Arizona Sports Betting Sees Double-Digit Growth in August

Arizona’s sports betting market continued its upward trajectory in August 2025, recording strong gains in both wagering volume and adjusted revenue, according to the latest figures released by the Arizona Department of Gaming (ADG). The state’s regulated market has been steadily expanding since its launch, and August’s numbers highlight both the increasing popularity of sports wagering and the dominance of online platforms in Arizona.

Players wagered a total of $610.7 million during the month, marking a 23% increase compared with August 2024 and a 31.7% rise from July 2025. Analysts suggest that this growth is being driven in part by anticipation for the NFL and college football seasons, coupled with aggressive marketing campaigns by major sportsbooks. The continued year-on-year growth also demonstrates that Arizona’s sports betting market remains resilient and attractive to both casual and professional bettors.

 

Online Betting Dominates

Online sportsbooks accounted for $608.9 million of the total handle, leaving retail sportsbooks responsible for just $1.8 million. This stark contrast underscores the state’s trend toward digital betting, which offers greater convenience and promotional incentives than traditional retail locations. Industry observers note that the low retail figures may also reflect ongoing challenges in expanding physical sportsbook presence outside of major urban centers.

From the total wagers placed, players won approximately $594.3 million, leaving operators with $59.9 million in gross event wagering revenue. This figure represents a 61.5% increase compared with the previous year and a 9.9% rise over July 2025, signaling steady month-on-month growth. After deducting $18.4 million in free bets and promotional credits, which are commonly used to attract and retain customers, adjusted gross event wagering revenue came in at $41.5 million. This marks an 85.3% increase from August 2024 and a 2% improvement over July, illustrating that promotional spending is substantial but not undermining overall revenue performance.

The adjusted hold rate for August stood at 6.8%, while the unadjusted hold was 9.81%. These figures suggest that operators are maintaining profitability even while offering competitive incentives, reflecting a mature and increasingly sophisticated market.

 

FanDuel Leads, DraftKings Follows

Among individual operators, FanDuel maintained its leading position in Arizona, posting $14.2 million in adjusted revenue from $178.5 million in wagers, equating to a 7.96% hold. The platform’s continued success is attributed to its strong brand recognition, strategic promotions, and an intuitive mobile experience, which appears to resonate strongly with Arizona’s betting audience.

DraftKings remained in second place, generating $13.0 million in combined online and retail revenue from $184.0 million in bets, resulting in a 7.07% hold. DraftKings’ strong performance reflects its nationwide presence and aggressive customer acquisition strategies, particularly in online betting.

BetMGM secured third place, posting $6.0 million in revenue on $67.5 million in bets, translating to an 8.89% hold. Meanwhile, Fanatics and Caesars rounded out the top five, contributing $2.6 million and $2.5 million in revenue, respectively. The varied hold percentages across operators indicate differences in risk management, promotional activity, and bet mix, highlighting the competitive nature of Arizona’s sports betting market.

The surge in betting activity also contributed significantly to state tax revenue. Arizona collected $4.1 million in tax revenue from sports betting during August, with almost all of it derived from online operations. Retail sportsbooks, in contrast, paid just $30,625 in taxes, reflecting their minimal share of the overall market. These revenues provide funding for public services and reinforce the economic benefits of a regulated sports betting framework.

 

Arizona’s sports betting market continues to show strong, sustainable growth, driven largely by online wagering and consistent consumer engagement across major operators.

 

Sustained Growth Ahead of NFL Season

August’s results continue a trend of sustained expansion for Arizona’s sports betting market, which has been growing steadily since its legalization in 2021. Analysts attribute the gains to several factors, including the rising popularity of online wagering, increased operator competition, and heightened interest in football as the NFL and college seasons approach.

With the state likely to see record-high handles during the fall months, Arizona’s sports betting industry appears well-positioned to maintain its status as one of the most active regulated markets in the United States. Operators’ ability to balance aggressive promotions with profitability will be a key factor in sustaining growth while maintaining consumer confidence.