February is foreshadowing how sports betting will change around the country. The lack of NFL action and fewer sports in the summer will continue to bring handle down. March will bring a bump thanks to the college basketball tournaments, but the summer is fast approaching and in such a large field, some operators will start to feel the pinch.
Arizona’s Department of Gaming reported that the Valentine State took in $637.4 million in wagers in February, the lowest handle since September’s $610.7 million. Compared to January, the state saw a nearly 10% monthly decline in action.
Revenue also fell, with the sportsbooks announcing $28 million in adjusted winnings (after free bet deductions). The hold percentage came in at 8.6% and that in turn brought the tax bill down to $2.7 million in February from $4.6 million in January.
Online giants still ahead of the pack
Despite the incredibly competitive field for sports betting in Arizona, DraftKings and FanDuel have consistently dominated the other operators. The same is true in February, where they combined for $436 million of the $631 million mobile wagers in the entire state, leaving the other 15 sportsbooks to fight for the remaining $195 million.
Here is the list of books with more than $5 million in combined handle:
Operator | February Handle | Revenue |
---|---|---|
FanDuel | $232 million | $12.8 million |
DraftKings | $207.8 million | $11.3 million |
BetMGM | $73.6 million | $2.5 million |
Caesars | $44.4 million | $717,000 |
ESPN BET | $26.5 million | $129,000 |
bet365 | $24.4 million | $0 |
Hard Rock | $8 million | $167,000 |
Desert Diamond | $5.3 million | $0 |
Free bets tied to larger handle, sometimes
There is certainly a correlation between higher handles and higher amount of free bets. FanDuel and DraftKings lead the way in these promos, with FanDuel deducting $6.7 million and DraftKings with $8.2 million. BetMGM was third in handle and third in free bets ($3.4 million).
Then there are some instances where this breaks the mold. bet365 was fourth in free bets, but failed to leapfrog Caesars or ESPN BET in market share.
Caesars, on the other hand, reported under $1 million in deductions, but still recorded a solid handle.