Sports betting in Arizona continued its upward trend in September 2024, with bettors placing wagers totaling approximately $732 million. This figure represents a significant year-over-year increase of about 20%, based on data recently released by the Arizona Department of Gaming (ADG). The surge underscores the state's expanding sports betting ecosystem as operators maintain robust engagement.
The state collected nearly $3.96 million in privilege fees from sports betting operators in September. These fees, derived from adjusted gross revenue, provide a vital revenue stream for Arizona. The growth signals a healthy market, showcasing the popularity of sports wagering in the state.
Fantasy Sports Operators Generate $10.95M in Adjusted Revenue
Fantasy sportscontests also played a notable role in Arizona’s gaming revenue. Operators across the state reported combined adjusted revenues of $10.95 million in September 2024. DraftKings led the charge, generating $381,298 in adjusted revenue and contributing $19,064 in privilege fees. PrizePicks followed closely, with $1.04 million in adjusted revenue and $52,107 in fees.
FanDuel, Yahoo Fantasy Sports, and Underdog Fantasy also reported substantial participation. FanDuel's adjusted revenue was $70,748, accompanied by privilege fees of $3,537, while Yahoo Fantasy Sports earned $8,311 in adjusted revenue, contributing $415 in fees. Meanwhile, Underdog Fantasy brought in $293,692, resulting in $14,684 in state fees.
’’ Bettors in Arizona wagered approximately $732 million on sports in September of 2024, according to a new report by the Arizona Department of Gaming. This represents an approximate 20% increase when compared to September of 2023.’’
Smaller operators like RealTime Fantasy Sports and Splash Sports made modest contributions to the total revenue, with privilege fees under $50 each. Despite their limited market share, their presence highlights the breadth of operators participating in Arizona's fantasy sports sector.
Context for Revenue Calculations
The revenue figures provided by fantasy sports operators reflect entry fees collected from in-state participants, less prizes paid out, adjusted for the "in-state percentage" of participation. This method ensures that operators' tax contributions align with their Arizona-specific earnings.
Overall, the $10.95 million adjusted revenue translates to approximately $90,501 in total privilege fees for Arizona, further diversifying the gaming tax base.
Arizona’s sports betting and fantasy sports sectors continue to demonstrate remarkable growth. September’s record-breaking numbers reflect a strong interest in both traditional sports betting and fantasy sports contests. As participation expands, operators are increasingly focused on offering competitive platforms to attract users.
These figures illustrate the significance of sports betting and fantasy sports to Arizona’s economy, highlighting the success of the regulatory framework established since legal wagering began in 2021. As the market matures, its sustained growth is expected to continue driving revenues for the state while providing entertainment for residents and visitors alike.
Source:
''Arizona Department of Gaming Releases September Sports Betting Figures'', gaming.az.gov, November 22, 2024.
