PHOENIX (AP) – Arizonans haven’t stopped hailing the state’s entry into legalized sports betting, losing $564 million in bets and winning back $522 million in January, the vast majority through online apps built for the state’s pro sports teams State and Native American tribes are licensed.
the Monthly Report of the Ministry of Gambling Results for the fifth month of legalized sports betting showed that the 12 online operations and two brick-and-mortar sportsbooks earned just over $40 million after federal taxes.
But they gave away more than $20 million in free bets. That left just $19.6 million for state taxes, for a total of $1.9 million. The state imposes a tax of 8% on retail bets and 10% on mobile app bets.
The free betting credits, which are intended to attract players, expire over several years. They start at 20% of gross earnings for the first two years and then decrease to 15% and then 10% before ending in the sixth year.
The other bets legalized as part of the 2021 legalization, Fantasy Sports, saw $3.9 million in gate receipts and pre-state tax profits from $431,000. The state charges 5% on fantasy sports winnings and raised just over $21,000.
Fantasy sports betting started at the end of August and sports betting in full on September 9th.
Between the launch of sports betting and the end of the year, gamblers wagered more than $1.7 billion and sports betting made about $60 million in profit. This resulted in $6.1 million in tax payments to the state.
Estimates for the amount of money the state will take in under the legalized sports betting bill signed into law by Gov. Doug Ducey in April along with updated Tribal Gaming Compacts vary widely. Legislature budget analysts estimated a little over $15 million a year, while industry advocates put the figure much higher. The bill’s sponsor, Republican Rep. Jeff Weninger of Chandler, once said it could be $100 million a year.
The newly legalized sports betting was part of a deal that allowed the state’s Native American tribes to get 10 of the available licenses and professional sports teams to get the other 10. Tribes are also vastly expanding the type of gambling they can offer at tribal casinos.
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