Arizona sports betting hits near-record levels in January

In January, Arizona’s sports betting revenue reached an impressive $864.2 million, just 3.7% below the state’s all-time high.

Despite falling short of setting new records, Arizona’s sports betting sector showcased remarkable growth, achieving its second-highest monthly totals in both revenue and handle. This performance highlights the state’s burgeoning market for sports betting.

Consumer spending on sports betting in Arizona surged to $864.2 million in January, marking a substantial 22.3% increase compared to the previous year and a 1.8% rise from December 2024. However, it remains 3.7% shy of the state record of $897.6 million established in November last year.

Recent data from the Arizona Department of Gaming reveals that online betting was the primary contributor, accounting for $857.9 million of the total. Retail sportsbooks added an additional $6.3 million in wagers for the month.

Adjusted gross revenue, calculated before free bet deductions, reached $83.6 million, representing a 17.9% increase year-over-year and a 63.6% increase from the previous month. Of this total, $83.5 million came from online sources, while retail sportsbooks contributed a mere $105,099.

Free bet deductions amounted to $30.4 million in January. After these deductions, adjusted gross event wagering receipts stood at $53.2 million, reflecting a year-on-year increase of 15.2% and an impressive 106.2% jump from December. Online betting dominated this figure, with $53.1 million attributed to it, while retail receipts remained unchanged at $105,099.

In terms of hold, based on adjusted gross revenue prior to free bet deductions, the figure was 9.67%. Post-deductions, the monthly hold dropped to 6.16%.

FanDuel Maintains Market Leadership in Arizona

Analyzing the competitive landscape, FanDuel continues to dominate the Arizona market, generating $34.8 million in revenue before free bet deductions. With a handle of $287.9 million across both online and retail platforms, this resulted in a notable hold of 12.09%.

DraftKings, as the primary competitor, generated $26.5 million from a $271.8 million handle, achieving a hold of 9.75%. BetMGM rounded out the top three, securing $9.8 million from $100.4 million in bets, which translates to a 9.76% hold.

Caesars emerged as a solid contender, reporting $3.4 million from a $48.3 million handle for a 7.04% hold. Close behind was Fanatics, also at $3.4 million but from a $55.6 million handle, resulting in a 6.12% hold.

Next in line, Bet365 recorded $2.6 million from $42 million in wagering, for a hold of 6.19%. ESPN Bet was the only other operator surpassing the $1 million revenue threshold, generating $1.8 million from a $27.9 million handle and achieving a hold of 6.45%.

From a taxation perspective, Arizona collected $5.3 million from sports betting in January, with online betting contributing the entirety of this figure, taxed at 10%. Retail sportsbooks generated an additional $8,408, which is taxed at an 8% rate.

This robust performance in January underscores the ongoing growth of Arizona’s sports betting industry, highlighting both the increasing popularity among consumers and the competitive dynamics among operators. As the market continues to expand, stakeholders are well-positioned to capitalize on emerging opportunities.