Arizona Sports Betting Revenue Insights: Trends and Analysis of 2025

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%

Arizona’s regulated sports betting market got off to a strong start in 2025, with January leading the way. Bettors in the Grand Canyon State wagered $864.25 million, resulting in $53.18 million in gross gaming revenue (GGR) at a 6.15 percent hold rate. Those results generated $5.32 million in tax revenue, all of which is directed toward state highways and public safety programs. 

Figures below are sourced directly from the Arizona Department of Gaming’s January report; February and March data will be added as soon as they’re published.

• 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).

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.

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.