Cha-ching! Arizona’s first year of legalized sports betting cashes in on surprising success
In the past year since sports and fantasy gambling became legal in Arizona, more than $5 billion has been wagered.
One year ago, the flood gates opened. Arizona legalized sports betting for the first time outside tribal gaming on Sept. 9, 2021. For many, the amount of money generated has been jaw-dropping.
In the state’s full year with legal sports and fantasy gambling, more than $5 billion has been wagered. By most accounts, Arizona has more than met expectations in its inaugural stage.
“A year ago I was thinking maybe if the state is lucky, it might at some point this year hit $500 million for wagers in a single month,” said Chris Boan, lead writer for BetArizona.com. “And it’s hit that number three times and two other months it was above $490 million and was within an eyelash of that $500 million benchmark. So I think the state has performed better than, I would think, anyone really would have expected.”
If there were any qualms about legalizing sports betting in Arizona before last September, they have mostly dissipated. Even with Arizona’s early success, the state hasn’t maximized its potential profits.
After Gov. Doug Ducey signed into law companion bills from the Senate and the House, Arizona issued 20 sports betting licenses, 10 to Native American tribes and 10 to professional sports teams. All 10 tribal licenses have been awarded but only eight teams have acquired sports betting licenses under the bill, meaning there is still room for growth from the two missing licenses alone.
Maxwell Hartgraves, a public information officer for the Arizona Department of Gaming, believes that legalized sports betting has been a positive contribution to the state.
“Just from privilege fees and licensing fees we’ve had over $30 million contributed to the state general fund, so that is definitely a positive from sports betting and fantasy sports,” Hartgraves said. “Not to mention new employees, new companies coming into the state.”
Additionally, Arizona’s tax rate on sports gambling is 8% for retail revenue and 10% for online.
Arizona could also make even more money by giving additional licenses to more tribes as they are already the major contributors for the state. Limiting it to 10 licenses not only takes away potential cash for the state general fund but also limits the opportunity for the tribes to maximize gambling profits.
Then again, the tribes aren’t short on gambling money.
“Tribal gaming, for example, contributes over $100 million to the state,” Hartgraves said. “Sports betting and fantasy sports is not immediately at that level.”
Over $100 million is an understatement. From July of 2021 to June 30, tribal gaming contributed $123 million.
Rather than resting on its laurels with the money generated from the tribal side, some observers think Arizona should do what it can to maximize the profits even more. Part of what has made Arizona so successful in just one year is the state’s approach to sports betting, said B Global managing partner Brendan Bussmann.
“Arizona offered a unique model and sort of advanced on two fronts,” Bussmann said. “One that tribes would be considered on a commercial level to go statewide. And then introduced the ability for teams to have direct access to licenses in a combined format. Looking at it now a year later, I think the market continues to be a success.”
A large reason for this success is the mobile betting market. While retail sports betting reaps a few million dollars wagered every year, it does not even come close to the amount wagered through mobile.
This past March, the most popular month for sports betting, bettors wagered over $690 million in Arizona. Of that, only $3.3 million came from retail gambling.
Some states, like Nevada, have a much larger share of wagers from retail due to certain rules regarding in-person betting. It helps that Las Vegas is the casino capital of the nation. But Arizona has no such requirement and thus gets a significant proportion from online bets.
With all the success from Arizona’s first year of legalized sports betting, it’s a wonder it took so long to become legal in the first place. On the surface there doesn’t seem to be much downside – outside of the challenging efforts to legalize gambling.
Former Michigan legislator Brandt Iden believes there is more than meets the eye when it comes to gambling legislation.
“It’s a very tumultuous process. Sometimes it takes a while to get gaming done in a lot of states and it goes to show you, you’ve gotta continually work at it to get over the finish line,” Iden said.
“It’s not necessarily a timing issue in terms of how long it takes, it’s a timing issue in terms of when can you bring this legislation up. A lot of the states that we were working in for legislation in 2022 didn’t have success because it was a political year. That made it complicated.”
In election years, getting legislation through is understandably more difficult, which is why Iden believes that Arizona’s success can pave the way for more states to legalize sports betting in 2023.
“I envision we’re gonna have a lot of success in 2023,” Iden said, “and I think it’s gonna be a very busy year for gaming legislation across the country.”
In the past year since sports and fantasy gambling became legal in Arizona, more than $5 billion has been wagered.
One year ago, the flood gates opened. Arizona legalized sports betting for the first time outside tribal gaming on Sept. 9, 2021. For many, the amount of money generated has been jaw-dropping.
In the state’s full year with legal sports and fantasy gambling, more than $5 billion has been wagered. By most accounts, Arizona has more than met expectations in its inaugural stage.
