SPORTS BETTING
US – Arizona sportsbooks enjoy busiest debut month in US history
By Phil - 4 January 2022
Arizona’s sportsbooks enjoyed the busiest debut month in the history of US legal sports betting with nearly $300m in wagers in September, more in than any other state in its first month in US history, according to analysts from PlayAZ.com, which tracks the fledgling Arizona gaming market.
“Football is the straw that stirs the sports betting drink, so launching ahead of the NFL’s first game and with college football going full tilt was critical,” said Eric Ramsey, an analyst for the PlayUSA.com Network, which includes PlayAZ.com. “Most of the country’s best-known sportsbook brands jumped in early, too. And with nearly a full month to operate, it made for a remarkable debut.”
Arizona’s online and retail sportsbooks accepted $291.2m in wagers in September, according to official data released Friday night by the Arizona Department of Gaming. That buried the former record of $131.4m in a market’s first calendar month, set by Tennessee in November 2020.
In all, the state’s sportsbooks generated $32.3m in gross gaming revenue from September 9 to 30, which is also the most in history for a state in its first month of legal sports betting. That led to $31.6m in net revenue. After $31.2m in promotional credits, the state taxed $392,418 in gross event wagering receipts, producing $31,293 in privilege fees for the state.
To put Arizona’s debut in context, New Jersey, the nation’s largest sports betting market, did not surpass $290m in a month until it produced $385.3m in its ninth month.
“Arizona has enormous potential as a market, but it is encouraging for the industry to see such a strong debut,” said C.J. Pierre, lead analyst for PlayAZ.com. “Setting a record in the first month would qualify as getting the market off on the right foot. The next question is how quickly the state can ramp up and compete with more established markets. It appears that won’t take long.”
Online sports betting accounted for $288.1m of the state’s handle, with retail sportsbooks generating the remaining $2.6m in wagers. Seven sportsbooks debuted in the first month, including FanDuel and DraftKings — the two largest operators in the US — as well as familiar brands Barstool, BetMGM, Caesars, TwinSpires, Unibet, and WynnBet.
DraftKings topped the market with $97.7m in wagering, which produced $12.7m in gross revenue. FanDuel was second with $57.7m in online wagers and $1.9m in retail bets, yielding $594,897 in gross revenue.
The state’s operators also got a boost from the hot start by the Arizona Cardinals, which opened the season at 4-0, spiking bettors’ interest.
“Local sports matter and a strong NFL team matters more than most, so the Cardinals’ historic start was a godsend for sportsbooks,” Ramsey said. “Arizona’s operators are aiming to engage new bettors and quickly grow their customer base. An enthusiastic fan base makes that job easier.”
