Arizona Sports Betting: NFL helped state generate $564 million in January

Arizona Sports Betting: NFL helped state generate $564 million in January

Arizonans haven’t stopped celebrating the state’s entry into legalized sports betting, laying down $564 million in wagers in January and winning back $522 million, the vast majority of which came from online sports betting apps licensed to the state’s professional sports teams and Native American tribal organizations.

Arizona Mobile Sports Betting

January sports betting boom in Arizona

After federal taxes, the 12 online sports betting firms and two brick-and-mortar sports bookies made little more than $40 million, according to the Department of Gaming’s monthly report on results from the fifth month of regulated sports wagering on sports. However, they handed out more than $20 million in free bets in exchange for this. There was just $19.6 million left that was liable to state taxes, which amounted to $1.9 million. Retail wagers are subject to an 8 percent tax, whereas mobile app wagers are subject to a 10 percent tax.

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Jan 2019 sports betting revenue tops $500 million

Free bet credits, which are intended to entice gamblers, are phased off over a period of several years. Beginning in the first two years, they account for 20 percent of gross receipts, before dropping to 15 percent, then 10 percent, and finally zero percent by the sixth year.

Fantasy sports, the other type of gambling that would be authorized under the 2021 legislation, brought in $3.9 million in entrance fees and profits before state taxes of $431,000. The state charges a 5 percent tax on fantasy sports income, which resulted in total revenue of somewhat more than $21,000. Fantasy sports betting went live in late August, followed by full-fledged sports betting on September 9. Between the beginning of sports betting and the end of the year, gamblers placed more than $1.7 billion in wagers, generating a profit of almost $60 million for sports bookies. As a result, the state received $6.1 million in tax revenue.

Press Release Notes

 

According to Eric Ramsey, an analyst for the PlayUSA Network, the NFL schedule was favorable to Arizona sportsbooks in January because of an extra week of regular-season games and an expanded NFL postseason that was contested over five weekends in January. The state’s rapid expansion has been attributed to a combination of favorable timing, local enthusiasm, and an attractive regulatory environment that has attracted nationally recognized sportsbook operators.

CJ Pierre, the lead analyst at PlayAZ, stated that early-to-market companies such as DraftKings and FanDuel have spent the last five months increasing their reach to new clients. As Arizona’s bettors become more familiar with less conventional products, such as live-game betting, their edge will likely grow even as the overall industry continues to expand, according to the Arizona Department of Gaming.

 

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About Lou De Aguila

Lou Ramon Aguila is a contributor for Golden Casino News. He has a degree in BSBA Legal Management with great interest in high-profile legal cases involving sports personalities. An ultimate sports junkie, he covers just about everything in the sporting world with an emphasis on the NBA, NFL, and MLB. In his past time, Lou loves to read manga, watch anime and critique pro-wrestling matches.