Arizona Sports Betting Hits Records in March-April

Arizona sports bettors wagered nearly $887.4 million in March, coming within 1.1% of the state’s all-time monthly record, according to data released by the Arizona Department of Gaming. While betting activity surged, adjusted revenue and tax collections fell sharply, reflecting a growing trend of promotional spending and operator competition.

Online platforms dominated the market, accounting for $881.8 million of the total handle, with retail sportsbooks contributing just $5.6 million. March’s handle was 16.8% higher than the same month last year and 26.8% above February 2025, underscoring the continued growth of legal sports betting in the Grand Canyon State.

The total fell just short of Arizona’s record $897.6 million set in November 2024. Despite the increase in wagering, adjusted gross event wagering receipts dropped to $48.3 million—down 18.6% year-over-year and 26.4% below February’s total. Of this, $47.7 million came from online operators, with retail sportsbooks accounting for only $581,554.

After deducting $23.2 million in promotional credits and free bets, the state’s adjusted revenue stood at $25 million. That marks a 34.2% decrease compared to March 2024 and a 37.2% decline from the previous month. Arizona’s effective hold—calculated from adjusted receipts before deductions—was 5.38% for the month. After deductions, the hold dropped to 2.62%.

Among operators, FanDuel maintained its lead in Arizona’s competitive market. It reported $18.3 million in pre-deduction receipts from a $254.2 million handle, translating to a 7.20% hold. DraftKings trailed with $15.3 million in revenue from a higher $314.2 million handle, reflecting a 4.87% hold. BetMGM ranked third, with $4.8 million from $109.9 million in wagers (4.37% hold).

 

Other notable operators included:

• Caesars: $2.4 million from $49.2 million (4.88% hold)
• Fanatics: $2.2 million from $59.3 million (3.71% hold)
• Bet365: $2.1 million from $50.2 million (4.78% hold)
• ESPN Bet: $1.9 million from $23 million (8.26% hold)

ESPN Bet posted the highest hold rate of all operators, despite a smaller share of the overall handle.=

Total tax revenue from sports betting in March amounted to $2.5 million. Online wagering contributed the bulk with $2.4 million, while retail sportsbooks generated just $45,744. The tax decline mirrors the drop in adjusted gross receipts, suggesting that aggressive promotional spending may be eating into taxable revenue, even as player activity grows.

 

Arizona came within striking distance of its all-time sports betting record, but rising promotional costs continue to weigh on actual revenue

Outlook

March’s near-record handle demonstrates the strength of Arizona’s sports betting market, particularly during peak betting events like NCAA March Madness. However, the sharp revenue and tax declines raise questions about long-term sustainability and the balance between market growth and profitability.

As the market matures, operators may need to recalibrate promotional strategies to stabilize margins. Regulators and policymakers will likely continue monitoring trends closely, especially as competition and customer acquisition efforts continue to shape the financial landscape.