- Arizona’s sports betting market generated over $67.5 million in revenue.
- Sportsbooks handled just under $780 million in sports wagers withing the first two months of launch.
LAS VEGAS – The Arizona sports betting market is still young, but already thriving as residents wagered almost $780 million in the first two active months of betting.
A Huge Sports Betting Launch With A Small Tax Payout
Arizona sportsbooks reportedly managed to pull in over $67.5 million in total revenue from the first two months of sports betting.
Of that massive $67.5 million revenue pull between the two months, the Arizona state government only saw just over $1 million in taxes.
A large portion of that massive initial $780 million handle across September and October supposedly came from promotions and free bets meant to acquire a player base.
These free bets are taxed differently than standard real money bets.
As the market stabilizes, and there are less free bets being placed from new sign-up, it’s probable that more of the handle made will translate to taxable income.
“You’re gonna have fluctuations throughout the year depending on the sports going on,” said Jeff Weninger, State Representative. “Then you’re gonna have the Super Bowl, where one day makes up for how many other days. I don’t think it hurts that we have a great Suns team and great Cardinals team. That plays into it.”
In October of 2021, only four online sportsbook operators made over a million in revenue.
- BetMGM: $2.8m
- DraftKings: $2.5m
- FanDuel: $2.3m
- Barstool: $1.1m