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Arizona gross sports betting hits record $77.4 million in September

| By Robert Fletcher
Sports betting revenue in Arizona hit a record $77.4 million (£61.5 million/€73.9 million) in September, with the return of the NFL also contributing to the second-highest handle since the Grand Canyon state launched sports betting.
Arizona sports betting September

Arizona sports bettors wagered $732.1 million across online and retail channels in September. This This is 19.9% ahead of September 2023’s handle. However, it falls short of Arizona’s all-time monthly record handle of $759.8 million, set in March 2024. 

It breaks down to $719.6 million wagered online, with a further $12.5 million coming through retail outlets run by Caesars, Desert Diamond, DraftKings and FanDuel. 

After Arizona sports betting licensees paid out $655.7 million in winnings, adjusted gross receipts totalled $77.4 million. This marks a 28.8% improvement on September 2023 and surpasses the record $70.9 million in revenue reported for January 2024, when the NFL play-offs were underway. 

It also suggests a statewide hold of 10.5% for the month before promotional credits. 

The Arizona Department of Gaming reports that operators issued $39.7 million in promotional credits, at a time when competition for players is fiercest as the NFL kicks off. Once that was subtracted adjusted gross receipts came to $37.7 million. 

Arizona sports betting licensees pay an 8% tax on retail gross receipts, increasing to 10% for mobile betting. From the $447,593 in retail revenue after deductions, operators paid $35,807 in taxes to the state. This is dwarfed by a $3.2 million contribution from online operations. 

FanDuel holds off DraftKings in Arizona… just

Looking to individual operators, Flutter-owned FanDuel remains the market leader. During September FanDuel reported handle of $231.5 million and, after player winnings adjusted gross receipts totalled $27.4 million, an 11.8% hold. However this included $10.7 million in free bets.

Players wagered more through DraftKings in September, however a weaker hold of 10.1% meant gross revenue from its $263.9 million handle came to $26.6 million. It was also more generous than FanDuel, issuing $13.5 million in free bets.

BetMGM remains the closest challenger, with $86.6 million wagered through its platform in September. Thanks to a 10.4% hold its gross revenue for the month came to $9.0 million, again cut significantly by free bets of $4.0 million.

Caesars follows with $39.6 million in handle and $3.6 million in revenue.

How are the up-and-comers performing?

Meanwhile Fanatics continues to snap up market share. It generated revenue of $3.8 million from $34.9 million in handle, a 10.9% hold, although heavy promotional spend meant revenue after deductions came to just $805,721.

Bet365, on the other hand, benefitted from a strong hold of 11.9%, meaning it generated $3.4 million from $28.7 million in wagers. ESPN Bet did exceed $1 million in adjusted gross receipts before deductions in September, with players wagering $16.4 million through its app, an improvement on August 2024’s $11.6 million handle.

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