Arizona’s Booming Sports Betting Landscape: July 2024 Revenue Insights
The Arizona Department of Gaming has unveiled impressive figures for July 2024, reporting a staggering $42.5 million in gross sports betting revenue. This figure, which represents the total earnings before any deductions, highlights a vibrant summer for sportsbooks across the nation, with Arizona standing out as a key player in the sports betting arena.
Year-Over-Year Growth
Arizona’s sports betting revenue saw a 20.3% increase compared to July of the previous year. This growth, while robust, was slightly overshadowed by a 26.9% rise in handle, which reached $410.1 million. Notably, Arizona’s performance in handle outpaced that of neighboring Nevada for the third time in four months, with a remarkable $34.2 million difference in July. This trend underscores Arizona’s growing prominence in the sports betting landscape, as it continues to attract bettors from across the region.
Monthly Trends and Tax Revenue
Despite the impressive year-over-year growth, Arizona experienced a 9.7% dip in month-over-month wagering as the second half of 2024 commenced. Gross winnings also saw a decline of 10.1%. However, the taxable revenue for the state amounted to $29 million, which provided $2.9 million in tax receipts, reflecting an 8.1% increase from July 2023, although it was down 8.3% from June.
On a national scale, the total known handle for July (excluding Florida and Nebraska) reached $7.93 billion, marking a 34.4% year-over-year increase. This surge translates to over $2 billion in additional wagers, showcasing the growing appetite for sports betting across the United States. The national win rate stood at 11.1%, indicating a strong performance by sportsbooks, with this being the third instance of double-digit holds in 2024.
State Taxes and Overall Revenue
In July, states collected a total of $183.2 million in taxes from sports betting, a significant increase of $56.1 million compared to the previous year. Adjusted gross revenue for the month totaled just shy of $786 million, with a substantial 37.2% of this revenue coming from the powerhouse states of New York, New Jersey, and Illinois.
DraftKings vs. FanDuel: The Battle for Arizona
In the competitive landscape of Arizona’s mobile sports betting, DraftKings emerged as the leader in July, reporting $16.5 million in gross revenue from a handle of $146.4 million. DraftKings achieved an 11.3% hold, slightly edging out FanDuel, which recorded an 11.2% hold on its $125.8 million handle, resulting in $14.1 million in gross winnings.
Interestingly, DraftKings managed to achieve this success with a significantly lower promotional spend of $2.8 million, compared to FanDuel’s $4.5 million. This strategic approach allowed DraftKings to see a 43% year-over-year increase in handle, with revenue growth outpacing this at 57%.
The Rise of New Entrants
The Arizona market is also witnessing the emergence of new players like bet365 and Fanatics Sportsbook. Bet365 reported a 9.8% hold with nearly $2 million in gross revenue from a handle of $20.4 million. Meanwhile, Fanatics Sportsbook has consistently surpassed $15 million in handle each month since its launch, accepting $16.1 million in wagers in July.
Year-to-Date Performance
As of July 2024, Arizona’s sportsbooks have collectively generated $401.7 million in gross revenue, reflecting a 34.5% increase year-over-year. The total accepted wagers for the year reached $4.19 billion, marking an 18.1% increase. The hold rate for the year stands at 9.6%, indicating a healthy market dynamic.
The state has collected $25.9 million in taxes from sports betting so far this year, an increase of $6.6 million compared to the same period last year. Adjusted gross revenue has been nearly 65% of gross winnings, slightly better than previous years, showcasing the efficiency and profitability of Arizona’s sports betting framework.
The Future of Sports Betting in Arizona
As Arizona continues to solidify its position as a leading sports betting market, the dynamics between established giants like DraftKings and FanDuel, alongside the rise of new entrants, will be crucial in shaping the future landscape. With the state’s regulatory framework and growing acceptance of sports betting, the potential for further growth remains significant, promising an exciting future for bettors and operators alike.