Sports Betting Handle Record Missed During December in Arizona, But New Revenue High Hit

The Arizona Department of Gaming December revenue report was released Monday, and while revenues for Arizona sports betting set a record through the best sportsbooks, overall sports betting activity in the Grand Canyon State missed out on the new handle high that was set in November.

December's report represented a fitting end to what was a very good year for the Arizona legal sports betting industry. Arizona sports betting apps and the state's retail providers combined to take in a whopping $6.57 billion in 2023 and reported $557.4 million in gross revenues.

A good month helped FanDuel set a new single-provider revenue mark in December. Despite a relatively poor full-year win rate for FanDuel in the state, the provider posted what has to be considered an excellent year in the Arizona market.

$693.3 million for December

Arizona sportsbooks, which offer Arizona sportsbook promos, reported $693.3 million in accepted sports wagers in December. That figure represents a slight 2.8% drop from the record handle of $713.6 million in November, but it's up 21.1% year-over-year from $572.5 million in December 2022.

December represented the end of a stellar 12-month period for Arizona sports betting. For 2023, Arizona's best sports betting sites took in a whopping $6.57 billion in wagers. That's an 8.9% improvement from the just over $6 billion in accepted wagers from 2022.

Revenue record

A marginally higher hold rate than in previous months for Arizona sportsbooks helped the state to a monthly gross revenue record of $67.7 million in December, despite a slightly lower handle.

$67.7 million easily tops the $42.3 million in sportsbook profits in November, and it bests the previous revenue high of $60.1 million from September. It's also $12 million better than December 2022.

Arizona sportsbooks closed 2023 strong, posting three of the lifetime best revenue months in the last four months. For 2023, Grand Canton State providers combined for $557.4 million in revenues, often through the best sports betting apps. That's a 17.8% year-over-year improvement from 2022.

Taxes collected from Arizona sports betting sites reached a new high thanks to the record revenue figures in the state. In December, Arizona state and local tax coffers benefitted to the tune of $4.8 million, thanks to $48.3 million in adjusted gross revenue for state operators.

For 2023, Arizona sportsbooks paid $34.8 million in taxes, which is just under $6 million more than was paid in 2022. The Arizona lifetime tax revenue total from its sports betting sector now stands at $69.6 million.

FanDuel rakes in the profits

FanDuel was once again the best Arizona sports betting site during December. The provider set a new monthly record for revenues with $29.1 million. FanDuel smashed its own record of $25.1 million set in November 2022.

DraftKings was a familiar second in terms of profits with just over $20 million in December revenues, the third time in four months it reached the $20-million plateau. BetMGM was third in both handle and revenues. The operator made $8.7 million in revenues during December.

Caesars checked in fourth, with ESPN BET a somewhat disappointing fifth in the Grand Canyon State market during December.