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Arizona Sports Betting Contributes Over $21 Million To State

The state’s department of gaming collected nearly $21 million in privilege fees from Arizona sports betting in its first year of operation

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Nicholaus Garcia Avatar
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Arizona sports bettors helped generate nearly $2.8 million in state taxes or privilege fees for August. As a result, Arizona sports betting has contributed over $21 million in taxes in its first full year of operation.

In a press release, Ted Vogt, director of the Arizona Department of Gaming, said he was excited by August results.

“I am excited to see such strong wagering figures for August, which is the final monthly report for Arizona’s first year of legal sports betting,. Through the first year of legal wagering, Arizona has seen over $5.4 billion wagered on sports, highlighting the strong start for the state’s new sports betting industry.”

August Arizona sports betting revenue numbers

Per Arizona law, the state receives 8% of retail sports betting adjusted gross revenue and 10% of adjusted gross revenue from mobile wagering. State fees are based on how much money the sportsbooks keep, not on wagering totals. Payouts and promotional credits are also subtracted from the handle to calculate the adjusted gross figure.

For August 2022, gamblers in Arizona wagered $361 million, translating to $2.77 million in state taxes. In of tax revenue, August 2022 was the third highest month for the 12-month period, behind the $4.1 million in May 2022 and $3.2 million in November 2021.

Through its first full year of operation, Arizona’s best month came in March when gamblers placed $691 million in bets during the NCAA basketball tournament. As a result, the state collected around $1.9 million in taxes.

More to come for Arizona

Sports betting was legalized by Gov. Doug Ducey on April 15, 2021. Retail and online sportsbooks began operations on Sept.9, 2021. Currently, there are 18 online sportsbooks including Caesars and 15 retail sportsbooks.

Arizona will be the first state with legal sports betting to host the Super Bowl. Additionally, State Farm Stadium, home of Super Bowl LVII, will be the first stadium to host the game with a BetMGM Sportsbook inside the stadium.

Nicholaus Garcia Avatar
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Nick Garcia is a senior reporter for PlayUSA. Garcia provides analysis and in-depth coverage of the gambling industry with a key focus on online casinos, sports betting and financial markets. Garcia has been covering the US gambling market since 2017. He attended Texas Tech University as an undergrad and received a Master of Arts in Journalism from Columbia College Chicago.

View all posts by Nicholaus Garcia

Nick Garcia is a senior reporter for PlayUSA. Garcia provides analysis and in-depth coverage of the gambling industry with a key focus on online casinos, sports betting and financial markets. Garcia has been covering the US gambling market since 2017. He attended Texas Tech University as an undergrad and received a Master of Arts in Journalism from Columbia College Chicago.

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