BetMGM’s share of Arizona sports betting declined in August for a ninth consecutive month, largely lining up with the timeline of the brand’s pullback from promotional spending.
According to the latest state report released Friday, BetMGM reached $50.5 million in online bets, down 13% from August 2022.
It is the ninth consecutive month of year-over-year handle declines for BetMGM. Its total Arizona sports betting revenue is down 17% to begin the year, too.
BetMGM reduced its promotional spending over the first eight months of 2023. It offered $25.1 million in bet credits between January and August, down from $39.5 million last year.
AZ sports betting promotional spending
Arizona bettors took $2.3 million in credits from BetMGM in August. It made up 46.5% of the operator’s $5 million in online revenue.
Since its launch in September 2021, BetMGM’s promotional spending as a percentage of revenue is the highest among the top four sportsbooks at 56%.
| Sportsbook | Online revenue | Promo spending | Percentage of revenue |
|---|---|---|---|
| BetMGM | $203.1 million | $113.1 million | 56% |
| Caesars | $87.1 million | $37.7 million | 43% |
| DraftKings | $248.7 million | $101.2 million | 41% |
| FanDuel | $359.6 million | $103.1 million | 29% |
Bet credits offered by other brands
FanDuel dished out the most free bets between January and August with $37.7 million. That is up from $26.1 million the year before. DraftKings also increased its AZ sports betting promotional spending from last year ($22.5 million) to this year ($30.8 million.)
Online revenue is up 60% in 2023 for DraftKings and 45% for FanDuel.
For Caesars Sportsbook, online revenue is down 10.5% this year, as it reduced free bet giveaways by 40.5% compared to last year.
Arizona market leaders in August
DraftKings led all sports betting apps in Arizona with $115.5 million in online August handle. It was a nearly 13% increase over July.
FanDuel was not far behind with $115.1 million bet through its app.
FanDuel claimed the most online revenue during the month at $12.2 million before deductions. DraftKings was next with $9.4 million.
Barstool down to final few months in Arizona
Barstool produced $540,000 in online revenue in August, one of its lowest monthly totals in 2023. That includes $167,000 in promos.
Penn Entertainment is currently switching to the ESPN Bet brand, which should go live in November.
Still, handle jumped 43.1% from last August to $11 million.
August financial figures in Arizona
Between online and in-person betting, the total monthly handle was $358.9 million in August.
Arizona sportsbooks cleared $30.9 million in gross revenue before deducting $9.5 million in promotional play for bettors.
Two years of Arizona sports betting
Since the market opened in September 2021, bettors wagered $11.688 billion.
Arizona is a top 10 US sports betting market.
The Grand Canyon State has collected $56.3 million in sports betting taxes in the last 24 months.
The post Arizona Sports Betting Slide Persists For Top Brand As Promo Dollars Dry Up appeared first on Legal Sports Report.
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