Saturday, May 25, 2024
Arizona sports betting operators see huge success in May.

Arizona sports betting operators see huge success in May.

Arizona Sportsbook Operators Enjoy Historic Month of Revenue

In May, sportsbook operators in Arizona experienced a highly successful month, reporting a hold just under 11% and gross revenue of $49.5 million, according to the state’s Department of Gaming. This marked a historic month for the industry, with 26 out of 29 states that offer sports betting posting double-digit win rates. Nevada and South Dakota were the only states that fell short of the industry standard of 7%. While Arizona’s hold in May ranked second highest in the state’s 21 months of wagering, it ranked 21st nationally.

Nationally, May saw an overall hold of 11.26%, ranking third highest in 60 months of post-PASPA sports betting. The total handle for May reached over $8.1 billion nationwide, nearly 10 times the amount wagered in September 2018 and exceeding the amount bet in September 2022.

This surge in revenue indicates the significant expansion of sports wagering across the United States. Total operator gross revenue for May reached $916.6 million, which is nearly $100 million more than the handle recorded in September 2018 when only five states had live betting.

Arizona’s success adds to an exceptional 12-month period for operators, with a nationwide hold of almost 9.4% and $101.8 billion wagered from July 2022 through June 2023, pending the release of June revenue reports from Arizona and Illinois.

Arizona’s Impressive Year-to-Date Figures

While revenue numbers for May 2023 were down compared to May 2022, Arizona’s year-to-date figures show significant growth. Gross revenue has increased by almost 26% to $235 million, and adjusted gross revenue (AGR) has surged by 46% to $150.5 million. The promotional spend for the month of May was up by 7.9% compared to April, but the year-to-date outlay in credits among all operators decreased by 4.8% compared to the same period in 2022.

Arizona has experienced a boost in tax receipts due to the increased AGR, with close to $15 million collected in 2023. The state has accumulated $4.7 million more in tax revenue from sports wagering compared to the first five months of 2022, nearing a total of $50 million in receipts since its launch in September 2021.

Bettors in Arizona have placed over $2.8 billion worth of wagers this year, representing a 4.1% increase compared to 2022. Arizona ranks seventh in national handle for 2023, a position that will likely be strengthened once June’s wagering totals are added.

Mobile Operators Drive Revenue

In Arizona, FanDuel led all mobile operators in gross revenue, generating $21.2 million with a hold of nearly 13.1%. This marks the third consecutive month and fourth time this year that FanDuel has exceeded $21 million in gross revenue and the eighth time it has surpassed $20 million overall in Arizona. FanDuel also achieved over $1 billion in handle and $100 million in gross revenue in the state for the year, although its win rate for 2023 is slightly lower than 2022 at 9.7%.

DraftKings set a company record for gross revenue in Arizona for the second time in three months, earning over $15.2 million. This surpasses the previous record set in March by approximately $150,000. DraftKings achieved a hold of 11.7% in May, its third double-digit hold in Arizona, second only to the 12.8% achieved in the first month of operations.

BetMGM had its best win rate of the year at 11%, resulting in gross revenue of $7.4 million from $66.8 million in accepted bets. BetMGM has maintained a double-digit hold for three consecutive months and ranked third in promotional spend at $3.3 million.

FanDuel, DraftKings, BetMGM, and Caesars Sportsbook accounted for over 95% of the promotional outlay among operators in May. The remaining mobile books combined to offer $667,000 in credits.

Caesars Sportsbook achieved $3.6 million in gross revenue with an 8% hold on a handle of $45.5 million, ranking fourth in both categories. Barstool Sportsbook held onto the fifth spot for handle, accepting $12 million in wagers compared to Desert Diamond’s $10.2 million. However, Desert Diamond suffered its second loss in the last three months, with bettors winning $177,000.

Arizona’s other mobile book, Sahara Bets, had an exceptional month, boasting a 27% hold on a handle of $308,000 and achieving the highest monthly gross revenue since its launch with $83,000. In all of 2022, Sahara Bets had won just over $93,000.

BetRivers paid state taxes on adjusted gross revenue for the first time in 2023, remitting $14,000 after achieving an AGR of $140,000. In May, BetRivers achieved an all-time high of $389,000 in gross revenue.

Brick-and-Mortar Operators’ Performance

Brick-and-mortar operators in Arizona achieved a strong hold of 13.8% on a total handle of $3.9 million. However, the sector would have performed even better if not for BetMGM’s loss. The public gained nearly $28,000 on $611,000 wagered, marking the first monthly win for BetMGM since it launched in-person betting last September.

Caesars, which experienced monthly losses in January and April of this year, achieved an all-time high in monthly retail revenue in Arizona with $191,000, thanks to a 21.7% hold. FanDuel also had its best month of the year with $377,000 in revenue from a handle of $2.4 million, resulting in a win rate of 15.6%.

Source

About Jonty Jackson

Welcome to the exciting world of sports with Jonty Jackson, who with his passion for all things sports-related, delivers engaging and informative posts that keep his readers up-to-date on the latest news, trends, and developments in the world of games and sports. Whether you're a fan of e-gaming, a lover of outdoor adventures, or a die-hard sports enthusiast, Jonty's posts are the perfect place to find the latest updates and insights on your favorite games and sports. Follow him and join the conversation today!

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