Arizona Sports Betting Revenue

With a competitive, online-friendly regulatory framework and a strong sports presence, the future is bright for legal sports betting in Arizona.

As a matter of fact, PlayAZ estimates that at maturity, AZ sports betting will produce over $3 billion in annual handle and likely well over $10 million in annual tax revenue. A number of factors like the state’s population and gambling companies’ interest in the market combine to produce this optimistic appraisal. The market also stands to benefit from external factors as well.

To understand the financials of the sports betting industry, there are a few terms it helps to be familiar with:

  • Handle: Amount of money that bettors wager
  • Adjusted gross revenue: Total money minus winnings paid out minus federal excise tax, taxed by the state
  • Hold: Percentage found by dividing gross gaming revenue by handle
  • Tax revenue: Amount of money regulators collect from sportsbook operators

Lifetime Arizona Sports Betting Revenue Totals

1743249641
Dollars of sports wagers

Lifetime AZ sports betting handle

152128046
Dollars of sports betting revenue

Lifetime AZ sports betting adjusted gross revenue

96898570
Dollars of promotional credits

Promotional credits awarded to customers

5955284
Dollars of privilege fees/taxes

Lifetime sports betting taxes

Last updated: March 8, 2022

Online SportsbookTotal HandleOnline HandleRetail HandleAdjusted Gross RevenuePromotional CreditsPrivilege Fees (Retail 8%/Mobile 10%)
Barstool$77,749,808.80$77,749,808.80$---$6,132,776.39$2,431,784.52$370,099.18
BetMGM$347,925,861.68$347,925,861.68$---$36,584,842.64$26,345,644.21$1,023,919.85
BetRivers$8,293,289.41$8,293,289.41$---$564,323.21$564,323.21$---
Caesars$256,381,001.45$248,703,291.33$7,677,710.12$21,034,302.70$15,861,024.14$508,217.92
DraftKings$543,895,305.67$543,895,305.67$---$46,946,349.38$29,869,936.92$1,707,641.25
FanDuel$430,014,209.39$415,613,673.64$14,400,535.75$36,316,510.64$14,734,004.76$2,107,574.04
Fubo$34,496.89$34,496.89$---($3,467.57)$---$---
SuperBook$171,091.94$171,091.94$---$35,972.37$34,218.39$175.40
TwinSpires$5,340,544.95$5,340,544.95$---$709,550.35$709,550.35$---
Unibet$3,248,359.11$3,248,359.11$---$171,442.95$138,932.28$25,447.01
WynnBet$70,195,672.04$70,195,672.04$---$8,331,245.21$6,209,151.62$212,209.35
TOTAL$1,743,249,641.33$1,721,171,395.46$22,078,245.87$152,128,046.01$96,898,570.40$5,955,284.09

Monthly Arizona Sports Betting Revenue Reports

Here is a look at how each month of Arizona sports betting has gone, starting with the most recent report release:

December 2021

Online SportsbookTotal HandleOnline HandleRetail HandleAdjusted Gross RevenuePromotional CreditsPrivilege Fees (Retail 8%/Mobile 10%)
Barstool$20,576,436.36$20,576,436.36$---$1,363,952.99$433,997.46$92,995.55
BetMGM$103,764,192.25$103,764,192.25$---$8,812,073.52$7,581,482.31$123,059.12
BetRivers$4,886,094.40$4,886,094.40$---$252,594.20$252,594.20$---
Caesars$75,968,434.19$73,880,771.24$2,087,662.95$5,112,616.18$4,422,453.49$65,598.14
DraftKings$146,002,339.28$146,002,339.28$---$10,983,581.87$4,305,090.59$667,849.13
FanDuel$131,094,450.87$128,456,855.87$2,637,595.00$10,737,909.37$3,533,558.36$719,594.75
Fubo$34,496.89$34,496.89$---($3,467.57)$---$---
SuperBook$171,091.94$171,091.94$---$35,972.37$34,218.39$175.40
TwinSpires$1,735,263.86$1,735,263.86$---$218,763.90$218,763.90$---
Unibet$703,114.90$703,114.90$---$33,219.14$33,219.14$---
WynnBet$14,277,818.45$14,277,818.45$---$1,049,283.95$502,989.51$54,629.44
TOTAL$499,213,733.39$494,488,475.44$4,725,257.95$38,596,499.92 $21,318,367.35$1,723,901.53

November 2021

Online SportsbookTotal HandleOnline HandleRetail HandleAdjusted Gross RevenuePromotional CreditsPrivilege Fees (Retail 8%/Mobile 10%)
Barstool$17,825,088.40$17,825,088.40$---$2,132,313.46$524,087.46$160,822.60
BetMGM$93,159,931.75$93,159,931.75$---$9,520,816.74$3,317,245.39$620,357.14
BetRivers$2,725,624.32$2,725,624.32$---$245,963.99$245,963.99$---
Caesars$66,221,568.68$63,465,223.69$2,756,344.99$7,422,418.86$3,856,736.56$355,275.92
DraftKings$148,716,688.66$148,716,688.66$---$12,521,462.92$4,576,705.72$794,475.72
FanDuel$117,969,064.93$113,298,991.43$4,670,073.50$16,013,579.80$4,708,108.38$1,119,072.57
TwinSpires$1,472,481.73$1,472,481.73$---$267,098.24$267,098.24$---
Unibet$881,937.29$881,937.29$---$93,395.85$60,885.18$3,251.07
WynnBet$17,753,301.73$17,753,301.73$---$2,053,015.81$814,087.58$123,892.82
TOTAL$466,725,687.49$459,299,269.00$7,426,418.49$50,270,065.67$18,370,918.50$3,177,147.84