“A year ago I was thinking maybe if the state is lucky, it might at some point this year hit $500 million for wagers in a single month,” said Chris Boan, lead writer for BetArizona.com. “And it’s hit that number three times and two other months it was above $490 million and was within an eyelash of that $500 million benchmark. So I think the state has performed better than, I would think, anyone really would have expected.”
If there were any qualms about legalizing sports betting in Arizona before last September, they have mostly dissipated. Even with Arizona’s early success, the state hasn’t maximized its potential profits.
After Gov. Doug Ducey signed into law companion bills from the Senate and the House, Arizona issued 20 sports betting licenses, 10 to Native American tribes and 10 to professional sports teams. All 10 tribal licenses have been awarded but only eight teams have acquired sports betting licenses under the bill, meaning there is still room for growth from the two missing licenses alone.
Maxwell Hartgraves, a public information officer for the Arizona Department of Gaming, believes that legalized sports betting has been a positive contribution to the state.
“Just from privilege fees and licensing fees we’ve had over $30 million contributed to the state general fund, so that is definitely a positive from sports betting and fantasy sports,” Hartgraves said. “Not to mention new employees, new companies coming into the state.”
Additionally, Arizona’s tax rate on sports gambling is 8% for retail revenue and 10% for online.
Arizona could also make even more money by giving additional licenses to more tribes as they are already the major contributors for the state. Limiting it to 10 licenses not only takes away potential cash for the state general fund but also limits the opportunity for the tribes to maximize gambling profits.
Then again, the tribes aren’t short on gambling money.
“Tribal gaming, for example, contributes over $100 million to the state,” Hartgraves said. “Sports betting and fantasy sports is not immediately at that level.”
Over $100 million is an understatement. From July of 2021 to June 30, tribal gaming contributed $123 million.
Rather than resting on its laurels with the money generated from the tribal side, some observers think Arizona should do what it can to maximize the profits even more. Part of what has made Arizona so successful in just one year is the state’s approach to sports betting, said B Global managing partner Brendan Bussmann.
“Arizona offered a unique model and sort of advanced on two fronts,” Bussmann said. “One that tribes would be considered on a commercial level to go statewide. And then introduced the ability for teams to have direct access to licenses in a combined format. Looking at it now a year later, I think the market continues to be a success.”
A large reason for this success is the mobile betting market. While retail sports betting reaps a few million dollars wagered every year, it does not even come close to the amount wagered through mobile.
This past March, the most popular month for sports betting, bettors wagered over $690 million in Arizona. Of that, only $3.3 million came from retail gambling.
Some states, like Nevada, have a much larger share of wagers from retail due to certain rules regarding in-person betting. It helps that Las Vegas is the casino capital of the nation. But Arizona has no such requirement and thus gets a significant proportion from online bets.
With all the success from Arizona’s first year of legalized sports betting, it’s a wonder it took so long to become legal in the first place. On the surface there doesn’t seem to be much downside – outside of the challenging efforts to legalize gambling.
Former Michigan legislator Brandt Iden believes there is more than meets the eye when it comes to gambling legislation.
“It’s a very tumultuous process. Sometimes it takes a while to get gaming done in a lot of states and it goes to show you, you’ve gotta continually work at it to get over the finish line,” Iden said.
“It’s not necessarily a timing issue in terms of how long it takes, it’s a timing issue in terms of when can you bring this legislation up. A lot of the states that we were working in for legislation in 2022 didn’t have success because it was a political year. That made it complicated.”
In election years, getting legislation through is understandably more difficult, which is why Iden believes that Arizona’s success can pave the way for more states to legalize sports betting in 2023.
“I envision we’re gonna have a lot of success in 2023,” Iden said, “and I think it’s gonna be a very busy year for gaming legislation across the country.”
CHAMBER STRONG
Frequently Asked Questions
Schedule a Membership Appointment
One-Minute Membership Assessment Survey
Join Now
The primary news source for this page is
The Phoenix Business Journal
Frequently Asked Questions
Schedule a Membership Appointment
One-Minute Membership Assessment Survey
Join Now
The primary news source for this page is
The Phoenix Business Journal
Lagoon Water Park, Entertainment Venue Headed to West Valley.... A new regional tourism asset for the NW Valley!
