Arizona Sports Betting Revenue Insights: Trends and Analysis of 2024

11 min read
Dec 11, 2024, 6:06 PM

Arizona Sports Betting Overview

Arizona officially launched legal sports betting on September 9, 2021, coinciding with the start of the NFL season. Arizona Governor Doug Ducey signed House Bill 2772 into law, allowing tribal gaming operators and professional sports franchises to participate in the state's sports betting market. The legislation authorized up to 20 licenses, split evenly between retail facilities operated by Class III gaming tribes and online operators.

Arizona's sports betting handle surpassed expectations in its first full calendar year with a massive $1.74 billion. From the first month of operations, Arizona had already started breaking records. In its first full month, September 2021, Arizona saw a sports betting handle of $291 million in bets—marking the highest debut for legal sports betting ever.

There are 12 online Arizona sportsbooks, including prominent brands like FanDuel, DraftKings, BetMGM, BetRivers, and Caesars. From September 2021 until September 2024, they have generated a staggering total handle of over $21.4 billion (Arizona Department of Gaming, 2024).

The Arizona Department of Gaming (ADG) oversees all operations, ensuring compliance and maintaining market integrity. Arizona sports betting revenue is subject to a tax rate of 8% for retail sportsbooks and 10% for online betting, with contributions to state Education, Emergency Services, Wildlife, and Tourism budgets. Arizona has collected over $69.6 million in tax revenue in its first three years of operation (ADG, 2024).

Arizona’s sports culture is another factor fueling its success. Professional teams like the Arizona Cardinals (NFL), Phoenix Suns (NBA), Arizona Diamondbacks (MLB), and Arizona Coyotes (NHL) have dedicated fanbases. The state’s strong collegiate presence, including the University of Arizona Wildcats and Arizona State Sun Devils, further boosts wagering activity.

Many of these teams and leagues partnered with Arizona sportsbooks. Some examples:

  • BetMGM became the Arizona Cardinals' official sports betting partner (BetMGM, 2021).
  • The Arizona Diamondbacks and Caesars Sportsbook sign a sports betting agreement (MLB.com, 2021).
  • FanDuel and the Phoenix Suns partnered and established the FanDuel Sportsbook Lounge, a 6,300 sq. ft. lounge dedicated to sports betting (TheStadiumBusiness, 2021).

By the end of 2023, Arizona had established itself as a leader in the sports betting market, with total handle and gross revenue figures outperforming initial projections. As the market matures, Arizona bettors can expect expanded options from operators, further expanding the state's sports betting sector. 

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Annual Sports Betting Growth in Arizona

Monthly Sports Betting Growth in Arizona

2023

Arizona Sports Betting Handle and Revenue

Since launching legal sports wagering in September 2021, Arizona has emerged as one of the most dynamic and fast-growing markets in the United States. According to the Arizona Department of Gaming, the state’s sports betting handle and gross revenue have demonstrated steady year-over-year growth, driven by the robust participation of Arizona bettors and the expansion of both retail and online sportsbooks.

Sports Betting Handle and Revenue Trends

Arizona reported a handle of $1.74 billion in its first full year of operations, with $59.6 million in adjusted gross revenue. Arizona collected $5.96 million in tax revenue for the state's general fund. This initial performance laid a solid foundation for the sports betting market in the Grand Canyon State.

By 2022, the handle skyrocketed to $6.04 billion, reflecting the growing popularity of sports betting and the dominance of mobile operators. Adjusted gross gaming revenue increased significantly to $289.1 million, while tax revenue rose to $28.9 million, demonstrating the impact of Arizona sports betting revenue on state funding.

In 2023, Arizona sports betting reached a new milestone with a handle of $6.57 billion, marking a year-over-year increase of 8.9%. Revenue climbed to $348.2 million, with tax contributions totaling $34.8 million. The hold percentage, or the share of total wagers retained as revenue by sportsbooks, also rose from 4.85% in 2022 to 5.47% in 2023, reflecting increased efficiency among operators.

