for just over 12 months, Arizona is already highly competitive with other states of similar populations with more mature sports betting markets. The $361 million in August handle generated by Arizona (population 7.3 million) compared with $284 million in August handle in Virginia (population 8.7 million), $205 million in August handle in Tennessee (population 7 million) and, lastly, $382 million in August handle in Indiana (population 6.8 million).
Arizona reached the $5 billion handle mark faster than any state save New York (of course). The Empire State surged to the top of U.S. markets when legal mobile betting launched there in January.
Arizona has an edge in that it allows both mobile and retail sports betting. Many states surprisingly only allow one. Prominent retail sports betting outlets in Arizona include a Caesars sportsbook at Chase Field (home of Major League Baseball’s Arizona Diamondbacks) and a FanDuel sportsbook at Footprint Center (home of the NBA’s Phoenix Suns). There also is a BetMGM sportsbook at State Farm Stadium (home to the NFL’s Arizona Cardinals and Super Bowl LVII).
Additionally, retail locations in Arizona combined to generate $3.3 million in handle in March. That in fact was the state’s top betting month over the past year. Arizona has collected more than $21 million in taxes over the first year, according to the gaming commission.