Business perked up for sports betting sites in the Grand Canyon State in January.
Numbers reported Monday by the Arizona Department of Gaming (ADG) show the state’s legal sports betting operators handled $591.2 million in wagers during January, the most recent month of disclosures by the regulator. That monthly handle was up from $572.5 million in December and $563.7 million in January 2022.
The leading operator in Arizona by handle during January 2023 was FanDuel, with $195.4 million in bets over the internet and $2.5 million in wagering at its retail sportsbook. Finishing second for the month was DraftKings, with $171.4 million in total handle.
Adjusted gross revenue for the state's sportsbooks was $46.2 million for January. Based on that, the hold for operators was 7.8% for the month.
Spend and tax
However, after accounting for payouts to winning bettors, removing the federal handle tax, and deducting $17.2 million in free bets and other promotional credits provided to players, Arizona sports betting revenue for January was almost $29 million.
The state's 8% tax rate on retail revenue and 10% tax on mobile revenue meant the month’s revenue translated into almost $2.9 million in tax for the state.
“We saw another substantial month of sports betting in Arizona to kick off 2023, with nearly $600 million wagered during January,” said Jackie Johnson, director of the ADG, in a press release. “I look forward to monitoring how wagering progresses throughout the rest of the year.”
