Q1 Revenue Insights
PHOENIX, Ariz. - July 1, 2025
Arizona’s sports betting market kicked off 2025 with record-setting activity, as total wagering hit $2.45 billion in Q1, a 19% increase over the same period last year. But as the betting volume surged, sportsbook margins dipped, resulting in $117.9 million in gross gaming revenue (GGR) and $11.79 million in taxes collected for the state.
Despite the narrowing hold percentage, Arizona continues to demonstrate strong momentum, driven by expanding mobile usage and steady operator performance.
📊 Q1 2025 Arizona Sports Betting Performance
| Month | Handle | GGR | Hold % | Tax Revenue |
|---|---|---|---|---|
| Jan 2025 | $864.2M | $53.18M | 6.15% | $5.32M |
| Feb 2025 | $699.7M | $39.81M | 5.69% | $3.98M |
| Mar 2025 | $887.4M | $24.92M | 2.81% | $2.49M |
| Total | $2.45B | $117.9M | 4.81% avg | $11.79M |
📈 How Q1 2025 Compares to Previous Years
Arizona’s market has grown steadily since its 2021 launch. Here’s how Q1 performance stacks up year over year:
| Year | Q1 Handle | Q1 GGR | Avg Hold % | Q1 Tax Revenue |
|---|---|---|---|---|
| 2022 | $1.75B | $44.88M | 2.51% | $4.49M |
| 2023 | $1.85B | $81.99M | 4.43% | $8.20M |
| 2024 | $2.10B | $111.83M | 5.32% | $11.18M |
| 2025 | $2.45B | $117.9M | 4.81% | $11.79M |
While 2025 saw the highest-ever Q1 handle, the average hold percentage decreased slightly from 2024. March’s particularly low hold (2.81%) pulled down the quarterly average.
Operators in The Grand Canyon State
Arizona’s top-tier sports betting market features 12 licensed operators, split among national giants and tribal-licensed platforms:
- Bally Bet
- Bet365
- betMGM
- BetRivers
- Caesars Sportsbook
- DraftKings
- ESPN BET
- Fanatics Sportsbook
- FanDuel
- Golden Nugget
- Hard Rock
- TwinSpires
These operators compete fiercely with diverse promotions, sophisticated mobile offerings, and smooth retail options—keeping Arizona among the most dynamic betting scenes in the U.S.
