Sports wagering transactions in Arizona shoot up to an astounding $361 million in the month of August.
Arizona's Sports Betting Market Continues to Thrive
Arizona's sports betting market has been growing steadily since its legalization post-PASPA repeal, reflecting strong handle and revenue figures relative to other states. In August 2022 alone, the state recorded a sports wagering handle of $361 million, marking a 24.3% increase compared to July.
The growth is evident in the performance of individual operators. BetMGM surpassed $1 billion in overall sports wagering handle for the first time in August, while DraftKings held the highest handle in Arizona with $130 million. Caesars Sportsbook and WynnBET also reported handles of $30.5 million and $7.8 million respectively, placing them in the top five.
The revenue generated from sports betting in Arizona was approximately $36.3 million in August, the highest since May. Operators kept just over 10% of the handle as gross revenue, with BetMGM reporting $58.2 million and FanDuel reporting $11.5 million.
Promotional credits and deductions totaled $8.5 million in August. Notably, DraftKings' gross revenue for August was not provided.
The state is slightly more than $1.5 billion behind neighboring Nevada for fourth place in year-to-date handle. However, Arizona ranks sixth in year-to-date handle nationally, indicating its competitive position in the US sports betting landscape.
The Arizona Department of Gaming, the regulatory body overseeing this market, permits up to 16 online sportsbooks and more than 15 retail betting locations, including major venues such as State Farm Stadium and several tribal casinos.
The state earned significant tax revenue from sports betting, with roughly $27.8 million in adjusted revenue for August, making it eligible to levy taxes. In 2024, Arizona recorded approximately $7.96 billion in total sports betting handle, with monthly handles of around $864 million in January 2025 and $700 million in February 2025. This marks a consistent increase since the market launched in September 2021.
While exact nationwide rankings vary monthly, Arizona's handle of nearly $8 billion and revenue over $700 million in 2024 positions it among the larger state markets in the US sports betting landscape, especially in the West. This compares favorably to some neighboring states like Oregon, which has a more restricted market, and even Nevada, known for its long-standing but more traditional betting environment.
In conclusion, Arizona's sports betting market has been thriving since its inception, driven by a combination of online and retail offerings, strong regulatory oversight, and substantial handle compared to many US states. Its openness to multiple operators and integration with professional sports venues contribute to its competitive position nationally.
- The thriving sports betting market in Arizona has transformed into a significant financial investment opportunity, with major players like BetMGM surpassing $1 billion in overall sports wagering handle.
- Sports betting has emerged as a lucrative business venture, generating substantial revenue for operators such as BetMGM, which reported approximately $58.2 million in gross revenue in August, 2022.
- The casino-and-gambling industry, including lotteries and casino-games, has found a new avenue for growth with the increasing interest in sports betting, as evident in Arizona's market.
- Personal-finance advisors may consider sports betting as a viable business opportunity, given the promising returns shown by the market in Arizona and its potential to compete with more traditional casino environments like Nevada.
- As sports betting continues to grow, it may represent a unique area of investing within the broader finance industry, offering potential returns for those willing to wager on its continued expansion and success.