From January to August 2024, Arizona’s sports betting market continued its strong performance through the first eight months of 2024:

  • Total Handle: $4.69 billion
  • Gross Revenue: $280.12 million
  • Tax Revenue: $27.91 million
  • Average Hold Percentage: 6.07%

Latest Updates in Arizona's Sports Betting Sector

  • September 12, 2024 — Through a collaboration between BetMGM and GameSense, State Farm Stadium will feature responsible gambling messages throughout the NFL season (BetMGM, 2024).
  • August 15, 2024 — Arizona’s sports betting handle rebounded to $151.4 million, marking an increase of 17.1% from July’s $129.3 million. The hold percentage for August dropped to 8.02%, reflecting a slight shift in operator performance (ADG, 2024).
  • August 7, 2024 — Two new sports betting operators, Plannatech and Sporttrade, have been granted licenses by the Arizona Department of Gaming, expanding the state’s sports wagering landscape (ADG, 2024).
  • July 31, 2024—Betway Sportsbook announced that it is ceasing operations in Arizona and no longer accepting bets. Existing customers can access their accounts for withdrawals only (Betway, 2024).
  • July 22, 2024 — SuperBook declared it would halt deposits, new registrations, and wagering in Arizona. Current users can still process withdrawals, marking the sportsbook as the fourth operator to exit the state within a month (iGamingBusiness, 2024).
  • July 3, 2024 — The state’s handle declined to $129.3 million, down from June’s $150.3 million, representing a 14% decrease. Revenue held steady with an 11.94% hold percentage, showcasing operator resilience amidst reduced wagering activity (ADG, 2024).
  • June 2024 — Arizona recorded a handle of $150.3 million, a decline of 17.1% compared to May. Gross revenue also fell to $15.8 million, with a 10.49% hold percentage, as betting activity slowed entering the summer months (ADG, 2024).

Legal Sportsbooks in Arizona

As of December 2024, Arizona offers 12 legal online sportsbooks, each providing unique features and betting options:

  1. Bally Bet: Partnered with the WNBA's Phoenix Mercury, Bally Bet offers a range of sports betting options (Phoenix Mercury, 2024).
  2. Bet365: Known for its extensive international market coverage, Bet365 is a prominent player in the Arizona sports betting scene.
  3. BetMGM: Associated with the Arizona Cardinals (NFL) and Gila River Casinos, BetMGM provides a comprehensive sportsbook experience with various betting markets (Gila River, 2021).
  4. BetRivers: BetRivers offers a variety of betting options and is recognized for its promotional credits for free bets.
  5. Caesars Sportsbook: Partnered with the Arizona Diamondbacks (MLB), Caesars Sportsbook delivers a wide array of betting markets and promotional offers (MLB.com, 2021).
  6. DraftKings: Associated with TPC Scottsdale, DraftKings provides a robust sportsbook platform with numerous betting options and daily fantasy sports integration (DraftKings, 2024).
  7. ESPN BET: Leveraging ESPN's brand recognition, ESPN BET was a major addition to the Arizona gambling sector.
  8. Fanatics Sportsbook: Fanatics Sportsbook partnered with the Tonto Apache Tribe and Mazatzal Hotel & Casino For Arizona Sports Betting (Fanatics, 2024).
  9. FanDuel: Partnered with the Phoenix Suns (NBA), FanDuel provides a sportsbook experience with various betting options (TheStadiumBusiness, 2021).
  10. Golden Nugget: Golden Nugget offers a range of betting markets for users interested in both casino games and sports betting.
  11. Hard Rock: Associated with the Navajo Nation, Hard Rock provides a sportsbook mobile betting app with various betting options and promotional offers.

Retail Sportsbooks in Arizona

Arizona features several retail sportsbooks operating within casinos and sports venues statewide. These establishments provide in-person wagering experiences for sports bettors:

  1. Bally Bet: Partnered with the Phoenix Mercury, offering sports betting services within the team's facilities.
  2. Betfred: Associated with the Fort McDowell Yavapai Nation, providing a retail sportsbook at the We-Ko-Pa Casino Resort.
  3. BetMGM: In collaboration with the Arizona Cardinals, BetMGM operates a sportsbook at State Farm Stadium in Glendale.
  4. Caesars: Partnered with the Arizona Diamondbacks, Caesars runs a sportsbook at Chase Field in Phoenix.
  5. FanDuel: Working with the Phoenix Suns, FanDuel manages a sportsbook at the Footprint Center in Phoenix.
  6. Desert Diamond Mobile LLC: Partnered with the Tohono O’odham Nation, operating sportsbooks at Desert Diamond Casinos in Tucson, Sahuarita, and West Valley.

Challenges and Opportunities

Despite its success, Arizona's sports betting market faces several challenges. The entry of numerous operators has intensified competition, leading to market saturation and reduced profit margins. Additionally, the rapid growth of sports betting raises concerns about problem gambling and its impact on vulnerable populations, including college students and athletes (Cronkite News, 2024).

However, Arizona's sports betting market offers many opportunities. The state's strong sports culture provides a strong foundation for betting activities. Strategic partnerships between sports leagues and betting companies have enhanced fan engagement and opened new revenue streams.

