Sportsbooks in Arizona enjoyed a prosperous year, retaining $545.4 million after paying out winners. This financial success translated into substantial tax revenue for the state, with $34.8 million collected from sportsbook operations—a 20% increase from the $28.9 million collected in 2022. Since the legalization of sports betting in September 2021, Arizona has amassed $69.7 million in fees from sportsbooks.
The convenience and accessibility of mobile apps played a pivotal role in 2023’s betting landscape, with the majority of wagers placed through digital platforms. This trend underscores the shifting preferences of bettors towards online betting experiences.
Market Leaders and Challengers
FanDuel and DraftKings emerged as the dominant forces in Arizona’s sports betting market, capturing a significant market share. FanDuel, in particular, saw a remarkable 27.6% increase in wagers, totaling over $2.3 billion, while DraftKings experienced a modest 3.4% growth, reaching $2 billion in wagers.
Despite the success of these market leaders, not all sportsbooks shared in the surge. BetMGM and Caesars, for example, witnessed declines in their total handle for 2023 compared to the previous year.
However, the landscape was not bleak for all challengers. Several smaller operators, including Desert Diamond Mobile, Betway, and Sahara Bets, reported triple-digit increases in their calendar year handle, although their market share remains a fraction of that held by FanDuel and DraftKings.
Additionally, Penn Entertainment’s sportsbook, recently rebranded as ESPN Bet, experienced a significant surge in the latter part of 2023, nearly overtaking Caesars for the fourth-place spot.
While industry giants like FanDuel and DraftKings continue to lead, the success of smaller operators and new entrants like ESPN Bet indicates a dynamic and evolving market.
As digital platforms increasingly become the preferred method for placing bets, the future of sports betting in Arizona looks promising, with potential for even greater growth and diversity in the years to come.
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