Arizona’s general fund collected just over $1.3 million in taxes during the first two months of legalized sports betting.
That's far below the high expectations set by Gov. Doug Ducey and other proponents of the new gambling law.
Fantasy sports betting also was a bust for state coffers, bringing in just $46,000 in September and October.
The low take is due to credits sports books get for free bets they give customers to lure them into gambling on sporting events.
And only eight of 20 sports betting licenses are now being used.
Gaming Department Assistant Director Aiden Fleming says Arizona's sports betting market is already No. 5 in the nation and the market is still immature.