Arizona sports betting revenue tops $500 million in January

(KYMA, KECY/ AP News) - Arizonans haven’t stopped embracing the state’s entry into legalized sports betting, plopping down $564 million in January wagers.

Of that $564 million, $522 million were won back. The vast majority of bets coming through online apps licensed to the state’s pro sports teams and Native American tribes.

The monthly Department of Gaming report on results from the fifth month of legalized wagering on sports showed the 12 online operations and two brick and mortar sports books made just over $40 million after federal taxes.

But they did give away more than $20 million in free bets. That left just $19.6 million subject to state taxes, which totaled $1.9 million.

The free bet credits, designed to lure gamblers, phases out over several years so more income will gradually pour in each year.