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According to recent reports, the total revenue generated from online sports betting activities in the Grand Canyon State on legally permitted iGaming websites reached a state-record-breaking $77.4 million (which equates to around €73.9 million or £61.5 million).
Much of this success has been put down to the return of the National Football League (NFL), which led to increased wagering activity. It was also the second-highest handle since online sports betting on state-licensed sportsbooks was legalized in Arizona.
A cool $759.8 million all-time monthly record handle was set in March 2023 by online sports bettors, and in September, it came close at $732.1 million.
Based on these recent findings, here is a closer look at whether the online casino industry could potentially be eyeing up the state as a possibility.
In other words, the significant revenue generated from legal online sports betting activities could see online casinos one day becoming a reality here and fully legalized like in other states, such as Pennsylvania, Michigan, Delaware, New Jersey, Connecticut, West Virginia, and Rhode Island.
Is the online casino industry about to open up in Arizona?
While some say that Arizona is just one of many states that will unlikely legalize online casino gambling any time soon, others say that state authorities would be foolish not to consider the possibility at least, but only if authorities can maintain a well-structured and heavily regulated environment for citizens of one of the four Corner States.
Only sports betting sites and sweepstakes websites (also known as social gaming sites or social casinos) are legally permitted within state borders.
Which iGaming and retail betting companies generated the most revenue in September?
iGaming operators, fully licensed and regulated by the Arizona Department of Gaming (ADG), took a combined $720 million in real-money wagers from registered members, while DraftKings, Desert Diamond, and Caesars received around $12.5 million in wagers.
The ADG also reported that of these total wagers placed by customers, a total of $655.7 million was paid back as winnings, which amounted to $77.4 million in adjusted total gross receipts. Arizona sports betting operators with ADG licenses currently pay an 8% tax on retail gross receipts.
This shows that there was an impressive 28.80% year-on-year improvement compared to September 2023, which smashed the previous record of $70.9 million generated in revenue back in January 2024 – a time when the NFL playoff period was in full swing.
One of the best techniques we’ve seen these companies use has been their introduction of bonus codes. DraftKings has been a huge player in this due to their extensive use of bonus codes. It’s become such a big market we’ve ever seen affiliate sites like Casino.org pop up as a third party to analyze these, showing just how much the vertical has grown in a short time.
On a final note, these same licensees paid $35,807 in taxes to the state, taken from the $447,593 in retail revenue generated during this time after deductions were calculated.
Will the online casino industry eye up Arizona as a possibility?
The biggest players in the online casino industry that currently run legally permitted online sportsbooks will look at these figures closely and will no doubt be eyeing up the highly profitable and untapped market.
However, according to other reports, despite the significant additional revenue these operators and the state could potentially earn from legalized online casino activities, there are currently no plans in place to permit this form of wagering.
In other words, for the time being, people living in the Grand Canyon State who wish to bet online can only do so on state-licensed sports betting sites. The only other alternative is social gaming sites, which are just like regular casino sites but without the gambling part.
Poker sites are also not yet legal in the state.
To play a range of feature-rich, computer-generated online slot machines or traditional table and card games (computer-generated and live dealer), Arizona residents can join trusted brands and will receive a free digital currency that has no monetary value in the real world.
Top suggestions today include the following legally permitted sites:
- High5Casino
- Hello Millions
- Real Prize
- Stake
- WowVegas
These perfectly legit social gaming sites run on a two-coin digital currency system, and secure links to each brand’s official registration page can be found on the same trusted iGaming review site mentioned above.
These websites are widely considered the next best thing to regular online casinos. They are the safer option for people living in Arizona who are not advised to join offshore gaming sites that operate from outside Arizona’s jurisdiction.
Final thoughts
Sports betting in Arizona was legalized in April 2021 via agreements with Native American tribes, and everything comes under the watchful eye of the ADG.
Since then, revenue from online sports betting activity has steadily continued climbing. Expert analysts also project that the online casino industry would follow a similar pattern based on revenue statistics from other states where this form of online betting is legally permitted.
To place sports bets online in Arizona, you must be at least 21 years old, and if online casinos are ever legalized, the same age rule for these websites would also likely apply. We will just have to wait and see what happens and closely monitor any further developments.
Although, in public, open discussions are not being held by operators and the government-controlled gaming commission known as the ADG are not being held, authorities are likely to be having hidden talks behind closed doors about the potential of opening up the online casino industry here.
It would instantly generate a much-needed new revenue stream for the state and is something that cannot be ignored for too long.
The next phase would be to devise regulatory standards and practices like the ones that are currently in place for Arizona-licensed online sportsbooks.
