In February, Arizona’s sports betting industry demonstrated steady growth, with the state’s handle reaching $609 million, as reported by the Arizona Department of Gaming (ADG). This represented a 3% increase compared to January, reaffirming Arizona’s position as a burgeoning market for sports wagering.
Arizona’s Growing Sports Betting Industry:
Arizona’s sports betting handle in February amounted to $609 million, showing a 3% increase from the previous month when it stood at $591 million. Arizona now ranks as the sixth-largest sports betting market among 29 states in the US.
Notably, online sports betting continued to dominate the market, accounting for a significant 99.3% of the total handle, amounting to $604.9 million. Retail sports betting, though representing a smaller portion, reached close to $4.4 million. While the retail handle saw a year-on-year surge of 29.7%, it experienced a 25% decrease from January’s figures.
Leading Sports Betting Operators:
In the online sports betting sector, FanDuel emerged as the frontrunner, amassing a substantial $218.9 million in wagers. DraftKings secured the second position with a total of $161.5 million in wagers. FanDuel also maintained its lead in the retail sportsbook segment, recording $1.8 million in wagers, while BetMGM collected $1.2 million in bets.
Insights from ADG Director:
Jackie Johnson, the director of ADG, shared insights into the robust sports betting market in Arizona. She stated, “The second month of 2023 saw significant levels of sports betting in the state, with over $117 million more when compared to February of 2022. These figures highlight a robust event wagering market during the month, which encompassed wagering from Super Bowl LVII hosted here in Arizona.”
Key Metrics:
While the handle demonstrated strong growth, other key metrics fluctuated in February. The hold percentage decreased from 7.8% in January to 5.8%. Gross gaming revenue (GGR) reached $35.4 million, marking a 25.4% decline compared to the previous month. In-person gross revenue stood at nearly $395,000.
Arizona’s Desert Diamond Casino Expansion:
In addition to the flourishing sports betting market, the Tohono O’odham Gaming Enterprise initiated the construction of a new Desert Diamond Casino in the western part of Glendale, Arizona. The construction project, estimated to cost $450 million, is expected to span approximately 19 months.
The first phase of the project includes a 184,000-square-foot casino floor housing 900 Class III slot machines, a 12-table poker room, a retail sportsbook, and 30 table games such as blackjack, craps, roulette, and baccarat. Furthermore, dining and other amenities will be provided. A parking structure with a capacity of 3,400 spaces, along with surface parking, is also part of the development.
Arizona’s sports betting industry continues to experience healthy growth, with the February handle reaching $609 million. The market’s evolution is largely driven by strong online sports betting activity, with FanDuel and DraftKings emerging as dominant operators. Despite fluctuations in certain metrics, the sports betting landscape remains promising, further exemplified by the ongoing expansion of the Desert Diamond Casino. Arizona’s sports betting market is poised for continued development and success in the months to come.