Sports bettors in Arizona had a record-breaking month in November of the previous year, with licensed sportsbooks taking in more than $713.5 million in wagers. This represented the largest bet dollar amount of any month in the state, marking a significant increase from previous months.
According to the November 2023 income report published by the Arizona Gaming Department, the amount of cash invested in sports wagering exceeded the existing single-month record by a notable difference. This amount also marked an improvement of 13.6% compared to the dollars wagered on licensed sportsbooks in Arizona during November two years ago, pushing the overall sum of dollars bet for the fiscal year to $2.6 billion.
However, despite the high betting activity, sportsbooks saw a decline in their income. The blended gross winnings of every licensed bookmaker in Arizona reached over $42.3 million, which is nearly 5.9% of the dollars bet. This was a drop of nearly 24.4% from gross income of sportsbooks during November two years ago.
The decline in income was attributed to increases in promotional spending, which allowed sports wagering licensees to subtract that cost from their taxable income. Additionally, the state’s share of that cash decreased by 47.8% annually. The decrease in tax income was also seen during the first 5 months of the ongoing fiscal year, with a drop of nearly 5.7%.
Despite the record-breaking amount of wagering dollars, sportsbooks would likely want to keep additional parts of that cash in the future. The process of license application in Arizona has been reopened, meaning that gambling firms have two extra chances to obtain a license, which could lead to a short-lived increase in promotional spending.
Overall, while sports bettors in Arizona set a new betting record in November, the sportsbooks themselves have faced challenges in maintaining their income due to increased promotional spending and decreased tax income.