It’s that time again! The Department of Gaming has provided recent figures regarding the Arizona sports betting market. For August, the state saw $361 million in wagers, with a win rate of 10%. The monthly totals increased from July when only $288.2 million in wagers were generated.
Once winners were paid their dues and taxes paid, operators saw earnings of $36.3 million. This was a nice increase in the win rate from July when only 7.9% was produced.
Details of Arizona Sports Betting August Earnings
From the amount generated from sports bets, the total earned by operators was just over $27 million. The state removes money from free bets and promotions from its figures. Operators can offer members freebies and incentives as a perk for betting.
The state has an 8% tax rate for retail sports betting and a 10% set for online wagering. In total, the industry paid over $2.7 million in taxes for August operations. The Department of Gaming was happy to see the solid figures for August after a full year of service.
So far, the industry has been productive, with many top-rated providers offering services to players in the state. The industry started quickly once the greenlight was given, providing sports fans with online and retail options for wagering.
A Full Year of Sports Betting
So far, the Arizona sports betting market has been operational for a full year. The industry officially launched on September 9, 2021, and so far, it has taken in over $5 billion in bets. We don’t have the full figures yet because the regulators in the state do not provide revenue reports promptly. The state is pretty far behind with reporting when compared to other states. Most regulators provide monthly reports a couple of weeks after the last month ends.
Of that amount, the state has earned over $21 million from fees. The state seems to be off to a great start and will hopefully only grow from here. Within the first month of operation, eight providers had received licensing and offered services.
DraftKings was the top provider holding the bulk of the market share, followed by FanDuel and BetMGM. Caesars also offers services in the state, plus WynnBET, Barstool, TwinSpires, and Unibet. Each was there from the beginning and continues to offer sports betting today.
Market Share Today
Now, after a year of operation, the market share is seemingly the same. The state now has 18 mobile providers and ten retail operators with limited event licensing. DraftKings and FanDuel are still top dogs, with DraftKings holding 36% of the market while FanDuel is close to 30%.
These two providers continue to be the best in the business and tough competition for smaller brands. BetMGM has the third largest market share at 16%, but it doesn’t compare to the hold that the two other brands have.
Pulling up the rear includes Caesars, WynnBET, Barstool, BetRivers, and Hard Rock. Any other mobile operators in the industry hold less than a 1% market share. Most of the sports betting in the state takes place online. Players visit physical sportsbooks but not near as many bets are placed onsite.
At the beginning of Arizona sports betting services, providers offered tons of promotional deals and credits. Spending came in at over $31 million in the first month. For August 2022, promotional spending decreased to just over $8 million.
It will be interesting to see how the industry fares in the coming months as 2022 ends. Hopefully, the upward trend will continue, and operators will see an increase in profits each month and handle.