The amount trails only the hosting Super Bowl LVII helped nudge the total to over $609 million.
Total gross revenue before any deductions totaled $53.5 million, with the adjusted gross revenue prior to deductions coming to nearly $53 million. Adjusted revenue after promotional credits were deducted and negative AGR was zeroed out resulted in $37.1 million being eligible for tax purposes, with the state claiming close to $3.7 million in privilege fees. The 8.3% hold on total gross revenue for March — still notably above the 7% industry standard — was third-lowest among 29 states offering commercial wagering for the month.
Arizona’s handle of $1.85 billion for the first quarter of 2023 was 5.7% higher than the same period in 2022, while the $82.3 million in taxable revenue was up 82.2% versus the first three months of last year. The state has collected nearly $8.2 million worth of tax receipts, up $3.7 million from the comparable span in 2022.
The report also closed the book on a record-setting quarter for NCAA Tournament in March.
National wagering for the first three months of 2023 totaled nearly $31.8 billion, while operators claimed close to $2.85 billion in gross revenue for a hold just under 9%. State taxes totaled $528.7 million, with New York ing for more than 40% of that amount — $214.6 million — by virtue of its 51% rate levied on mobile operator revenue.
FanDuel tops in handle, but bettors thrive 5x4018
FINAL March Top 10 #SportsBetting handles by state:
1 New York $1.79B
2 Illinois $1.07B
3 New Jersey $1.03B
4 Nevada $830.5M
5 Ohio $738.6M
6 Pennsylvania $723.5M
7 ARIZONA $644.76M <-NEW
8 Massachusetts $568.1M
9 Virginia $511.6M
10 Colorado $494.4M#GamblingTwitter— Chris Altruda (@AlTruda73) June 13, 2023
While February and March of last year FanDuel failed to post double-digit win rates in back-to-back months in Arizona.
Still, FanDuel remains the only mobile operator in the Grand Canyon State to eclipse $20 million in monthly gross revenue, accomplishing the feat for the sixth time overall. It also had the most promotional offerings of any online operator in March, awarding more than $5.5 million of the $16.2 million in credits received by the public.
DraftKings could take solace in setting its own gross revenue record in Arizona, narrowly clearing $15 million for the first time and posting an 8.9% win rate from $168.8 million worth of accepted bets. Much like FanDuel, DraftKings had deep pockets for promotional play, awarding $4.3 million worth of credits in March.
BetMGM had a strong bounce-back for March, as its $9.6 million in gross revenue was 81.5% higher compared to February. Its 10.9% hold was the highest among the five mobile operators who had eight-figure handles, while its handle was a comfortable No. 3 in the state at $87.5 million.
Caesars Sports also regrouped from a rough February, with its $4.9 million in gross revenue a four-fold increase. Its 8.7% win rate was more than six percentage points higher than the previous month, while the state was able to claim 10% of of nearly $3.7 million in adjusted revenue.
Local sportsbook Desert Diamond showed staying power, topping Barstool Sportsbook for the No. 5 spot in handle for the second consecutive month, though the $28.1 million in accepted wagers was 35.8% lower than February. Bettors enjoyed the wagers they did make in March, coming out nearly $1.3 million ahead. It is the second-largest monthly loss in state history, trailing the $3.2 million hit DraftKings took last June.
Barstool’s handle slipped below $20 million for the first time since October, but its 8.4% hold meant that its nearly $1.7 million in gross revenue was almost six times higher than February. It was the third-highest revenue haul for the PENN Entertainment book and the highest since a record $2.1 million in November 2021.
Desert Diamond wasn’t the only mobile book to finish March in the red, as Unibet paid out nearly $53,000 above its $684,178 handle. It was the fourth consecutive losing month for Unibet, which has lost over $85,000 to the public on $2.6 million worth of wagers in that span.
More national notes 2wn5v
All-time Top 10 #SportsBetting handles post-PASPA (thru May in CAPS):
1 New Jersey $37.5B
2 Nevada $32.5B
3 NEW YORK $24.6B
4 Illinois $22.6B
5 Pennsylvania $21.6B
6 INDIANA $12.3B
7 Colorado $12.1B
8 Michigan $10.5B
9 Virginia $10.02B
10 Arizona $9.63B (Mar)#GamblingTwitter— Chris Altruda (@AlTruda73) June 13, 2023
March’s total handle nationwide was $11.25 billion, coming within $243 million of January’s all-time record. The $1.07 billion in gross operator revenue topped January’s short-lived standard by $472,236, while the $971.5 million in taxable revenue was an all-time high by more than $49.7 million.
Those lofty revenue numbers generated more than $204 million in state taxes, also setting a new monthly benchmark by $13.8 million. Through the first three months of the year, 72 of the 87 state revenue reports published for sports wagering showed a hold above the industry standard of 7%, with 34 of them 10% or higher.
