Players bet $492 million in February, Arizona receives $670,000 in taxes
Arizonans bet nearly $492 million on sporting events in February and recouped all but $24 million of that money, a slight drop at the end of professional football except for the Super Bowl on Feb. 13. .
Tuesday’s report from the Arizona Department of Gaming on the sixth month of legalized sports betting showed that sports betting made $24.4 million in gross profits after federal taxes. But that was before they gave away $17.6 million in free bets designed to get state residents into the gambling habit under the new law signed by Republican Gov. Doug Ducey the last year.
That left $6.9 million in adjusted profits for the 18 professional sports teams and tribes that now run mobile or physical sportsbooks. The state’s take was only $670,000 in taxes. The state levies an 8% tax on retail bets and 10% on mobile app bets.
Free bets that eat away at profits and state taxes will phase out over the next few years. They start at 20% of gross receipts the first two years then drop to 15% then 10% before ending in the sixth year of legalization of sports betting.
The February figures were slightly lower than January revenue of $563 million, profit of $19.6 million after free bets and state taxes of $1.9 million.
Gaming department manager Ted Vogt said in a statement that the slight decline in betting compared to January was expected.
“Event betting levels continue to indicate a strong market in Arizona,” Vogt said in a statement. “Although there was a slight decline in betting activity, the state maintained a strong national presence during a traditionally slower sports betting month.”
The state also reported that fantasy sports betting, which was legalized as part of the 2021 legalization, brought in $1.7 million in entry fees in February and the eight operators made $160,000 in profits after paying the winners. The state charges 5% tax and brought in just under $8,900.
That was a significant drop from January, when $3.9 million in fantasy sports entry fees were paid. After the payouts, the companies made a profit of $431,000. The state’s take in January was just over $21,000.
Fantasy Sportsbooks launched in late August and Full Sportsbooks on September 9th.
Between the launch of sports betting and the end of the year, players wagered more than $1.7 billion and sports betting made about $60 million in profit. This led to taxes paid to the state of $6.1 million.
The newly legalized sports betting was part of a deal brokered by the governor’s office that allowed Native American tribes in the state to get 10 of the available licenses and professional sports teams to get the other 10. Tribes also greatly expand the type of game they can offer. in tribal casinos.