Arizona Sportsbook Revenue Update: Near-Record Revenue
Sportsbooks Take $23.1 Million in Promotional Credits
The Arizona Department of Gaming reported a strong January for the state’s sportsbooks. Sports betting handle topped the $706 million threshold, making it the second-highest month on record. The Arizona sportsbook revenue update for January shows gross revenue was a record $69.3 million, however, sportsbooks took a larger promotional credit deduction than normal. That led to smaller net profits than were seen in December, meaning the state received less in January than in December.
Online wagering remains king in Arizona. Of the $706 million wagered in the state, $698 million came from mobile wagers. There was $6.3 million wagered at retail sportsbooks and $2 million bet through limited event operators, such as Turf Paradise horse race track.
The biggest difference between January and December from the state’s point of view was the use of promotional credits by the sportsbook operators. Many sportsbooks offered some sort of free bets for the NFL playoffs or Super Bowl, giving customers a chance to bet their picks and predictions risk-free.
The sportsbooks claimed over $23 million in promotional credits, which were deducted from revenue. While the gross revenue was $69.3 million, it dropped to $46.1 million after the deduction. That’s less than the $48.3 million net revenue the sportsbooks showed from December. However, December saw the sportsbooks claim just $17.7 million in promotional credits. After the promotional credits were applied, the State of Arizona pocketed $4.6 million in January, a slight decrease from the $4.8 million profit in January.
FanDuel Reigns Supreme
The Arizona sportsbook revenue update shows FanDuel received the highest amount in wagers for January. It was the third straight month the sportsbook led the state in betting handle. FanDuel reported $258.1 million in mobile bets and another $1.7 million in retail bets for the month. The sportsbook also took the highest promotional credit deduction, writing off more than $11 million in free wagers. Still, FanDuel paid the state just over $2 million for the month.
DraftKings was No. 2 in the betting handle for the third straight month. They have not held the top spot in the state since October. DraftKings reported $228.2 million in mobile wagers and $3.2 million in bets at retail sportsbooks. They also claimed a $6.8 million deduction for promotional credits, with people taking advantage of Super Bowl specials to bet on their expert picks.
The Arizona sportsbook revenue update shows a huge difference between the “Big 2” and the next tier of sportsbooks. BetMGM received $84.6 million in wagers, Caesars had a handle totaling $50.2 million and ESPN Bet saw $49.5 million in wagers. Hard Rock Bet was a distant sixth, with $7.1 million in wagers, its second-highest handle ever. Rush Street Interactive was next, followed by Desert Diamond Mobile. BetFred and ESPN Bet both took promotional credit deductions equal to their revenue. That allowed both to show no profit for the month of January.
March will likely be another month where the sportsbooks take good-sized promotional credit deductions. There will be some March Madness specials to entire people to wager on the NCAA Tournament against the Las Vegas odds. As long as the sportsbooks can show reductions in revenue through free bets, they’ll continue to do so.
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