Arizona Sports Betting Revenue Is Still on the Rise

Arizona’s sports betting market posted a stronger July compared to the same month last year, but total wagers dropped to the lowest monthly level in 12 months, highlighting a divergence between revenue and player spending. According to figures released by the Arizona Department of Gaming, gross event wagering receipts across both online and retail channels reached $463.7 million, representing a 13.1% increase year-on-year. However, this figure was 14.6% lower than June 2025, indicating a seasonal slowdown in betting activity that has historically been observed during mid-summer months. Analysts note that while overall wagering decreased, the rise in revenue suggests sportsbooks may have benefited from higher hold rates and lower promotional outlays.

Online wagering dominated July’s activity, accounting for nearly all of the total handle. Bettors staked $462.5 million online, reflecting the ongoing trend toward digital platforms as the preferred channel for sports betting. In contrast, retail sportsbooks generated just over $1.2 million, highlighting the continued marginal role of in-person betting in Arizona. Market observers suggest that the gap between online and retail activity underscores the importance of mobile and web-based platforms in capturing the majority of the state’s sports betting volume.

 

• Revenue Growth vs. Handle Decline – Arizona’s sports betting revenue reached $40.7 million in July, up 40.3% year-on-year, even as total wagers dropped to $463.7 million, the lowest monthly handle in 12 months.

• Online Dominance – Nearly all betting activity occurred online, with $462.5 million staked digitally, compared to just $1.2 million in retail sportsbooks, emphasizing the continuing shift toward mobile and web platforms.

• Operator Performance and Tax Impact – FanDuel led the market with $13.9 million in revenue, followed by DraftKings, BetMGM, Fanatics, and Bet365. Operators collectively paid $4.1 million in taxes, almost entirely from online wagers.

 

Revenue Trends

Players won back $409.2 million during the month, leaving sportsbooks with $53.4 million in gross receipts before promotional adjustments. After accounting for $12.7 million in free and promotional bets offered to attract and retain players, adjusted gross receipts stood at $40.7 million. This adjusted figure represented a 40.3% increase over July 2024, reflecting strong year-on-year growth despite the decline in overall handle. However, adjusted revenue was 19.4% lower than June 2025, illustrating that monthly variations remain influenced by seasonal betting patterns and the timing of major sports events. Online betting contributed almost all of the adjusted receipts at $40.6 million, while retail sportsbooks added only $104,581, further emphasizing the dominance of digital channels in Arizona’s sports betting ecosystem. The state’s monthly hold—the proportion of wagers retained by operators—came in at 8.8%, a rate consistent with national averages.

Examining operator-specific performance, FanDuel retained its market leadership, generating $13.9 million in revenue from $155.4 million in bets, achieving a hold rate of 8.94%. FanDuel’s leading position reflects its strong brand presence and aggressive marketing strategy, which continues to attract high levels of player engagement. DraftKings followed closely, posting $13.1 million in revenue from a $126.1 million handle, yielding a higher hold rate of 10.39%, suggesting efficient risk management despite slightly lower wagering volume. Other major operators reported varied results. BetMGM generated $5.2 million from a $57.8 million handle (9% hold), while Fanatics posted $3.2 million in revenue with a $36.2 million handle (8.86% hold). Bet365 rounded out the top five, producing $2.1 million from a $32.2 million handle, with a hold of 6.52%, reflecting more modest activity in the state. Analysts note that differences in hold rates among operators can significantly influence monthly revenue rankings, even when total betting volumes are similar.

Arizona sportsbooks contributed a total of $4.1 million in taxes for July. Nearly all tax revenue was collected from online betting, which carries a 10% tax rate, while retail wagering accounted for just over $8,000, subject to an 8% tax. The disproportionate contribution underscores the dominance of mobile and web-based platforms in the state’s regulated market. These tax revenues continue to provide an important source of funding for state programs and illustrate the fiscal impact of a rapidly growing sports betting sector.

 

Despite a year-on-year increase in revenue, July’s decline in total wagers highlights the ongoing impact of seasonal trends and shifting player behavior on Arizona’s sports betting market.

 

Context

While July’s total handle dropped to the lowest level since mid-2024, the market’s revenue growth outpaced the decline in wagers due to higher effective hold rates and reduced promotional spending. This pattern suggests that sportsbooks are increasingly able to generate stable returns even in months with lower betting volume. The year-on-year gains highlight the overall resilience of Arizona’s sports betting market, though seasonal fluctuations and event timing remain key factors influencing monthly performance. Analysts caution that while July’s figures are encouraging from a revenue perspective, sustained growth will depend on maintaining player engagement and the expansion of market offerings.