Arizona Sports Betting Revenue
Legal sports betting launched in Arizona on September 9, 2021. With US sports betting revenue soaring across the country in 2021, find out why the Grand Canyon State figures to be a top new market. Let’s take an in-depth look at Arizona sports betting revenue projections.
Arizona Sports Betting Revenue: Month-By-Month Data
Sports Betting Dime keeps track of the growth of legal sports wagering by analyzing monthly financial reports provided by each state.
Here’s a quick definition for some of these terms:
- Handle is the total financial figure wagered on sports
- Revenue refers to the money kept by sportsbooks after payouts
- Hold percentage is the amount of revenue betting sites kept from the total betting handle
- State tax revenue is how much tax was collected by the state and local jurisdictions
The table below shows key financial figures from the launch of Arizona’s sports betting industry in September 2021 to date.
| Month/Year | Total Handle | Revenue | Hold Percentage | State Tax Revenue |
|---|---|---|---|---|
| September 2021 | $291,212,868 | $31,238,322 | 10.7% | $31,393.43 |
| October 2021 | $486,097,352 | $36,326,542 | 7.5% | $1,022,841.29 |
| November 2021 | $466,725,687 | $51,416,143 | 11.0% | $3,177,148 |
| December 2021 | $499,213,733 | $39,822,928 | 8.0% | $1,723,902 |
| January 2022 | $563,694,591 | $41,890,200 | 7.4% | $1,952,971 |
| February 2022 | $491,665,554 | $25,629,835 | 5.2% | $670,686 |
| March 2022 | $690,979,294 | $37,231,646 | 5.4% | $1,864,457 |
| April 2022 | $512,877,848 | $29,249,275 | 5.7% | $1,647,450 |
| May 2022 | $461,450,688 | $55,162,888 | 12.0% | $4,125,125 |
| June 2022 | $318,774,198 | $15,369,245 | 4.8% | $766,831 |
| July 2022 | $290,511,533 | $21,992,628 | 7.6% | $1,496,427 |
| August 2022 | $361,008,835 | $37,161,759 | 10.3% | $2,767,590 |
| September 2022 | $537,966,149 | $56,428,816 | 10.5% | $3,058,838 |
| October 2022 | $618,570,296 | $48,094,063 | 7.8% | $2,963,716 |
| November 2022 | $616,855,045 | $54,729,734 | 8.9% | $3,876,208 |
| Total (since launch) | $7,207,603,672 | $581,744,025 | 8.1% | $31,145,584 |
Sports Betting Dime will update this table monthly with the latest figures provided by the Arizona Department of Gaming.
AZ Sports Betting Revenue: Annual Figures
The table below will be updated with Arizona’s annual sports betting handle, gross gaming revenue, and hold percentage, as well as state tax revenue collected since PASPA was overturned in 2018.
| Year | Total Handle | Revenue | Hold Percentage | State Tax Revenue |
|---|---|---|---|---|
| 2021 | $1,743,249,640 | $158,803,935 | 9.1% | $5,955,284.72 |
Arizona sports betting kicked off in September 2021, so the figures in the table above will only account for four months of 2021. Still, the overall totals will jump off the page, as Arizona collected over $480 million in total wagers in the first full month of betting through October 2021.
Latest AZ Revenue News
Here’s a quick rundown of the latest revenue-related news for Arizona.
February 2022 – After 6 full months of legal wagering, Arizona sports betting revenue continues to hold strong. Despite a dip in sports betting revenue through the year’s shortest month, Arizona sportsbooks still collected over $25 million in profit.
January 2022 – With the Arizona Cardinals reaching the NFL playoffs yet again, Arizona sports betting handle hit new records to kick off January 2022. The Grand Canyon State reported $563,694,591 in total wagers, and Arizona sports betting revenue held strong at over $41 million.
December 2021 – The monthly sports betting handle continued to rise in Arizona through the last month of 2021, with a total of over $499 million in wagers collected through December. This is not surprising as the NFL season ramped up betting figures leading up to the playoffs.
November 2021 – Arizona sports betting revenue reached new highs through November 2021, with state tax revenue totaling $3,177,148. The Grand Canyon State crossed the $1 billion handle mark after just three months of sports betting.
October 2021 – The first full month of Arizona sports betting was absolutely massive, as the state collected $486,097,352 in total wagers through October 2021.
September 2021 – Arizona sportsbooks begin taking bets on September 9, 2021. Arizona reported a total handle of $291,212,868 through their first month of regulated sports betting in September 2021.
July 2021 – The Arizona Department of Gaming releases the second draft of its rules and regulations for sports betting. The document proposes an 8 percent tax rate on gross revenue for retail betting and 10 percent for online sportsbooks. It also outlines the following license fees:
- $100,000 application fee
- $750,000 initial license fee
- $150,000 annual renewal fee
June 2021 – The Arizona Department of Gaming confirms they are still on track for a September 9, 2021 target launch date. The state’s sports betting tax rate is yet to be determined, but the current bill outlines a minimum of 8 percent.
February 2021 – The Arizona Joint Legislative Budget Committee releases a Fiscal Note concerning House Bill 2772, the state’s sports betting bill. In it, the committee projects approximately $155 million in annual sports betting revenue by 2024.
AZ Market Overview
To understand the potential of the Arizona sports gambling market, here’s some important context.
