Arizona Sports Betting Hits $791M in October 2024
In October 2024, sports betting in Arizona reached a total handle of approximately $791 million—22% higher than in October of the previous year.
Total Revenue Breakdown
In October, the total handle of sports betting operators in Arizona amounted to $791.2 million. Since October proved exceptionally favorable for players in nearly all states, operators paid out a total of $735.6 million to them. A very low hold rate of just over 7% is the best example of how lucky bettors were in October.
Ultimately, the operators’ total gross revenue before deducting free bets reached $53,8 million. Of this amount, $2.4 million was contributed to the state budget in the form of taxes.
Operator-Specific Results
The hold percentage varied across the market. FanDuel achieved the highest hold rate at 8.65%, retaining $21.71 million from $250.98 million in wagers.
Fanatics Sportsbook followed with a 7.09% hold on its $40.60 million handle. DraftKings and BetMGM both retained similar percentages, 5.78% and 5.77%, respectively.
Caesars held 4.52% of its $43.40 million handle, while PENN/ESPN Bet had a hold rate of 5.04% from its $19.31 million handle.
Smaller operators like Golden Nugget and SuperBook displayed negligible or minimal contributions, with SuperBook retaining $1,219 from just $1,996 in wagers.
- DraftKings: $258.65M handle; $14.95M gross revenue.
- FanDuel: $250.98M handle; $21.71M gross revenue.
- BetMGM: $98.86M handle; $5.71M gross revenue.
- Caesars: $43.40M handle; $1.96M gross revenue.
- Fanatics Sportsbook: $40.60M handle; $2.88M gross revenue.
- PENN/ESPN Bet: $19.31M handle; $974K gross revenue.
- Golden Nugget Online Gaming: $157,782 handle; $0 gross revenue.
- SuperBook: $1,996 handle; $1,219 gross revenue.
Promotional Deductions
Promotional deductions greatly influenced the net revenue figures for October 2024. Operators leveraged free bets and promotional offers as a strategic approach to attract and retain bettors, which considerably lowered taxable revenue.
Although the total gross revenue for all operators reached $53.76 million, deducting promotional expenses reduced the net revenue to $23.57 million. This demonstrates the significant effect of marketing expenditures on operator profit margins and overall state revenue, as the deductions have a direct impact on privilege fee contributions.
Arizona Takes Actions Against Illegal Operators
In December 2024, Arizona authorities executed a coordinated effort to curb the operations of Bovada, an unregulated offshore sportsbook.
The campaign involved issuing cease-and-desist orders, blocking access to the platform, and collaborating with financial institutions to disrupt payment channels. Law enforcement agencies also launched investigations into Bovada’s activities, seeking to identify and penalize those facilitating its services.
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