Arizona Sports Betting Posts Big Handle, Slimmer Revenue in December
Arizona’s sports betting market closed out the year with a mixed bag. Bettors pumped $849 million into wagers, a 23% jump from last December, yet operator revenue took a hit, dropping 25% to $49.3 million before deductions.
Handle Soars, Revenue Slides
That $849 million handle, just 5.4% shy of November 2024’s record, leaned heavily on online bets at $844.3 million, with retail adding a modest $5.1 million.
Players walked away with $798.2 million in winnings, leaving operators with a pre-deduction hold of 5.8%. After $23.5 million in free bets and promos got sliced off, adjusted gross revenue landed at $25.8 million, down 44.2% year-over-year and 55.1% from November. The post-deduction hold was a slim 2.77%.
Arizona pocketed $2.6 million, nearly all from online’s 10% rate, while retail’s 8% cut chipped in a mere $3,600. Despite the handle’s muscle, revenue shrinkage left less for the state’s coffers.
Who’s Running the Show?
FanDuel and DraftKings stayed neck-and-neck at the top. FanDuel led with a $276.2 million handle and $20.7 million in revenue, all online, boasting an 8.41% hold.
DraftKings followed tight with $275.9 million wagered and $16.3 million earned, clocking a 5.91% hold. Both shelled out $7.1 million in promos, keeping players in the game.
BetMGM held third, posting $112.4 million in handle and $3.9 million in revenue, the only operator with retail earnings in the mix. Its 3.47% hold showed bettors got the better end.
Caesars pulled $47.5 million in bets for $2 million in revenue, while Bet365’s $40 million handle netted $1.8 million, each hovering around 4.2–4.49% holds.
Fanatics notched $43.2 million in bets and $2 million in revenue at 4.6%, and ESPN Bet trailed with $22.9 million wagered for $700,000 earned. BetRivers, with a $6.6 million handle, spent $200,000 on promos to land $600,000 in revenue.
What’s Behind the Numbers?
The handle’s 20.2% annual climb signals Arizona’s betting appetite is still growing, fueled by online platforms dominating 99.4% of action. But that 25% revenue drop, or 28% by some counts, points to a catch. Operators leaned hard into $23.5 million in promos to keep bettors engaged, especially with NFL and NBA seasons peaking. That generosity, paired with a statewide hold dipping to 5.8%, meant less stayed in the till.
Compared to November’s $41.4% revenue plunge, December’s softer margins suggest bettors cashed in more wins. FanDuel’s 8.41% hold stood out, while DraftKings and BetMGM lagged, hinting at uneven luck or strategy across the board.
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