Adjusted sports betting revenue in Arizona fell to its lowest monthly total in over three years in September, despite handle reaching a near-record $851.3 million during the month.
Player spending was up 16.3% year-on-year, figures from the Arizona Department of Gaming showed. The September total was also 39.4% ahead of the $610.7 million spent in August of this year.
Of this, $847 million was bet online, while players spent $4.4 million at retail sportsbooks across the state.
As to revenue, however, adjusted gross receipts before free bet and promotional deductions reached $55 million. This, calculated after operators paid out $794.3 million in winnings, fell 28.9% short of last year and was 8.2% behind August.
After deducting $35.4 million in free bets and promotional credits, final adjusted revenue for September was $19.6 million, the lowest monthly total since July 2022. This was also 48% less than the same month last year and 53.1% behind this August.
In terms of the state’s hold, based on revenue before free bet deductions, this was 6.46%. After promotional-related deductions, hold was just 2.3%.
FanDuel still the one to beat in Arizona
As for active operators, FanDuel again led the market in September. It posted $8.5 million in adjusted revenue off $254.5 million in bets for a monthly hold of 3.34%.
DraftKings remained second with $4.3 million in adjusted revenue but with a larger handle of $270.2 million. This resulted in a September hold of 1.59%.
Not far behind in third was BetMGM, which took $4.2 million in adjusted revenue off $98.3 million in sports bets for a 4.07% hold. Caesars followed with $1.7 million from $45.5 million, resulting in a hold of 3.74%.
No other operator was able to post six-figure adjusted revenue. Fanatics, which was fourth in revenue terms in August, failed to report any revenue, while Bet365 also drew a blank for the month.
Tax-wise, sports betting generated $1.9 million for Arizona in September. All but $79,416 of this came from online betting.
Sports betting handle in Arizona was up 16.3% from last October to $851.3 million, but revenue was down.