State Population (2020 Census): 7,151,502
In-state Pro Teams: Arizona Cardinals (NFL), Arizona Coyotes (NHL), Arizona Diamondbacks (MLB), Phoenix Suns (NBA), Phoenix Mercury (WNBA)
Launch Date: September 9, 2021
Biggest Monthly Handle: $690,979,294 (March 2022)
Regulator: Arizona Department of Gaming
Platforms: Online and retail (launch pending)
Tax Rate: 8 percent of retail revenue, 10 percent of online betting revenue
Arizona Sports Betting Revenue Expectations: What Does the State Government Think?
Analysis from the Arizona State Legislature provides insight into how much money the government thinks it can generate via legal sports betting. In a Fiscal Note supporting House Bill 2772, government analysts projected a total annual sports betting revenue of $15.2 million by 2024, all of which will be funneled into the state’s General Fund, minus 10 percent in administrative costs.
Legislators based their estimated fiscal impact on a minimum tax rate of 8 percent on operators’ net sports betting revenue and an annual licensing fee of $150,000 per operator (total of $4.1 million after admin costs).
Furthermore, the state used data from four other states (Iowa, Indiana, Pennsylvania, and West Virginia) from July 2020 to December 2020 to predict an annual revenue per capita of $20.80. Multiplying this figure by Arizona’s population provided an estimated taxable revenue of $154.4 million annually once the market is fully operational. At a tax rate of 8 percent, this would result in $11.1 million in state tax revenue.
Second Opinion: Arizona Market Is Bigger Than Legislators Think
An annual sportsbook revenue of nearly $155 million is nothing to scoff at. In 2020, that would have been the fourth-highest revenue of any state. Plus, lawmakers will be thrilled to recoup millions back into state coffers.
However, using our own revenue analysis from the four states mentioned above, it’s possible the Arizona Legislature may have underestimated its sports betting revenue projections. The sports wagering markets in Iowa, Indiana, and Pennsylvania are growing rapidly, significantly outpacing the extrapolated 2021 revenue in Arizona’s report.
Furthermore, recent launches in similarly sized markets such as Tennessee and Virginia would suggest Arizona sports betting revenue could be higher than what the state government is expecting in the market’s first year, let alone by 2024.
Here’s a look at Tennessee’s total reported financial figures six months after launching in November 2020.
| Total Handle | Revenue | Hold Percentage | State Tax Revenue | Tax Rate |
|---|---|---|---|---|
| $1,078,244,523 | $92,444,908 | 8.57% | $18,343,918 | 20 percent |
Keep in mind, Tennessee has a very similar population to Arizona but fewer pro sports teams (TN does not have an MLB or WNBA team, which AZ has).
Meanwhile, over on the East Coast, Virginia is off to an even hotter start. Here are the totals from VA’s first four months, beginning in late January 2021.
| Total Handle | Revenue | Hold Percentage | State Tax Revenue | Tax Rate |
|---|---|---|---|---|
| $865,173,638 | $61,841,050 | 7.15% | $3,175,939 | 15 percent |
With some quick mental math, you can see that doubling and tripling Tennessee’s and Virginia’s numbers so far, respectively, to predict each state’s revenue in their first full year gives you roughly $185 million for both. Therefore, if Arizona were to match the hot start we’ve witnessed with the latest two states to launch, sports wagering could generate nearly 20 percent more than they’ve accounted for in their analysis – in year one!
For what it’s worth, analysis by ArizonaCasinos.com projects the Grand Canyon State could generate $252 million in annual sports betting revenue at market maturity.
We’ll be tracking all the numbers right here at Sports Betting Dime. We’ll provide updated analysis as the reports start rolling in, but for now, suffice to say that Arizona looks to be a hot new sports betting market this fall.
Arizona Revenue: Advantages
Arizona’s biggest advantage in terms of its ability to generate sports betting revenue is that lawmakers will permit up to 20 licensed operators, and online betting will be live from the get-go. Furthermore, Arizona has a number of thriving tribal casinos, suggesting a warm attitude towards gambling in general.
The Grand Canyon State has a booming tourism industry, and Phoenix is known as one of America’s best sports cities. Plus, we should not overlook that Arizona will host Super Bowl LVII at Glendale’s State Farm Stadium in early 2023. The Super Bowl is a massive driver of betting volume, and you can bet Arizonians will be rushing to get in on the action when the Big Game returns to their home grounds.
Arizona Revenue: Possible Challenges
The most significant question mark we had that will affect Arizona’s betting handle, and in turn, its sports betting revenue, was what restrictions will be placed on college sports betting.
Arizona is home to several popular and successful college sports teams, including the Arizona Wildcats, Arizona State Sun Devils, and Grand Canyon Antelopes. Regulators chose to allow bets on in-state college teams, which is good news, but prop bets on individual performances won’t be permitted when wagering on college sports (due to ethical concerns).
States that limit college sports betting in any way fail to capitalize on the immense pull of college football and tentpole events such as March Madness. Given the likelihood of alumni remaining in-state, not allowing wagers on local teams is a mistake from a revenue standpoint.
Luckily, Arizona lawmakers put few restrictions on college sports betting. While not being able to wager on individual props is unfortunate because they are a ton of fun, it should have only a minor impact on Arizona achieving its full potential when it comes to sports betting revenue.
Learn More About Betting on Sports in AZ and Beyond
Sports Betting Dime provides exclusive promo codes for top sports betting sites and all the latest updates regarding Arizona’s sports gambling rules and regulations.
To see how Arizona compares to other states, be sure to explore our state-by-state sports betting revenue tracker.
A lifelong athlete and sports fan who’s worked in sports for over ten years, Natalie brings a firsthand perspective and keen interest in sports business to her work. She’s excited to observe and analyze the future of the sports betting industry as it heats up.
