Arizona Recent Data Shows Consecutive Record Numbers

Arizona's sports betting scene is experiencing an unparalleled surge, with November 2024 marking the second consecutive month of record-breaking numbers. The state's sports betting handle—the total amount wagered by consumers—reached an impressive $897.6 million, a figure that not only eclipsed the previous month's record of $759.8 million by 18.1% but also represented a remarkable 25.8% year-over-year increase from November 2023. This continued growth underscores the rapidly expanding appetite for sports wagering in the Grand Canyon State, which has seen consistent growth since legal sports betting was introduced in 2021.

The vast majority of Arizona's sports betting activity in November came from online platforms, accounting for $890 million of the total handle. Retail sports betting, while still a part of the picture, contributed just $7.6 million to the overall total. This stark contrast between online and retail betting highlights the ongoing dominance of mobile sports betting in the state, a trend seen across much of the U.S. since the legalization of online gambling.

In terms of consumer winnings, bettors in Arizona took home a staggering $811.3 million across both online and retail channels, contributing to an adjusted gross event wagering receipt (AGWR) of $84.1 million. This figure represents an all-time high, surpassing the previous record set just two months earlier in September 2024 by 8.7%. More notably, November's AGWR nearly doubled the amount seen during the same period in 2023, reinforcing the state's ever-growing sports betting ecosystem.

FanDuel and DraftKings Dominate

When it comes to operator performance, FanDuel, the flagship brand of Flutter Entertainment, continues to reign supreme in Arizona. With a $288.6 million handle, FanDuel generated $29.9 million in AGWR, maintaining a solid 10.36% hold on its bettors. FanDuel's dominance was further evidenced by its consistent lead in the state, outpacing its competitors by a significant margin.

DraftKings, despite a slightly higher handle of $293.4 million, secured second place in terms of AGWR, with $25.7 million in revenue. This results in an 8.76% hold for the sportsbook giant, marking a slight decline compared to FanDuel's performance but still strong in the competitive Arizona market.

The third spot in revenue generation went to BetMGM, which posted $12.7 million in AGWR from a $111.6 million handle, yielding an 11.38% hold. BetMGM's impressive performance highlights its ability to maintain a solid revenue stream even with a relatively smaller handle compared to its competitors.

Other operators such as Caesars, Fanatics, Bet365, and ESPN Bet have also made their presence felt in the Arizona market. Caesars reported $4.0 million in combined revenue from both online and retail channels, while Fanatics posted $3.8 million in purely online revenue. Bet365 saw $3.2 million from online betting, and ESPN Bet contributed $2.3 million in revenue. Notably, Hard Rock Digital was the only other operator to surpass $1 million in revenue, reaching $1.4 million from its $20.4 million handle.

Free Bets and Tax Revenue Growth

A noteworthy aspect of November's record-breaking figures is the role of free bets in the state's betting landscape. Free bets issued by sportsbooks totaled $26.6 million for the month, which directly impacted adjusted gross event wagering receipts. After accounting for these free bets, Arizona's adjusted gross event wagering receipts stood at $57.5 million—an impressive 183.3% increase from the previous year.

While free bets helped fuel betting activity, the state’s tax revenues also saw significant growth. Arizona collected $5.7 million in tax revenue from sports betting in November, with almost all of that coming from online sports betting, which is taxed at a rate of 10%. Retail betting, taxed at 8%, contributed only a small fraction of the total, amounting to $57,358.

This surge in tax revenue not only reflects the growth of the sports betting market but also highlights the effectiveness of Arizona’s tax structure in capitalizing on the growing industry.
What’s Driving Arizona’s Sports Betting Boom?

Several factors are contributing to Arizona’s remarkable success in the sports betting market. The state benefits from a favorable legal and regulatory environment that has encouraged operators to launch and expand their offerings. Arizona's relatively low tax rates on sports betting and its efficient licensing process have made it an attractive destination for sportsbooks looking to tap into a lucrative market.

Additionally, Arizona’s strong sports culture, anchored by professional teams like the Arizona Cardinals (NFL), Phoenix Suns (NBA), and Arizona Diamondbacks (MLB), provides a ready-made audience for sports betting. The state also benefits from a large, tech-savvy population that is increasingly inclined toward mobile and online betting, further boosting the market's growth.

 

Arizona’s sports betting market continues to thrive, with November’s record-breaking figures demonstrating the state’s growing dominance in the industry.

Looking Ahead

As Arizona continues to break records, the state’s sports betting market shows no signs of slowing down. The strong performance in November 2024 suggests that consumer interest in sports betting will remain robust throughout 2025. However, the competition among operators is expected to intensify, with FanDuel and DraftKings continuing to battle for market share while smaller operators such as BetMGM, Caesars, and newer entrants strive to carve out their own niche.

If the current trends continue, Arizona will likely remain one of the most profitable states for sports betting, drawing in more players and generating substantial tax revenue for years to come. The state’s dynamic and fast-evolving sports betting landscape is a testament to the broader growth of the industry in the U.S., providing a model for other states looking to capitalize on this booming market.

As the market matures and regulations evolve, it will be interesting to see how Arizona adapts to the changing dynamics and whether it can maintain its position as a leader in the sports betting space.