October 2021

Online sportsbookTotal HandleOnline HandleRetail HandleAdjusted Gross RevenuePromotional CreditsPrivilege Fees
Barstool$26,302,770.04$26,302,770.04$---$1,803,095.85$640,285.51$116,281.03
BetMGM$92,083,455.03$92,083,455.03$---$7,639,284.13$4,834,248.26$280,503.59
BetRivers$681,570.69$681,570.69$---$65,765.02$65,765.02$---
Caesars$71,177,748.09$69,184,843.01$1,992,905.08$4,760,507.21$3,958,042.20$78,146.46
DraftKings$151,449,866.56$151,449,866.56$---$10,981,499.61$8,528,335.63$245,316.40
FanDuel$120,780,162.57$115,930,787.32$4,849,375.25$9,103,222.63$6,307,988.45$268,906.72
TwinSpires$1,643,242.96$1,643,242.96$---$195,881.65$195,881.65$---
Unibet$1,242,323.55$1,242,323.55$---$28,576.02$28,576.02$---
WynnBet$20,736,212.68$20,736,212.68$---$1,748,710.35$1,411,839.43$33,687.09
TOTAL$486,097,352.17$479,255,071.84$6,842,280.33$31,630,740.21$25,970,962.17$1,022,841.29

September 2021

Online SportsbookTotal HandleOnline HandleRetail HandleAdjusted Gross RevenuePromotional CreditsPrivilege Fees (Retail 8%/Mobile 10%)
Barstool$13,045,514.00$13,045,514.00$---$833,414.09$833,414.09$---
BetMGM$58,918,282.65$58,918,282.65$---$10,612,668.25$10,612,668.25$---
Caesars$43,013,250.49$42,172,453.39$840,797.10$3,738,760.45$3,623,791.89$9,197.40
DraftKings$97,726,411.17$97,726,411.17$---$12,459,804.98$12,459,804.98$---
FanDuel$60,170,531.02$57,927,039.02$2,243,492.00$461,798.84$184,349.57$---
TwinSpires$489,556.40$489,556.40$---$27,806.56$27,806.56$---
Unibet$420,983.37$420,983.37$---$16,251.94$16,251.94$22,195.94
WynnBet$17,428,339.18$17,428,339.18$---$3,480,235.10$3,480,235.10$---
TOTAL$291,212,868.28$288,128,579.18$3,084,289.10$31,630,740.21$31,238,322.38$31,393.43

Initial Arizona Sports Betting Revenue Projections

For starters, the Grand Canyon State set up a fairly inclusive sports betting market.

“One of the smartest things that Arizona did was to create a relatively open market, like Indiana, which will spur competition and raise the market’s ceiling,” PlayAZ analyst Eric Ramsey said. “We don’t know the entire framework yet in Arizona. But ultimately a truly competitive market benefits consumers while making the industry a reliable revenue producer for the state for years to come.”

Because of the open nature of the market, Ramsey and other analysts expected a competitive tax rate. Indeed that was the case, as regulators in Arizona finalized privilege fee rates of 8% for retail wagering and 10% for online sports betting. As a result, the state could see revenue from sports betting taxes reach eight figures annually at maturity.

Another factor that Ramsey and other analysts used as a baseline is a hold percentage for AZ sportsbooks. Assuming a 7% hold, the estimates are $3.3 billion in annual handle and up to $225 million in gross gaming revenue per year at maturity.

The conclusions were created using the sports betting market performance of Indiana, which most similarly resembles Arizona among jurisdictions with regulated wagering. Analysts then adjusted for Arizona’s population of 7.3 million, which is about a half-million more than Indiana.

Arizona also has a greater sports presence, with teams in each of the big four professional sports leagues in North America. In 2020, Indiana sportsbooks produced $1.8 billion in handle and $138.4 million in gross revenue. Consider, though, that the three-month shutdown of major sports due to COVID-19 diminished that number.

Through the first three months of 2021, Indiana sportsbooks took in nearly $1 billion in bets with almost $73 million in gross revenue. Given Arizona’s greater population and sports density, topping $3 billion in handle annually is no stretch. The state does not have to depend on its own population to get there alone, either.

AZ Sports Betting Benefits from Geographic Position

Because of its climate, Arizona regularly draws tourists throughout the year.

Many people travel to the state specifically for sporting events, such as MLB Spring Training. The sportsbooks will be in a good position to take advantage of the out-of-state interest. In fact, sports betting might act as a draw of its own.

While online sports betting is legal and live in Colorado, it’s the only neighboring state with such an open market. In Nevada, bettors who wish to wager online must register accounts in person. In New Mexico, only retail wagering is legal at a handful of tribal casinos. All sports betting remains illegal in California and Utah.

Like out-of-state gamblers, all these factors should combine to make Arizona attractive for new gambling companies. That, in turn, will only increase the value of the state’s sports betting industry. Each new license means more upfront and renewal fees for the state.

“There is no question that Arizona will be a fruitful market, but there are still a lot of moving parts that will need to be sorted before launch,” said Dustin Gouker, lead analyst at PlayUSA.com. “Based on what is known now, though, the basic framework will be appealing for sportsbook operators.”