Arizona Revenue Insights
Arizona Sports Betting Overview
Arizona launched legal sports betting on September 9, 2021, aligning with the NFL season kickoff. Under House Bill 2772, the state authorized up to 20 licenses, split between tribes and professional sports franchises.
In its first full year, Arizona recorded a $1.74 billion handle, including a record-setting $291 million in its first full month, then the highest debut in U.S. history. By 2024, total handle reached $6.21 billion, driven by 12 active online sportsbooks and several retail operators.
The Arizona Department of Gaming (ADG) regulates the market, applying an 8% tax on retail and 10% on online bets. The state has collected over $69.6 million in taxes through 2024, supporting education, emergency services, and tourism.
Major pro teams, including the Cardinals, Suns, and Diamondbacks, have partnered with sportsbooks like BetMGM, FanDuel, and Caesars, helping make Arizona one of the strongest U.S. markets.
Interested in how different operators compare? Read our in-depth reviews of businesses in Arizona.
Annual Sports Betting Growth in Arizona
Data is pulled directly from the Arizona Dept. of Gaming Annual Reports
Source:
RG
Monthly Sports Betting Growth in Arizona
Data is pulled directly from the Arizona Dept. of Gaming Monthly Reports
Source:
RG
Arizona Sports Betting Revenue Performance
Arizona’s legal sports betting market has shown strong, steady growth since launching in late 2021. Mobile platforms dominate activity, with hold rates and tax contributions climbing annually.
| Period | Handle | Gross Revenue | Hold % | Tax Revenue |
|---|---|---|---|---|
| 2021 (partial) | $1.74B | $59.55M | 3.12% | $5.96M |
| 2022 | $6.04B | $289.15M | 4.85% | $28.91M |
| 2023 | $6.57B | $344.28M | 5.47% | $34.82M |
| 2024 | $6.21B | $365.42M | 5.70% | $34.43M |
| Q1 2025 | $2.45B | $117.90M | 4.81% | $11.79M |
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).
Arizona Snapshot
| Key Aspect | Details |
|---|---|
| Population | Approximately 7.5 million residents as of 2024. (World Population Review, 2024) |
| Political Affiliation | Arizona 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 Legalized | On 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 Operating | There 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) 2025 (Jan-Mar) | $117,904,022 |
| Handle 2025 (Jan-Mar) | $2,451,342,764 |
| Professional Sports Teams | Arizona 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
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.
