The sports betting revenue for February, as national handle sured $10 billion in the month for the first time in the post-PASPA era.
The $637.5 million handle was up State Farm Stadium in Glendale became the first Super Bowl to be played in a state with legal commercial wagering. That ranked seventh in 30 months of wagering in the Grand Canyon State and marked the sixth consecutive month it topped $600 million.
Revenue surged 53.4% higher compared to February 2023, aided by an 8.5% hold that was 2.7 percentage points higher.
The launch of apps for betting on sports to $25.1 million. The England-based sportsbook had a $3.4 million outlay, ranking fourth among Arizona’s 17 mobile operators.
When including promotions and other deductions including the federal excise tax, the state was eligible to tax nearly $28 million in adjusted gross revenue, resulting in close to $2.8 million worth of tax receipts. The $74.1 million in AGR for the first two months of 2024 is up 64.3% compared to the same period in 2023, contributing to tax revenue being $2.9 million higher.
Nationwide handle increases 6o6e1s
Arizona’s report closed the book on commercial wagering for February in the U.S. The total known handle — Nebraska does not publish handle amounts — for the month was $11.3 billion, up 25.7% from February 2023.
The $869.6 million in known gross revenue — which does not include Tennessee — represented a 21.8% increase, and state taxes totaled $177.1 million for the shortest month of the year.
The nationwide hold for February 2024 rose slightly from 12 months prior, up less than two-hundredths of a percentage point at 7.9%. Four states launched operations in that 12-month span: Nebraska, Vermont.
Bet365 hits ground running in Arizona l6u1g
FINAL February Top 10 #SportsBetting handle by state:
1 New York $1.78B
2 New Jersey $1.08B
3 Illinois $1.07B
4 Nevada $711.9M
5 Ohio ~$672M
6 Penn. $661.7M
7 ARIZONA $637.5M
8 Virginia $545.1M
9 Mass. $542.5M
10 Colorado ~$537M#SportsBettingX #GamblingX— Chris Altruda (@AlTruda73) April 29, 2024
Much like other states it has entered over the past two years, bet365 made instant in-roads thanks to an aggressive offering of credits and bonuses. Its $24.5 million handle ranked sixth among sports betting apps and came within $2.1 million of ESPN BET for fifth.
In of performance, the England-based sportsbook finished with a 14.4% hold to claim more than $3.4 million in gross winnings.
It reported no adjusted gross revenue to the Arizona Department of Gaming, which does not disclose the full promotional spend beyond the gross revenue generated. That means the $3.4 million known outlay is likely less than the full amount of promotional credits and bonuses offered.
ESPN BET, meanwhile, outperformed its promotional spend for February, as the PENN Entertainment-run sportsbook paid state taxes in Arizona for the first time since the switchover from Barstool Sportsbook in mid-November. ESPN BET posted a 7.6% win rate in claiming $2 million in gross revenue from a $26.6 million handle. Its promo spend was $1.8 million, leaving $129,331 subject to the state’s 10% tax on mobile operators.
At the top of the list among digital sportsbooks, DraftKings were 1-2 across the board in revenue, handle, and promotional spend.
FanDuel narrowly edged over $20 million in gross winnings for the third straight month, fashioning an 8.8% hold to win $20.2 million from $230.3 million worth of wagers placed.
Its promo spend was $6.8 million, up 4.1% from last year, but the better performance in 2024 contributed to gross revenue climbing 28.9%. FanDuel also topped $5 billion in all-time handle in Arizona and moved within $6.1 million of $500 million in gross winnings.
DraftKings had a higher hold than its eternal rival, attaining a 9.6% win rate in capturing $19.7 million in gross revenue from a $206.2 million handle. Its $8.3 million in promotional spend led all mobile operators and was up 38.4% from 12 months prior. But the $10.9 million in taxable revenue was more than double the $5.2 million accrued in February 2023.
BetMGM was a clear-cut No. 3 in handle with $73.3 million, crafting an 8.3% hold in winning $6.1 million. Its $3.5 million promotional spend was also in the top three and left it with $2.4 million in taxable winnings.
Caesars slotted fourth for handle with $43.6 million,n as the public held it to a 3.5% win rate and $1.5 million in gross revenue.
In the second tier of operators, Hard Rock Bet set an all-time best for handle for the second straight month, topping $8 million for the first time. It had a hold of just 3.4%, though, with a gross revenue of only $276,000.
The top two Arizona-based sportsbooks, Desert Diamond and SaharaBets, combined to accept $6.8 million worth of bets. Sahara Bets had an all-time monthly high of $1.5 million — eclipsing its total for all of 2022 — but a 1.9% hold meant it won just $27,800. Desert Diamond notched a 3.6% win rate in claiming $190,700 worth of revenue.
SuperBook finished with its third consecutive losing month, as bettors came out $17,543 ahead on the $764,097 wagered in February. SuperBook has paid out $73,035 above the $2.9 million handle it has generated in that span and is down $47,194 through the first two months of 2024.
