Arizona Sports Betting Market Ranks Fifth-Best in June
The Arizona Department of Gaming's June revenue report was released late last week and revealed mostly good news for the legal sports betting scene there and online betting sites in the state. Despite a streak of nine straight $400-million months ending in June, Arizona sports betting apps and retail providers still combined to produce the fifth-best handle of any legal sports betting jurisdiction in the country.
There was an overall but expected drop in sports betting activity compared to May at the best sportsbooks. But Arizona's June report did reveal a healthy year-over-year jump in handle, revenues, and taxes contributed from the state's providers.
June's numbers speak to the strength of the legal sports betting scene in the Grand Canyon State.
Handle drops $58 million from May
Arizona sports bettors spent $393,198,858 with their retail and mobile sportsbooks in June. That represents a $58 million, or 12% month-over-month drop from May's $451.7 million. However, it's a 23.3% year-over-year increase from the $318,774,198 in statewide wagering activity from June 2022.
With the nearly $392.2 million June handle, Arizona became just the ninth state in the bustling U.S. legal sports betting market to surpass $11 billion in total wagers since the 2018 Supreme Court decision to overturn its blanket ban on sports wagers.
Just over $3.2 billion was wagered on sports in Arizona through the first six months of 2023.
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Revenues tumble month-over month
Revenues for Arizona's legal sports betting providers and the best sports betting apps significantly dropped month-over-month. Two factors played a role in the decline: The dip in overall wagering activity, and a poor hold rate for Arizona sports betting apps and the state's retail providers.
$28,331,608 in gross gaming revenue was reported in June for Grand Canyon State providers off of a 7.2% hold. It's a healthy $21-million slide from the nearly $49.6 million posted in May when sportsbooks were able to hold 10.9%.
However, the June 2023 sportsbook gross gaming revenues for Arizona providers is more than double that of June 2022 when Arizona sports betting apps and retail providers were able to hold just 4%. GGR for June 2022 was just $12.6 million, which represents its lowest monthly win rate to date.
$16.4 million in adjusted revenues led to $1.6 million in tax contributions from sportsbooks in the Grand Canyon State during June. Tax contributions were more than double in May when $3.376 million flowed to needy state and local tax coffers, but up substantially year-over-year from the $766.831 in June 2022.
FanDuel top dog
FanDuel Arizona was the most popular Arizona sports betting app in June. It accounted for $146 million of the state's overall $393.2 million handle. FanDuel also led the way in terms of sportsbook revenues with $12 million in GGR.
DraftKings Arizona was the second-most popular sportsbook in June with an $11.3 million handle. But the book generated just $7.1 million in revenue thanks to an underwhelming 6.4% hold.
BetMGM Arizona was third with $55.8 million in reported bets during June and $4.9 million in revenues. Caesars Arizona was next with a $40-million handle, and Barstool Sportsbook, which is primed to become ESPN Bet, capped off the top five with $11.3 million in bets.
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Arizona puts a lid on June's productivity nationwide
Arizona's monthly sports betting numbers generally mark the last of the monthly reports in the bustling U.S. legal sports betting scene. The report gives us a sense of just how the overall American industry fared in a given month.
The entirety of the U.S. legal sports betting industry reeled in $6.6 million during June. Gross revenues came in just under $550 million, thanks to an average national hold of 8.3%.
June's national handle figures are 28% higher than the same period in 2022, thanks in part to the addition of Ohio and Massachusetts. Nationwide revenues are up 72.7% year-over-year.
