Arizona Sports Betting Handle Rises While Revenue Falls In February

Arizona sports betting numbers for February 2023 are in. The state is a tad behind other markets in reporting, but AZ’s February data shows us a few interesting trends.

Most notably, February handle increased by $117 million from February 2022. February 2023 handle was $609 million, a 3% bump from January 2023.

Arizona’s ups and downs

Handle may have gone up, but growth wasn’t the whole story for the state in February.

In January 2023, operators reported $46.2 million in sports betting revenue. February 2023 saw a significant dip to $34 million. Of Arizona’s roughly $609 million in handle, $573.9 million was paid back to players in winnings.

One conclusion to draw: players wagered a lot in February, particularly around the Super Bowl. Revenue accounts for the winnings paid back to players. It could mean Arizona bettors had a generally successful month of betting. Arizona also hosted the Super Bowl, which explains the big jump in handle. Visiting fans may have come from prohibited markets and placed bets.

It’s hard to pin down a particular reason for the sports betting revenue decrease, but one other possible explanation is the absence of other major sports surrounding the Super Bowl.

A few lucky operators

Of Arizona’s many operators, only a few managed to increase their profits in February over January: FanDuel and Betway.

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

Meanwhile, FanDuel’s rival DraftKings fell to 161.5 million in handle, losing some ground to its fiercest competitor.

Retail operators saw some solid performances as well. BetMGM’s retail sportsbook drew in nearly $1.3 million in handle, while FanDuel’s took in $1.8 million.

Restaurants and bars dip

Arizona also allows limited wagering operators in certain locations, such as bars and restaurants. These ten operators took $762,505 in wagers, down from January’s $1 million. The 8% tax rate meant a $6,673 contribution compared to the much higher $1.6 million from online and commercial retail operators.

Sports betting shake-ups

Arizona’s sportsbook industry recently lost an operator with the withdrawal of Fubo. That leaves a license up for grabs, but as of yet, it’s unclear who will snag it.

PointsBet was initially on the list of contenders, but the company’s US assets are being purchased by Fanatics. Chances are we’ll see the completion of that purchase before PointsBet (or whatever it becomes under Fanatics) comes to Arizona.

Time will tell who comes to the Arizona sports betting market.