Arizonas sports wagering revenue reached a remarkable $486.1 million in October, marking a substantial 66.9% surge from its initial month of legalized betting.
The noteworthy rise in revenue, exceeding the $291.2 million recorded from September 9-30, coincided with the entry of Rush Street Interactive into the market, joining established players like BetMGM, Caesars, WynnBet, FanDuel, Penn National’s Barstool Sportsbook, Kindred’s Unibet, and Churchill Downs’ TwinSpires.
DraftKings emerged as the market leader in terms of revenue, securing $151.5 million for the month, outpacing FanDuel’s $120.8 million and BetMGM’s $92.1 million.
Online sports betting dominated the scene, accounting for a substantial $479.3 million of the total, with a mere $6.8 million wagered through physical betting locations.
Players successfully reclaimed $448.6 million of their wagers, resulting in an adjusted gross revenue of $36.3 million for all licensed operators. DraftKings again topped the revenue charts, generating $11 million, followed by FanDuel’s $9.1 million and BetMGM’s $7.6 million.
However, substantial promotional spending significantly impacted gross revenue, with operators allocating $26 million to free bets and reward points, leading to a taxable gross revenue of $10.4 million. This marked a notable improvement from September, when all online gross revenue was completely offset by promotional expenditures.
During the ninth month, only Caesar’s and FanDuel produced assessable income (USD 392,417.8) from their physical sports wagering operations, despite the fact that six organizations produced assessable income in the tenth month.
This promotional spending altered the standings, with BetMGM taking the lead with USD 2.8 million in earnings, closely followed by FanDuel, whose physical and digital earnings differed by roughly USD 50,000. DraftKings was the biggest promotional spender, coming in third with USD 2.5 million in earnings.
This brought Arizona USD 1 million in tax revenue. Physical betting earnings are taxed at an 8% rate, generating USD 50,867 in revenue, while online sports betting companies generated USD 971,974 in revenue.
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