Arizona Sports Betting Triumphs with Record Revenues in 2023
The Arizona Department of Gaming’s December revenue report unveils a landmark year for the state’s legal sports betting industry.
With a total intake of $6.57 billion in wagers for 2023, Arizona’s sports betting landscape has not only thrived but set new benchmarks in gross revenues, culminating in a record-setting December.
A Banner Year for Arizona Sports Betting
Despite a slight dip in December’s handle from the previous month’s high, the year 2023 stands as a testament to the robust growth and vitality of sports betting in Arizona. The state’s sports betting apps and retail providers have collectively contributed to an impressive annual gross revenue of $557.4 million, marking a significant leap forward for the industry.
FanDuel, in particular, emerged as a standout performer, setting a new single-provider revenue record in December. This achievement is notable given the provider’s relatively modest win rate over the year, highlighting the competitive and dynamic nature of Arizona’s sports betting market.
December’s Highlights
Arizona sportsbooks reported a substantial handle of $693.3 million in December, a modest decrease from November’s record but a significant 21.1% increase year-over-year. This robust performance in December reflects the enduring appeal and growing enthusiasm for sports betting among Arizonans.
The state also celebrated a monthly gross revenue record of $67.7 million in December, surpassing previous highs and marking a considerable year-over-year improvement. This surge in revenue is attributed to a marginally higher hold rate by sportsbooks, underscoring the efficiency and profitability of Arizona’s sports betting operations.
The record revenue figures have had a direct and positive impact on Arizona’s state and local tax collections. December alone contributed $4.8 million to tax coffers, derived from $48.3 million in adjusted gross revenue for state operators. Over the course of 2023, Arizona sportsbooks have contributed a total of $34.8 million in taxes, significantly exceeding the previous year’s contributions and bolstering the state’s lifetime tax revenue from sports betting to $69.6 million.
Our Comment on the Article
The Arizona Department of Gaming’s December report closes a remarkable chapter for the state’s sports betting industry, setting a high bar for future performance. The consistent growth in wagering activity, coupled with record-breaking revenue and tax contributions, exemplifies the successful integration of sports betting into Arizona’s recreational and economic fabric.
As the industry continues to evolve, the foundation laid in 2023 will undoubtedly serve as a catalyst for further innovation, responsible gambling practices, and community benefits in the years to come.
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