PHOENIX — It has been one year since sports betting was legalized in Arizona.
In just 12 months Arizonans have wagered nearly $4.8 billion – $4,774,534,064.30 to be specific.
“We were actually the second fastest state in the nation to reach a billion dollars in total wagers,” said Max Hartgraves, a spokesperson with the Arizona Department of Gaming. “Outside New York, we were the fastest.”
“Once it became legal I just really got kind of into it and all my friends got into it,” said Hunter Ashton, an avid sports bettor, who recently got a job with Bet MGM.
“I think it's definitely exceeded everyone's expectation,” said Christopher Boan, an analyst for BetArizona.com.
According to the state, here is a breakdown of the first legalized year of sports betting:
-Total Wagers: $4,774,534,064.30 ($4.8b)
-Total Payouts: $4,408,716,844.10 ($4.4b)
-Privilege Fees: $16,911,497.59 ($16.9m)
-Licensing Fees: $14.2m
The privilege fees paid out to the state are a small portion of the $365 million in profits, because of Arizona’s contract and agreement with the 18 sportsbook operators.
“So a big part of that is…operators can write off free bets…I believe for the first few years,” said Boan. “But once that ends, we will see the state’s tax number go up...projections are showing upwards, closer to 40 or 50 million in tax revenue by 2024.”
Arizona also agreed to tax the sportsbooks’ profits less than some other states.
Arizona’s tax rate for sports betting revenue is 10%, whileother states are much higher, like New York with a 51% tax rate.
The licensing fees, which were $14.2 million in this first year, will dip in the future. A spokesperson with the state said the initial fee for sportsbooks in Arizona was $750,000 with an annual fee of $150,000 in the future.
Being responsible while betting is also important, as gambling can be addictive and costly.
“Things like setting a budget, understanding it's a form of entertainment, [and] doing it socially with your friends and your family. You know, it's not a way to make money,” said Hartgraves.
This summer, the Problem Gambling Hotline averaged 54 calls a month, 45 texts, and 10 new subscriptions between the months of April and July.
The state says 25 Arizonans also signed up for the self-exclusion program.
Arizona has a lot of resources for people struggling with a gambling addiction.
You can also reach the 24/7 confidential problem gambling helpline at 1-800-NEXTSTEP number, by texting NEXTSTEP to 53342, or by utilizing the helpline chat service on the Division of Problem Gambling website.
Arizona also subsidizes treatment for individuals or anyone affected by a problem gambler (family, friends, co-workers, employers) through the Treatment Assistance Program.
More information and resources can be found on the Division of Problem Gambling Website.
