The sports revenue reports from the Arizona Department of Gaming for November are in and Arizona cleared $1.2 billion in total event wagering handle in less than three months after going live.
Arizona sports betting’s November handle of $466.7 million fell short of the state’s October number of $486 million. Online sports betting in the state debuted on the first day of the 2021 NFL season, Sept. 9. Arizona’s $291 million in wagers in September marked the best opening by a state since legal sports betting expanded in the U.S. in 2018.
“November’s report shows that sports betting is still cyclical in nature, with fits and starts along the way. November's slight month-over-month decrease is not a sign of a slowing market, but rather an indication of room for growth," said Christopher Boan, analyst for BetArizona.com. "We can safely anticipate Arizona’s handle will increase in the new year, as we continue to see new operators enter the marketplace and we enter into a season of major excitement for sports betting. Bettor enthusiasm will ramp up surrounding key sporting events such as football playoffs, the Super Bowl, basketball season ramps up and we head into March Madness and then NBA finals.”
Arizona’s November handle was again seventh best in the nation, behind New Jersey ($1.25 billion), Nevada ($1.08 billion), Illinois ($779.8 million), Pennsylvania ($761 million), Michigan ($500.5 million) and Colorado ($475.4 million).
The state took in more than three times the amount of taxes in November ($3.1 million) as it did in September and October combined. Operators gave out $18.3 million in free bets and promotional credits in November compared to $31 million in September. Operators get a tax break on the free bets and promotional credits they offer during the first five years of sports betting in Arizona. That tax break is up to 20 percent of their gross wagers for the first two years.
DraftKings and FanDuel continue to be the market leaders in handle, the only two operators in Arizona to surpass $100 million for the month. DraftKings took in $148 million in November, while FanDuel had $113 million in wagers.
“Though handle was down, revenue was up, meaning a solid win for the state (of Arizona), which saw a $3 million contribution to state coffers,” said Boan.
You can find the full BetArizona.com analysis here: https://www.betarizona.com/news/what-we-learned-from-arizona-betting-apps-november-revenue-report.
