Arizona is one of the states that benefited most from March Madness. The Arizona Department of Gaming reported a handle of $692 million, which signified a new monthly record for the Copper State.
Sportsbook Operators Set a New Record in March
The Arizona Department of Gaming reported a very strong March before the slowdown takes over in April and the summer months. Bettor winnings across the state were all but $39 million, according to the data just released.
Sportsbook operators in Arizona noted a 40.5 percent increase from February’s $491.7 million. The previous record was set back in January when bookmakers combined to bring in a solid total of $563.7 million. Unlike some other states in the sports betting industry Arizona doesn’t break down the handle by sport, but March Madness certainly took a majority of the wagers.
The Arizona Department of Gaming Director Ted Vogt stated in a press release;
“March was an exciting month for Arizona event wagering, with major sporting events like NCAA’s March Madness helping set a single month event wagering handle record.”
The gross gaming revenue also skyrocketed by 52.4 percent from February’s $37.2 million due to a hold rate of 5.6 percent. Promotional credit spending continues to play a large role for bookmakers in Arizona as they combined to give away $18.6 million in free bets.
The adjustable taxable revenue for the month was set at $18.7 million. With that, the state was able to collect $1.86 million in taxes for March, which was just short of the record of $1.9 million that was set in January.
Which Sportsbooks Led the Way in Market Share for the Month
Online sports gambling has become second nature in the Copper State as mobile operators accepted a total of $687.7 million, or 99.5 percent of the overall handle. Arizona has a low barrier to entry as 18 mobile sportsbooks, and two retail locations currently accept bets in the state.
DraftKings became the first official mobile sportsbook to bring in a handle of $1 billion since the market launched in September. It also reported a handle of $230.2 million but only had a hold rate of 3.1 percent. That led to just $7.2 million in revenue.
FanDuel held the second spot with a handle of $187.4 million. However, the operator posted the highest gross revenue total for the month of $13.4 million due to a stronger hold rate of 7.2 percent.
BetMGM made it to the top three with a handle of $133.7 million with a hold rate of 7.7 percent. That accounted for $10.3 million in revenue. Caesars rounded out the top four as the bookmaker handled a total of $95.7 million in wagers.
The top four platforms listed above accounted for 93.6 percent of the overall online market in the state. The two retail sportsbook locations brought in $3.3 million in wagers. Several other retail sportsbooks will be opening soon, including a BetMGM Sportsbook at State Farm Stadium and a DraftKings Sportsbook at TPC Scottsdale.
How will the Market Respond Post March
The sports betting industry as a whole certainly enjoyed success as the average betting volume increased for March. However, the industry expects a slow down going into the summer months.
Several states have already reported their numbers for April and noticed a steep decline in their monthly handles. The Arizona Diamondbacks are slightly under .500 but don’t attract that much attention compared to the Arizona Cardinals and Phoenix Suns. The sports betting industry will be waiting for the NFL season to begin in a few months.