Arizona’s retail and mobile sportsbook operators generated a $777.3 million handle during their first two months in business, but they also gave away $57.2 million in free bets to attract players to their platforms in the Grand Canyon State.
Data from the Arizona Department of Gaming (ADG) show the nine sportsbook operators collectively made $68 million in revenue in September and October 2021 — the first two months for legalized online sports betting. But once free bets are subtracted, the remaining profits totaled $10.7 million.
The state, which levies a 10% tax on profits after free bets, has collected more than $1 million in taxes to date. The tax credit for free bets and promotional credits is limited to the first five years of the market and phases out in stages. The credits start at 20% for the first two years, followed by 15% in year three and 10% in years four and five.
October’s handle was $486.1 million, up from $291.2 million in the opening month. Revenue before free bets was $36.3 million in October and $31.6 million in September, while the free bets themselves totaled $26 million in October and $31.2 million in September.
Profits subject to tax totaled $10.4 million in October and $392k in September. Meanwhile, tax revenue was $1 million in October and $31k in September.
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DraftKings Leads in Handle
DraftKings was tops in handle for both months. It brought in $151.4 million in wagers in October, up from $97.7 million in September. FanDuel was second in October — and double from September — with a $115.9 million handle, followed by BetMGM ($92 million) and Caesars Sportsbook ($69.1 million).
BetMGM had the second-highest handle in September at $58.9 million, edging out FanDuel at $57.9 million. Caesars was fourth in handle during both months and had $42.1 million in September.
Barstool and WynnBET were the only other sportsbooks to bring in a seven-figure handle in October and September. Barstool had a $26.3 million handle in October, double the $13 million in wagers drawn in September. Meanwhile, WynnBET had a $20.7 million handle in October, up from $17.4 million the month prior.
TwinSpires held one of the smaller parts of the handle at $1.6 million in October, but that was more than triple from September ($490k). Unibet’s handle also tripled, hitting $1.2 million, up from $420k.
BetRivers, which started accepting wagers in October, had a $682k handle that month.
Smallest Operators Gave It All Away in Free Bets
In terms of revenue before free bets, DraftKings led the field at $11 million, followed by FanDuel at $8.6 million, BetMGM at $7.6 million, and Caesars at $4.7 million. Barstool ($1.8 million) and WynnBET ($1.7 million) closed out the group of large- and mid-sized operators.
TwinSpires, BetRivers, and Unibet had pre-free bet revenue of $196k, $66k, and $29k, respectively. They ultimately gave all of the money away in free bets in order to entice bettors to their platforms.
DraftKings gave away $8.5 million in free bets and promotional credits in October, followed by FanDuel ($6.3 million), BetMGM ($4.8 million), and Caesars ($4 million). Free bets through WynnBET totaled $1.4 million in October, while Barstool gave away $640k.
