Arizona Sports Betting Handle Rises While Revenue Falls In February

The February 2023 sports betting figures for Arizona have been released. Although the state lags slightly behind others in terms of reporting, the data from AZ for February reveals some intriguing patterns.

Notably, there was an increase of $117 million in the February handle from February 2022 to February 2023. The handle in February 2023 was $609 million, which is a 3% increase from January 2023.

The fluctuations of Arizona

The state’s handle may have increased in February, but growth wasn’t its only narrative.

Operators revealed that sports betting revenue was $46.2 million in January 2023. However, there was a substantial drop to $34 million in February 2023. Out of approximately $609 million handle in Arizona, players received $573.9 million as winnings.

Inference that can be made is that there was a significant amount of betting by players in February, especially during the Super Bowl. The earnings are inclusive of the winnings that were given back to the players. This might suggest that Arizona gamblers had a generally profitable betting month. The fact that the Super Bowl was held in Arizona could explain the surge in betting activities. It’s possible that visiting fans who came from areas where betting is prohibited also placed bets.

The decline in sports betting revenue is difficult to attribute to a specific cause, but the lack of other major sports events around the Super Bowl could be one potential explanation.

Several fortunate operators

Only a few operators in Arizona managed to increase their profits in February over January, including FanDuel and Betway.

FanDuel Arizona recorded a 12% increase from January 2023 in mobile and online wagers, totaling $218.9 million.

Meanwhile, DraftKings, FanDuel’s rival, saw its handle drop to 161.5 million, losing some momentum to its primary competitor.

Retail operators also witnessed strong performances. BetMGM’s retail sportsbook attracted nearly $1.3 million in handle, and FanDuel’s gathered $1.8 million.

Bars and restaurants experience a downturn

Arizona permits restricted betting activities in specific locations like bars and restaurants. The ten operators in these locations recorded $762,505 in bets, a decrease from January’s $1 million. The tax rate of 8% translated to a contribution of $6,673, significantly lower than the $1.6 million contributed by online and commercial retail operators.

Shake-ups in Sports Betting

The sportsbook industry in Arizona recently experienced a loss as Fubo withdrew its operations. This action has left a license available, though it’s still uncertain who will secure it.

Initially, PointsBet was considered a contender, but its US assets are now being acquired by Fanatics. It’s likely that we’ll see the completion of this acquisition before PointsBet (or its new identity under Fanatics) enters the Arizona market.

Who enters the Arizona sports betting market will be revealed in time.