Arizonas sports betting revenue skyrocketed to $486.1 million in October, a substantial increase from its initial month.
The state’s sports betting revenue surged from $291.2 million in September to $486.1 million as Rush Street Interactive joined the market alongside BetMGM, Caesars, WynnBet, FanDuel, Penn National’s Barstool Sportsbook, Kindred’s Unibet and Churchill Downs’ TwinSpires.
DraftKings dominated the market with $151.5 million in wagers during the month, surpassing FanDuel’s $120.8 million and BetMGM’s $92.1 million.
Online sports betting accounted for the majority of the total revenue at $479.3 million, with only $6.8 million wagered through physical locations.
Gamblers won back $448.6 million of their bets, resulting in an adjusted gross revenue of $36.3 million for all licensees. DraftKings again led the market with $11 million in revenue, followed by FanDuel’s $9.1 million and BetMGM’s $7.6 million.
However, significant promotional spending considerably reduced the gross revenue, with operators spending $26 million on free bets and points, leading to a taxable gross revenue of $10.4 million. This was, however, a substantial improvement from September when all online gross revenue was offset by promotional spending.
During the ninth month, only Caesars and FanDuel generated taxable income (USD 392,417.8) from their brick-and-mortar sports wagering ventures, even though six businesses generated taxable income in the tenth month.
However, this promotional expenditure flipped the standings, with BetMGM leading the pack at USD 2.8 million in earnings, closely followed by FanDuel, which trailed behind by only about USD 50,000 in both physical and digital spaces. DraftKings was the biggest spender on promotions, dropping to third place with USD 2.5 million in earnings.
This created USD 1 million in tax revenue for Arizona. Physical betting revenue is taxed at an 8% rate, generating USD 50,867, while online sports betting companies produced an additional USD 971,974.
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