Arizona Wagering Handle Springs up While Earnings Falls In January

Arizona wagering numbers for February 2023 are in. The state is slightly behind other markets in terms of reporting, but Arizona’s February data reveals a few interesting trends.

Specifically, the February handle increased by $117 million compared to January 2022. The January 2023 handle was $609 million, representing a 3% growth from January 2023.

Arizona’s pros and cons

Handle may have increased, but the full story of the state in February wasn’t just about growth. In January 2023, operators reported $46.2 million in sports betting revenue. However, February 2023 saw a significant dip to $34 million. Out of Arizona’s total handle of approximately $609 million, $573.9 million was paid back to players in winnings.

One conclusion that can be drawn is that players wagered a lot in January, especially during the Super Bowl. Revenue represents the profits retained by the operators after paying out winnings to players. This could indicate that Arizona bettors had a generally strong month of betting. Additionally, Arizona hosted the Super Bowl, which could explain the high jump in handle. Visiting fans may have come from illegal markets and placed bets.

It’s challenging to pinpoint a specific reason for the decrease in sports betting revenue, but another possible explanation could be the absence of other major sports events surrounding the Super Bowl.

A few blessed operators

Among Arizona’s many operators, only a few managed to increase their profits in January compared to December: FanDuel and Betway. FanDuel Arizona recorded $218.9 million in mobile and online bets, showing a 12% increase from January 2023. On the other hand, FanDuel’s competitor DraftKings saw a decline to $161.5 million in handle, losing ground to its fierce competitor.

Retail operators also had some solid performances. BetMGM’s retail sportsbook generated nearly $1.3 million in handle, while FanDuel’s retail sportsbook reached $1.8 million.

Restaurants together with bars drop

Arizona also permits limited wagering operators in specific locations, such as bars and restaurants. These ten operators accumulated $762,505 in bets, which is a decrease from January’s $1 million. With an 8% tax rate, their contribution amounted to $6,673, which is significantly lower compared to the larger contribution of $1.6 million from online and commercial retail operators.

Sports betting shake-ups

Arizona’s sportsbook market recently experienced the departure of Fubo, leaving a vacant license. Currently, it is unclear which operator will fill that void. PointsBet was initially considered a contender, but their US operations are being acquired by Fanatics. It is likely that we will see the completion of that purchase before PointsBet (or whatever it may be called under Fanatics) enters the Arizona market. Only time will reveal which operator will join the Arizona sports betting market.