A beach party in Arizona might not be such a wacky idea in a couple of years because the West Valley will soon be home to an 11-acre beach lagoon, planned to include scuba diving, windsurfing and water jet packs as part of a 48-acre entertainment destination. TV News Story The planned project be near the Westgate Entertainment, near E 95th Avenue and Cardinals Way, near the State Farm Stadium. The developer of the project is ECL Glendale LLC. Crystal Lagoons Island Resort, will have a similar feeling to Downtown Disney, with experiential retail, amusement park rides, a 4D theater, a themed hotel and other hotel uses on the site. The project will also include an “aero bar,” a bar in the middle of the lagoon on a vertical structure that becomes elevated 135 feet in the air so patrons can get a 360-degree view. It also will include the world’s largest helium balloon. The balloon will be on a tether with a gondola that raises riders 400 feet in the air. The 4D theater will incorporate sensory elements like smell, temperature or moisture into the viewers’ experience. The theater will be in conjunction with SimEx-Iwerks Entertainment, which has access to Disney proprietary character and products. |
Industrial Construction Report
Phoenix is on track for a record level of new industrial supply to be completed in 2020, but so far new supply has outpaced demand, according to CoStar research. According to data compiled by Jessica Morin, director of market analytics for CoStar “Phoenix ranks ninth for U.S. markets with the most industrial space under construction. When the space under construction is completed, it will expand the market’s existing stock by 3.1%. That being said, Glendale and Goodyear have the most space under construction as compared to their existing space. Glendale will add about 40% to its inventory and Goodyear will add about 20% when the space under construction is completed. Nationwide, industrial net absorption was forecast to remain negative through the remainder of 2020 and into the beginning of 2021, according to a study done by NAIOP. However, Arizona has not seen the steep decline some other markets have suffered, Suzanne Kinney, president and CEO of the Arizona chapter of NAIOP said. “There have been a handful of large deals that have gone our way,” Kinney said, adding that several manufacturers have recently moved or expanded in Phoenix recently, and users like food and beverage makers are also growing in the area. Some of the growth, such as the pivot by Honeywell in Phoenix to make personal protective equipment, were directly related to the Covid-19 pandemic, Kinney said, but other moves were “a continuation of the positive trends we’ve seen over the past few years.” |
PPP Loans helped nearly 1,500 local businesses
A new Surprise Regional Chamber of Commerce report showed almost 1,500 small businesses in the Northwest Valley have received $155 million in PPP loan assistance.
Based the Chamber’s latest data, the PPP loans helped to retain 6,879 workers in the region (El Mirage, Sun City, Sun City West, Surprise, Waddell and Youngtown.) However, several small businesses in Surprise and surrounding areas are still suffering from the COVID-19 slowdown and waiting for Congress to act on additional bailout money.
“When the previous bailout programs were rolled out there was much confusion and turbulence, and small businesses did not initially fair well,” Chamber President and CEO Raoul Sada said. “The Chamber wants to do its part, making sure that does not happen again, and we are lobbying Capitol Hill for a packages that favor small businesses.”
Key Points:
•The SBA has just released a massive trove of data on PPP loans. This was a significant step forward in transparency by the government, prior to this the SBA resisted requests to share the recipients of the funds. This is why it is so important for the Chamber to hold government officials accountable, and for us to demand transparency at all levels of government (local, state and federal!)
•More than 81,000 Arizona businesses and nonprofits have received forgivable loans through the federal government's Paycheck Protection Program totaling $8.6 billion, according to the U.S. Small Business Administration.
•The Paycheck Protection Program, which was designed to avert mass layoffs during the Covid-19 pandemic.
•PPP loans are not made by SBA. PPP loans are made by lending institutions and then guaranteed by SBA.
•According to the data, 58 businesses in Arizona received between $5 and $10 million, the maximum amount allowed under the program. But the vast majority of loans, approximately 86%, are valued under $150,000.
•Close to 1500 small businesses received PPP loans in the six cities that make up the Chambers service territory. The amount of cash infused into our local economy was over $154 million dollars! Based on application data, the loans help to retain 6,879 workers in our region.
•Approximately 42 businesses were non-profits (2.8% of the recipients)
Based the Chamber’s latest data, the PPP loans helped to retain 6,879 workers in the region (El Mirage, Sun City, Sun City West, Surprise, Waddell and Youngtown.) However, several small businesses in Surprise and surrounding areas are still suffering from the COVID-19 slowdown and waiting for Congress to act on additional bailout money.
“When the previous bailout programs were rolled out there was much confusion and turbulence, and small businesses did not initially fair well,” Chamber President and CEO Raoul Sada said. “The Chamber wants to do its part, making sure that does not happen again, and we are lobbying Capitol Hill for a packages that favor small businesses.”
Key Points:
•The SBA has just released a massive trove of data on PPP loans. This was a significant step forward in transparency by the government, prior to this the SBA resisted requests to share the recipients of the funds. This is why it is so important for the Chamber to hold government officials accountable, and for us to demand transparency at all levels of government (local, state and federal!)
•More than 81,000 Arizona businesses and nonprofits have received forgivable loans through the federal government's Paycheck Protection Program totaling $8.6 billion, according to the U.S. Small Business Administration.
•The Paycheck Protection Program, which was designed to avert mass layoffs during the Covid-19 pandemic.
•PPP loans are not made by SBA. PPP loans are made by lending institutions and then guaranteed by SBA.
