Arizona hits record $55 million in Gross Gaming Revenue in May

Arizona hits record $55 million in Gross Gaming Revenue in May

Sports betting operators in Arizona saw $55 million in gross gaming revenue this May, the highest since the state launched sports betting. The report released by the Arizona Department of Gaming shows that May’s gross gaming revenue (GGR) breaks the previous record set in November 2021 of $50.2 million. 

In April 2022, the state’s GGR was just $29 million. This means that the GGR for the operators has gone up 88.6% over the past month. 

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However, the state’s handle was lower in May than in April. In April, Arizona’s handle was $512.8 million, and in May that number dropped to $461.4 million. Excluding September 2021, when the state launched sports betting, May’s handle is the lowest of any month to date. 

The discrepancy between a lower amount of handle and a higher GGR can be explained by how much operators had to pay out in winning bets. In April, operators paid bettors $482.4 million in winnings, or just over 94% of the total handle. In May, the payout was $405.2 million, which comes to 87.8% of the handle. 

Arizona Tax Revenue in May 2022 

The record-breaking GGR for operators in May also led to the highest-ever tax revenue for Arizona. Operators offered $13.8 million in promotional credits in May, which meant that $41.4 million of the total revenue was eligible for taxation. The state’s tax revenue came to $4.1 million. 

This is the second time in the past nine months that the state has cleaned $2 million in tax revenue. The previous all-time high for tax revenue was set in November 2021, when the state brought in $3.1 million. 

Since launching in November 2021, the state has brought in more than $16.3 million in tax revenue. And in the first five months of 2022, the state has generated nearly $10.3 million in tax revenue. 

Arizona Sportsbooks Results in May 2022

DraftKings and FanDuel are leading the charge in Arizona. FanDuel is the leader in handle and gross gaming revenue in May. 

With $148 million in mobile handle and $23 in mobile GGR, FanDuel has a small lead on DraftKings. DraftKings is only a few million behind in handle, moving $141 million in May. The company lags further behind in GGR, where it pulled in $14 million.

FanDuel’s retail sportsbook has been open at the Footprint Center in downtown Phoenix since September. DraftKings’ retail sportsbook plans to open at TPC Scottsdale sometime in 2023.

There are other players in the Arizona market, but none come close to touching DraftKings or FanDuel. However, BetMGM and Caesars still stand away from the rest of the pack. In May, BetMGM handled $84 million and had a GGR of $9.9 million. The BetMGM retail sportsbook is expected to open at State Farm Stadium just in time for the start of the Arizona Cardinals’ season.

Caesars has the lowest handle and GGR of the big sportsbooks, with $47 million handled and a GGR of $3.4 million. Caesars also reported a loss on the retail side of its business for the first time in Arizona. 

However, the Caesars’ retail sportsbook at Chase Field just opened in June, meaning those numbers will likely go up in the coming months.

 

Photo by Zac BonDurant/Icon Sportswire

Author: Maureen Cook