In June 2024, Arizona’s sports betting market displayed a blend of growth and contraction, reflecting broader industry trends and seasonal shifts.
Handle Overview and Trends
Arizona’s sports betting handle for June 2024 reached $454 million, marking a 13.5% increase from the same month in the previous year. This growth underscores the state’s robust sports betting sector. However, it is notable that this figure represents a significant 20% decrease from May 2024’s handle of $568 million. This decline suggests that seasonal variations or changes in betting patterns may influence monthly figures, as is common in the sports betting industry.
Revenue Insights: Gross and Adjusted
In terms of revenue, the Gross Gaming Revenue (GGR) for June stood at $46.2 million. This figure reflects the total earnings before any deductions by the operators. After accounting for $14.6 million in write-offs, the Adjusted Gross Revenue (AGR) was calculated at $31.6 million. The AGR is crucial as it represents the revenue available after operational costs and other deductions. From this AGR, the state received $3.16 million in tax revenue, highlighting the financial contributions of the sports betting sector to state coffers.
Online Versus Retail Sportsbooks
The distinction between online and retail sportsbooks is evident in the June figures. Online platforms dominated the market, handling $449.7 million in bets and generating $31.3 million in AGR. This substantial dominance underscores the growing preference for digital betting, driven by convenience and extensive betting options.
In contrast, retail sportsbooks saw significantly lower activity, with a handle of just $4.4 million. This disparity illustrates the shift towards online betting, which continues to capture the majority of market share in Arizona.
Major Operators’ Market Performance
The performance of leading sports betting operators reveals a competitive landscape. DraftKings led the market with an online handle of $153.9 million, supplemented by $1.6 million from its retail operations. FanDuel followed closely with $149 million in online bets, demonstrating its strong position in the market. BetMGM, with an online handle of $51.7 million, and Caesars, with $28 million, also contributed significantly, though they trailed behind the top two operators.
Regulatory Developments and Market Expansion
Recent regulatory developments by the Arizona Department of Gaming (ADG) have introduced new players into the market. The ADG awarded two new tribal-tethered event wagering licenses to Sporttrade and Plannatech. Sporttrade will partner with the Quechan Indian Tribe of the Fort Yuma Indian Reservation, while Plannatech will collaborate with the San Carlos Apache Tribal Gaming Enterprise. These new licenses, granted between July 8 and July 19, 2024, are expected to diversify and expand the state’s sports betting options, potentially increasing competition and consumer choice.
June 2024 highlighted both growth and challenges in Arizona’s sports betting market. The month saw a significant year-over-year increase in handle, despite a decline from the previous month. Online platforms continue to lead the market, with major operators like DraftKings and FanDuel capturing substantial shares. The recent introduction of new licenses indicates a promising future for market expansion and increased competition. As the industry continues to evolve, these trends will play a crucial role in shaping Arizona’s sports betting landscape.