Sports bettors in Arizona set a new record in November of the previous year, as they were able to legally bet online on sports in the state. Licensed sportsbooks in Arizona saw a whopping $713.5 million in wagers during that month, marking the highest dollar amount ever bet in the state. This also represents a 13.6% increase compared to two years prior, pushing the overall amount of dollars bet for the fiscal year 2024 to $2.6 billion, an 8.7% increase from the previous fiscal year.
Despite the record-breaking wagers, the income of sportsbooks took a hit, with blended gross winnings reaching over $42.3 million, nearly 5.9% of the dollars bet, which is a 24.4% drop from two years ago. As a result, the state’s share of that cash decreased by 47.8% annually.
The decrease in sports wagering tax income in Arizona was attributed to increases in promotional spending, with sports wagering licensees permitted to subtract that cost from their taxable income. With the state opening up the process of license application, two extra chances for gambling firms to obtain a license could cause a short-lived increase in promotional spending, according to PlayUSA. In November, promotional spending assisted in delivering a record sum of wagering dollars, but sportsbooks would likely want to keep more of that cash in the future.