Record-breaking sports betting in Arizona exceeds $10 billion in November
The sports wagering industry in the United States reached a significant milestone in November 2022, with a record-breaking handle of $10 billion. This marks the first time the nationwide handle has surpassed the $10 billion mark since the repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018.
Several factors contributed to this impressive figure.
Legal Launch and Growth of Large Markets
States like New York legalized online sports betting in January 2022, rapidly becoming one of the largest sports betting markets with handles exceeding $2 billion per month by late 2023. Similarly, states such as Maryland, which launched online betting in November 2022, significantly contributed to handle growth.
Expansion of Mobile and Online Betting
The convenience and accessibility of mobile sports betting apps have increased consumer participation nationwide. More states authorizing online sports betting has accelerated wager volumes starting from 2020 onward.
Diverse State Engagements and Market Maturity
Multiple states, including New Jersey, Illinois, Pennsylvania, and others, have achieved large cumulative handles (billions annually) after legal launches, contributing to the aggregate national handle passing milestones like $10 billion in a single month.
Growing Sports Betting Revenue and Hold Rates
Industry reports show that hold rates and revenues are increasing, reflecting both higher total wagers and an improving market environment.
Notable Performances in November
- DraftKings claimed the handle crown for November, with a handle of over $200 million and a hold of under 6%.
- FanDuel, the only mobile operator in Arizona to post a monthly gross revenue of at least $20 million, raised the bar higher by topping $25 million in November.
- Barstool Sportsbook had a handle of over $20 million in November, the first time it reached that benchmark since January.
- Desert Diamond Mobile reached an eight-figure handle of $11 million in November, extending a meteoric rise for the second straight month.
Tax Revenue and Market Expansion
Arizona finished sixth nationally for handle in November, with a total wagered of $93.9 million. The state was eligible to levy taxes on $38.8 million in adjusted revenue, resulting in tax receipts of $3.9 million for the month.
The overall gross revenue of $56 million claimed by Arizona sportsbooks prior to deductions, promotions, and losses from some operators was a new monthly record.
Looking Ahead
The road to a $10 billion monthly handle has been a bumpy one, with November's $10 billion-plus handle being almost 72 times larger than the $139.2 million during the nadir of pandemic wagering in April 2020. As more states come online and the NFL continues to embrace wagering as part of its overall product, the national sports wagering handle is expected to continue growing.
The overall handle for the 2022 calendar year, with three reports still to be published for December, is $92.2 billion. This represents a 59.6% increase compared to the $57.8 billion wagered in 2021.
Despite some operators experiencing losses, the industry has come a long way since Nevada, Delaware, and New Jersey combined to post a handle of $310 million in June 2018. The nationwide sports wagering handle has now reached $11 figures after being legal on a state-by-state basis for less than five years.
- The entry of large markets like New York and Maryland in the sports betting industry significantly contributed to the record-breaking $10 billion handle in November 2022, following their legalization of online sports betting.
- The proliferation of mobile sports betting apps, which increased consumer participation nationwide and accelerated wager volumes, played a crucial role in the industry's growth, particularly from 2020 onward.
- Diverse state engagements, including New Jersey, Illinois, Pennsylvania, and others, have reached billions in annual cumulative handles, contributing to the aggregate national handle surpassing milestones like $10 billion in a single month.
- The sports betting industry has seen growing revenue and hold rates, with reports indicating higher total wagers and an improving market environment, as seen in November's notable performances by DraftKings, FanDuel, Barstool Sportsbook, and Desert Diamond Mobile.
- Arizona, sixth nationally for handle in November, collected tax receipts of $3.9 million from $38.8 million in adjusted revenue, demonstrating the potential for substantial tax revenue as more states come online and the NFL embraces wagering.
- The nationwide sports wagering handle has grown exponentially since the legalization on a state-by-state basis, reaching $11 figures in under five years, highlighting a significant evolution in the sports wagering industry since the industry's low point in April 2020.
