Arizona Sports Betting: A Mixed July with Year-on-Year Gains and Month-on-Month Declines
Arizona’s sports betting landscape in July showcased a blend of progress and regression, as both handle and revenue experienced a year-on-year uptick, yet witnessed a decline compared to the previous month. This fluctuation underlines the dynamic nature of the state’s sports wagering market, which continues to evolve as more players engage in the activities offered by sportsbooks.
A Look at the Numbers
In July, Arizona reported an impressive total handle of $410.1 million (£313.7 million/€376.6 million). While this figure marks a notable increase from $323.2 million in July last year, it also reflects a significant decline from June’s handle of $454.1 million. This scenario encapsulates a broader trend where month-on-month performance can vary considerably, even as overall engagement trends upward.
Breaking down the July handle further, $404.8 million was attributed to online betting, while $5.4 million came from retail sportsbooks. Such a substantial reliance on online platforms is indicative of the growing preference for digital wagering among participants.
Revenue Insights
The Arizona Department of Gaming (ADoG) reported an adjusted gross revenue (AGR) of $41.5 million prior to promotional deductions. After factoring in $12.5 million attributed to promotional wagers, the state’s adjusted gross revenue settled at $29.0 million.
When we analyze revenue on a year-on-year basis, there’s an 8.2% increase from July last year, which showcases the continuous growth of the market. However, it is equally notable that this revenue figure fell short by 8.2% compared to June’s totals. Specifically, online betting revenue accounted for $28.7 million, while the retail sector contributed just $283,928, showcasing the dominance of online platforms in Arizona’s wagering environment.
Furthermore, sportsbooks contributed $2.9 million to state taxes for July, with digital revenue taxed at 10% and retail revenue at 8%. This results in a state-wide hold of 7.07% for the month, a figure that reflects the general profitability level for sportsbooks operating in the state.
Operator Landscape: DraftKings Stays on Top
In terms of operator performance, DraftKings maintained its solid lead in Arizona’s sports betting market. For July, DraftKings reported a total revenue of $13.4 million, stemming from $147.9 million in bets, yielding a commendable 9.06% hold. This clear frontrunner position underscores DraftKings’ strong brand presence and consumer trust within the state.
FanDuel remains the closest competitor, capturing $9.5 million in revenue from a handle of $127.6 million and achieving a 7.45% hold. The continued rivalry between these two major operators shapes the competitive landscape of Arizona’s sports betting sector.
Other operators also demonstrated promising results, with BetMGM reporting $2.2 million in revenue from $47.9 million in bets and achieving a 4.59% hold. Caesars followed with $1.5 million from a handle of $26.8 million, resulting in a 5.60% hold, while Bet365 managed to generate $1.1 million from $20.1 million in wagers, holding at 5.47%.
State Contributions and Future Outlook
The recent report also coincides with the ADOG’s release of details concerning the tribal gaming market for Q1, revealing that gaming tribes contributed a remarkable $43.9 million to the state’s benefits fund, reflecting a 3.6% increase from last year. This showcases the symbiotic relationship between tribal gaming operations and state funding, underlining the importance of responsible gaming practices and community contributions.
As Arizona navigates the ebb and flow of its sports betting market, the mixed results from July signal an ongoing journey of adaptation and growth. With various operators vying for player loyalty and revenue potential, it will be interesting to observe how the competitive landscape unfolds in the coming months, especially as the betting community continues to expand and evolve amidst changing conditions.
In conclusion, Arizona’s July performance serves as a potent reminder of the inherent volatility in sports betting, while also highlighting its upward trajectory in engagement and revenue generation on a broader scale.