While Arizona's sports betting market is poised for continued growth, addressing competition, regulatory compliance, and responsible gambling challenges is crucial to ensure sustainable development.

Arizona Snapshot

Key AspectDetails
PopulationApproximately 7.5 million residents as of 2024. (World Population Review, 2024)
Political AffiliationArizona is a traditionally Republican-leaning state but has shown signs of becoming more competitive in recent elections. It currently has a Democratic governor and a Republican-controlled legislature. Arizona voted Republican in the most recent presidential election. (270towin.com, 2024)
Year Sports Betting LegalizedOn April 12th, 2021, the state Senate passed the betting bill HB 2772, and Gov. Doug Ducey signed it into law.  (Arizona Department of Gaming, 2024)
Number of Sportsbooks OperatingThere are 12 online sportsbooks: Bally Bet, Bet365, betMGM, BetRivers, Caesars Sportsbook, DraftKings, ESPN BET, Fanatics Sportsbook, FanDuel, Golden Nugget, Hard Rock, and TwinSpires
Gross Gaming Revenue (GGR) 2023$348,185,390
Sports Betting Handle 2023$6,573,800,272
Professional Sports TeamsArizona is home to several professional sports teams, including the Arizona Cardinals (NFL), Phoenix Suns (NBA), Arizona Coyotes (NHL), Arizona Diamondbacks (MLB), and Phoenix Rising FC (USL Championship).

FAQs on Arizona Sports Betting Revenue

Arizona Sports Betting Basics

When did Arizona legalize sports betting?

The Grand Canyon State legalized sports betting on September 9, 2021, coinciding with the start of the NFL season. This followed the passage of House Bill 2772, which permitted both tribal gaming operators and professional sports franchises to participate in the market.

Who regulates Arizona's sports betting market?

The Arizona Department of Gaming oversees all operations, ensuring compliance with state regulations and maintaining the integrity of betting activities across online platforms and retail locations.

What types of sports betting are allowed in Arizona?

Arizona allows both retail revenue from sportsbooks located in casinos and sports venues and online wagering, offering diverse options for bettors statewide.

Adjusted Gross Revenue and Taxes

How much tax revenue has Arizona generated from sports betting?

Since launching in September 2021, Arizona has generated over $80 million in tax revenue.

What percentage of Arizona's sports betting revenue goes to taxes?

Arizona imposes an 8% tax rate on retail sports betting and a 10% tax rate on online sports betting.

What was Arizona’s tax revenue in 2023?

In 2023, Arizona collected approximately $34.8 million in tax revenue.

How much tax revenue has Arizona generated in 2024 so far?

From January to August 2024, Arizona collected $27.91 million in tax revenue, with the highest monthly contribution being $4.61 million in January.

Where is Arizona’s sports betting revenue allocated?

Tax revenue is directed to the state’s general fund, supporting public services like education, emergency services, and infrastructure improvements.

Operators and Platforms

How many sportsbooks operate in Arizona?

Arizona currently hosts 12 legal online sportsbooks, including recent launches like Fanatics Sportsbook and ESPN Bet. These join established operators such as DraftKings, FanDuel, and BetMGM, ensuring competitive offerings for bettors.

Which operators have partnerships with Arizona sports teams?
  • BetMGM partners with the Arizona Cardinals.
  • FanDuel collaborates with the Phoenix Suns.
  • Caesars is associated with the Arizona Diamondbacks.
How does Arizona compare to other states in the sports betting market?

Arizona ranks third place nationally in wagers and revenue, following only larger markets like New York and New Jersey.

Betting Trends and Activity

What was Arizona’s sports betting handle last year?

In 2023, Arizona reported a handle of $6.57 billion, reflecting a year-over-year increase of 8.9% compared to last year.

Which events drive the most betting activity in Arizona?

Major events like the NFL season, March Madness, and the Super Bowl contribute to peak activity, with notable spikes in wagers and winnings during these periods.

How frequently do bettors engage with Arizona sportsbooks?

Activity fluctuates throughout the week, with weekends often seeing higher betting revenue due to professional and college sports schedules.

Future Outlook

What is the future of sports betting in Arizona?

Arizona’s market is poised for continued growth, with operators vying for the top spot in market share. Innovations in online wagering and new operator entries are expected to further expand the market.

What challenges does Arizona face in maintaining its growth?

Challenges include increasing competition among sportsbooks, ensuring compliance with regulations, and addressing concerns about responsible gambling while managing money effectively to sustain growth.

How does Arizona maximize betting opportunities?

By leveraging partnerships with professional sports teams and offering a mix of online platforms and retail sportsbooks, Arizona ensures a balanced approach to meeting bettor demand and driving consistent revenue.