The handle for Arizona sportsbooks in retail and online sectors dropped significantly in May, with operators seeing only over $461 million in bets. This was a 10% difference from the more than $512 million posted in April.
Players still stick to online wagering, with most bets coming from internet wagers. As much as 99% of bets were completed online.
Details of May Sports Betting Reports
The Arizona Department of Gaming recently provided the May reports showing that revenues reached well over $55 million with a hold of 12%. April’s revenues were much lower at just over $29 million and a win rate of 5.7%.
Operators can deduct free wagers, which amounted to $13.8 million in May. This created an adjusted gross revenue total of just over $41 million. Retail providers must pay an 8% tax rate, while online sportsbooks pay a higher 10% rate. In total, for May, operators paid $4.1 million in taxes. This was a new high point for the state.
In a press release, Arizona Department of Gaming director Ted Vogt commented on the results by stating the event wagering industry of the state continues to impress with over $460 million wagered in May plus over $4 million in privilege fees.
So far, the state has earned $30 million from privilege and licensing fees. Arizona is set up to earn even more as the years go by. The free bets will phase out over the next few years, with 20% of gross receipts set for the first two years and a 15% option after that. The free bets will decrease to 10% and end after a six-year period.
Individual Breakdown of Revenues and Wagers
Let’s take a look at an individual breakdown of revenue earnings and wagers placed via Arizona Sportsbooks. For retail sports betting, totals came in from Caesars and FanDuel. Caesars generated just over $940,000 in bets, while FanDuel brought in just over $3.6 million. FanDuel was the only retail operator to see a profit with just under $700,000 in earnings.
In the online sector, the top bet earners were FanDuel, DraftKings, BetMGM, and Caesars. FanDuel saw just over $148 million in wagers while DraftKings generated $141 million. BetMGM took the 3rd place spot with $84.1 million in bets, while Caesars came in 4th with $47.5 million.
Caesars ended up with the most deductions with over $5.1 million, while FanDuel was next with $4.4 million. DraftKings listed just over $2 million, and BetMGM had a modest $123,875.01.
As far as revenues are concerned, FanDuel brought in the most mobile earnings with $19.5 million. DraftKings was still in second, securing $12.1 million. BetMGM saw a much lower total of mobile earnings at $4.8 million, while Caesars generated $2.5 million.
These are the top operators in the state. While others generated a profit, no one came close to the totals of the major brands. Penn National’s Barstool Sports generated around $635k, and WynnBET brought in just a tad bit more at $665k. The remaining operators earned $30,000 or less.
FanDuel holds the sports betting market share in several states and seems tough to beat. The main competition in the industry is between FanDuel and DraftKings, with Caesars and BetMGM trying to gain ground. It will be interesting to see if another brand can take the top spot from FanDuel or if the operator will continue to reign supreme as the year continues.