The Arizona Department of Gaming’s (ADG) monthly report reveals that sports betting in Arizona generated a handle of $451 million in May. Although this reflects a 2.1% decrease compared to the same period in 2022 and a notable 17.7% decline from April 2023, the state’s sports betting market remains robust with active participation from both online and retail channels.
Key Highlights:
Online Dominance: A significant portion of the betting activity occurred online, with players wagering $446.9 million through the state’s 17 mobile sports betting operators. Retail sportsbooks contributed $3.9 million to the overall handle.
Player Winnings and Revenue: Player winnings amounted to $398.2 million, resulting in $48.6 million in adjusted gross event wagering revenue before free bets. This figure represents a 12% YoY decline but a slight increase from April’s total.
Adjusted Gross Revenue Breakdown: Online betting continued to dominate the adjusted gross revenue landscape, contributing $48 million, while retail’s share reached $559,469. After accounting for $14.7 million in free bets and promotional credits, the adjusted gross revenue settled at $33.9 million.
Privilege Fees: In May, the state collected $3.4 million in privilege fees, bringing the total privilege fees collected since the commencement of legal operations to nearly $50 million.
Year-to-Date Wagering: Arizona has witnessed over $2.8 billion in wagers during the first five months of 2023, accumulating a substantial total of $10.6 billion in wagers since the launch of legal sports betting in 2021.
Market Insights:
Despite a minor year-on-year decline, Arizona’s sports betting market remains dynamic and well-established, with a considerable portion of the population engaging in online wagering. The state’s commitment to regulating sports betting has resulted in significant privilege fees and sustained growth, showcasing a resilient and thriving industry landscape.
May’s sports betting performance in Arizona, as outlined by the ADG report, reaffirms the continued popularity and economic impact of legalized sports wagering in the state. The market’s ability to attract substantial wagering volumes and contribute significant revenue underscores the success of Arizona’s regulatory framework in fostering a competitive and sustainable sports betting environment.