•According to the data, 58 businesses in Arizona received between $5 and $10 million, the maximum amount allowed under the program. But the vast majority of loans, approximately 86%, are valued under $150,000.
•Close to 1500 small businesses received PPP loans in the six cities that make up the Chambers service territory. The amount of cash infused into our local economy was over $154 million dollars! Based on application data, the loans help to retain 6,879 workers in our region.
•Approximately 42 businesses were non-profits (2.8% of the recipients)
Surprise Independent News Coverage
|
|
Chamber’s NW Valley COVID-19 Consumer Survey Results Are In
Survey Results Make the Paper-Click Here to Read the Article Consumers, not the government, will ultimately decide when the economy will open—that is why it is important for citizens and businesses to know what people are thinking. Please share your comments on our Facebook page! Government leaders and public health officials will make decisions, and issue guidance on when we return to work, but truly regaining some semblance of normalcy will be determined by how people feel and what motivates them to act or not act. The Chambers recent survey sheds more light about what consumers are thinking in the NW Valley . Share your comments on our Facebook page Take Our 1-Minute Survey |
Business COVID-19 Survey Results
Survey Makes Front Page of Surprise Independent- Read the Story
CEOs across the globe are coming to terms with the reality that business will be anything but normal over the coming months as the impact of the coronavirus pandemic continues to escalate.
But while revenues are set to suffer a short-term hit, the majority of leaders remain confident that their companies will be back on solid footing within the year, according to a new study on the business impact of the outbreak of COVID-19.
The survey results found that 82% of business leaders expect declines in revenues over the next six months, but more than half (54%) anticipate revenues will be back to normal in a year’s time. And 61% of CEOs expect their total fixed investments to remain unchanged year on year.
How Business Owners are Responding
Among the industries seeing the greatest impact from the fallout are hospitality and travel (89%), education (87%) and media and entertainment (80%). Meanwhile, production firms in agriculture, factories, mines and utilities reported some uptick in revenues.
Nevertheless, business leaders across the board (95%) said they’re taking new measures curb the impact of the virus. That includes communicating more regularly with employees (68%), adopting new health and safety procedures (67%), cancelling major events (64%) and halting business travel (53%).
Meanwhile, other respondents, when asked for their advice for business leaders, recommended the following:
Citation: The Survey was conducted by YPO a global leadership community of more than 29,000 chief executives in 130 countries. Full Press Release
Survey Makes Front Page of Surprise Independent- Read the Story
CEOs across the globe are coming to terms with the reality that business will be anything but normal over the coming months as the impact of the coronavirus pandemic continues to escalate.
But while revenues are set to suffer a short-term hit, the majority of leaders remain confident that their companies will be back on solid footing within the year, according to a new study on the business impact of the outbreak of COVID-19.
The survey results found that 82% of business leaders expect declines in revenues over the next six months, but more than half (54%) anticipate revenues will be back to normal in a year’s time. And 61% of CEOs expect their total fixed investments to remain unchanged year on year.
How Business Owners are Responding
Among the industries seeing the greatest impact from the fallout are hospitality and travel (89%), education (87%) and media and entertainment (80%). Meanwhile, production firms in agriculture, factories, mines and utilities reported some uptick in revenues.
Nevertheless, business leaders across the board (95%) said they’re taking new measures curb the impact of the virus. That includes communicating more regularly with employees (68%), adopting new health and safety procedures (67%), cancelling major events (64%) and halting business travel (53%).
Meanwhile, other respondents, when asked for their advice for business leaders, recommended the following:
- Focus on the facts
- Communicate regularly with employees and stakeholders/customers
- Stabilize supply chains
- Make short-term and long-term plans
Citation: The Survey was conducted by YPO a global leadership community of more than 29,000 chief executives in 130 countries. Full Press Release
First-Ever Scorecard Released
Who Made the List? Our first-ever scorecard evaluates the votes of each state senator and representative and represents the positions of the West Valley Chamber Alliance that were communicated to our state lawmakers throughout the 2019 Regular Session. The scorecard helps the business community know where their elected officials stand on issues that affect us all. Click Here for Full Report
The Surprise Regional Chamber of Commerce (Districts 13, 21 and 22) would like to recognize Rick Gray, Frank Carroll, Tim Dunn and Joanne Osborne for having 100% scores in support of pro-business policies.
As a Chamber, we commend those elected leaders with scores above 80% and recognize them as Free Enterprise Champions for recognizing the vital role businesses play and supporting those businesses through common sense, pro-business, and growth-oriented public policy. All elected officials in Districts 13, 21 and 22 earned the Free Enterprise Champion designation which included Rick Gray, Ben Toma, Frank Carroll, Kevin Payne, Tony Rivera, David Livingston, Tim Dunn, Joanne Osborne and Sine Kerr.
Chamber1
|
|
|