Arizona Surpasses Record Monthly Betting Figure
Sports betting operators in Arizona presided over an impressive handle volume in March, taking a huge $692m in bets throughout the month. March’s performance went a long way to recovering a disappointing February return, with the drop-off in NFL activity causing a major headache for sportsbooks right across the U.S.
March’s numbers represented a colossal 40% uplift on the second month of the year, with Ted Vogt, director of the Copper State’s Gaming Department suggesting that the NCAA’s March Madness tournament played a significant role in the revival. However, although players came out en masse, sports betting operator profits were substantially undermined by a strong win percentage. It’s believed that sportsbooks acquired just $37.2m in gross profits despite unprecedented betting activity. Moreover, with Arizona’s sports wagering industry still in its infancy, operators continued to offer considerable promotional incentives, further hacking away at their profitability. Indeed, over $18.6m worth of free bets were allocated during the month, leaving firms with just $18.7m in net profits.
However, at least operators can rely on a set of modest state taxation levies, as Arizona imposes just an 8% and 10% taxation charge on land-based and online sportsbooks respectively. Throughout March, state coffers were therefore boosted by a $1.8m cash injection. Furthermore, this tax implication will erode in future years, resulting contributions being completely wiped-out by 2027.
Although conventional sports betting fared better in March in comparison to the previous month, fantasy sports betting lost ground. The vertical suffered a monthly handle dip of $400k, with two operators concerningly registering no revenue whatsoever.
Arizona’s fledgling sportsbook sector looks in good shape. Between its legalization last September, and close of business 2021, player betting totals have eclipsed $1.7bn, generating $6.1m in state tax revenue. There are currently 20 licenses in-play, which are evenly distributed between tribal entities, and internal professional sports franchises.
