Sportsbooks in Arizona grossed $53 million in February, according to figures shared by J.P. Morgan analyst Joseph Greff. This represents a 56 percent increase from last year.
Handle on sports betting in the state was $636 million, up four percent. Hold was 8.3 percent.
Greff posited no reason for the sharp rise in revenue. Promotional allowances were down only slightly. Free bets and other promotions were $25.1 million or 47 percent of all revenues. That was a decrease from February 2023’s 53 percent.
Five operators accounted for 92 percent of both handle and revenue. FanDuel and DraftKings grew their market share, while BetMGM, Caesars Sportsbook, and ESPN Bet all lost varying degrees of share.
FanDuel led in both handle ($232 million) and win ($19.7 percent), while DraftKings came in second in both categories, with $208 million and $19.3 million, respectively. BetMGM had a handle of $74 million and revenue of $6.1 million, while ESPN Bet booked $27 million and won $2 million. Caesars Sportsbook generated $44 million in bets, but finished behind ESPN Bet in revenue with $1.4 million. Bet365 handled $24.5 million, engendering revenue of $3.4 million. BetRivers made $200,000 off a handle of $4.5 million and all other operators combined to win $900,000.
Promotions as a percentage of handle were in the single digits, led by ESPN Bet (6.9 percent). An exception was Bet365, which spent 14 percent of handle on giveaways. Fifteen percent of promotional allowances are tax-deductible under Arizona law.
