Sports Betting In Arizona

Since its official launch in September 2021, sports betting in Arizona has rapidly evolved into one of the most dynamic and competitive markets in the United States. With a unique blend of tribal partnerships, mobile app dominance, and enthusiastic local support for major sports teams, the state has carved out a notable spot in the national betting landscape.

Fueled by high-profile sportsbook operators like FanDuel, DraftKings, and BetMGM, and underpinned by a legal structure designed for accessibility, Arizona has seen consistent growth in both betting handle and tax revenues. According to Betting AZ, the Grand Canyon State continues to offer one of the most bettor-friendly experiences in the country, both online and at retail locations.

Legal Landscape: How Arizona Became a Sports Betting Hub

The legalization of sports betting in Arizona stems from House Bill 2772, signed into law by then-Governor Doug Ducey in April 2021. This legislation represented a landmark shift in gaming policy and was part of a larger compact renegotiation with the state’s tribal nations.

The bill authorized up to 20 licenses—10 for professional sports teams and venues, and 10 for tribal entities—making Arizona one of the few states to directly integrate both tribal and commercial frameworks into its sports betting rollout. Notably, the law also allowed for online sportsbooks, which significantly accelerated adoption by offering convenience and accessibility to bettors statewide.

This hybrid structure has helped Arizona attract a diverse group of sportsbook operators while maintaining strong relationships with Native American tribes. Today, platforms like Bet365, Fanatics Sportsbook, and ESPN BET operate alongside tribal-backed services such as Desert Diamond, helping to create a robust, multi-operator market.

2024 in Review: Major Shifts and Market Movements

The year 2024 was anything but steady for Arizona’s sports betting industry. On one hand, the state saw record-breaking monthly handles—such as the $791 million wagered in October alone. On the other, the market experienced high turnover, with several sportsbooks exiting the state.

In total, four operators—including Unibet, SaharaBets, SuperBook Sports, and Betway-closed their Arizona operations during the year, citing issues like intense competition and strategic realignment. However, their departures were offset by new entrants like Sporttrade and bet365, the latter launching in partnership with the Ak-Chin Indian Community and committing a $1 million donation to tribal development.

Despite the shakeups, Arizona still had 13 legal sportsbooks active by the end of 2024. FanDuel and DraftKings remained dominant players, accounting for nearly $500 million in combined wagers in October alone. With total bets exceeding $5.4 billion through September and a strong 9.5% hold rate, the state maintained its momentum in terms of revenue and user engagement.

Big Players and Market Exits: Who’s In and Who’s Out

Arizona’s sports betting ecosystem has been anything but stagnant. In 2024 alone, the market experienced notable volatility, with a shuffle of operators both entering and exiting the state. While this may appear unstable on the surface, it actually reflects a maturing market that is fine-tuning itself based on competition and consumer demand.

Among the newcomers, bet365 made a high-profile debut in February 2024, aligning with the Ak-Chin Indian Community and pledging $1 million in support of tribal initiatives. Similarly, Sporttrade, a Philadelphia-based sports betting exchange, launched in September through a partnership with the Quechan Tribe of the Ft. Yuma Indian Reservation.

On the other hand, several operators bowed out. Unibet exited in June, part of parent company Kindred Group’s broader withdrawal from the U.S. market. SaharaBets, SuperBook Sports, and Betway followed suit, each citing various challenges such as limited market share, operational inefficiencies, and fierce competition from entrenched giants like FanDuel and DraftKings.

Despite these exits, Arizona still hosts a competitive array of 13 licensed sportsbooks, providing robust choices for bettors while allowing the market to self-correct and focus on sustainable operators.

Partnerships with Tribal Nations: A Core Pillar of Arizona’s Betting Model

One of the unique strengths of Arizona’s sports betting landscape is its deeply rooted collaboration with tribal nations. The legalization framework established in 2021 allowed for tribal operators to run both retail and online sportsbooks under new compact agreements, offering tribes a critical revenue stream in the evolving gaming economy.

Tribes such as the Ak-Chin Indian Community, Tonto Apache Tribe, and the Quechan Tribe have entered strategic partnerships with commercial sportsbooks like bet365, Fanatics, and Sporttrade. These collaborations are not merely symbolic—they represent significant business ventures that fund tribal programs, economic development, and community services.

This tribal-commercial synergy is part of what makes Arizona’s approach so distinctive. Unlike other states where tribal gaming remains siloed or limited, Arizona has effectively woven tribal participation into its mainstream sports betting strategy. This inclusive model not only benefits the tribes but also ensures a more diversified and resilient betting market.

Economic Impact: Billions in Handle and Growing Revenues

Arizona’s sports betting industry has grown into a financial powerhouse. Through September 2024, the state recorded over $5.4 billion in total wagers, reflecting a nearly 20% year-over-year increase. According to bettingaz.com, this growth shows no signs of slowing, with 2025 expected to bring continued expansion and deeper market penetration.

October 2024 set a single-month record with $791 million in handle, showcasing the immense appetite for sports wagering—particularly through mobile platforms, which accounted for the vast majority of bets. During that same month, sportsbooks retained $53.8 million in gross gaming revenue, with the state collecting $2.4 million in taxes and fees.

Industry leaders DraftKings and FanDuel remain dominant, accounting for over $500 million in wagers between them in October alone. Their success is driven by a combination of brand recognition, mobile app performance, and marketing reach—factors that have allowed them to capture significant market share while fending off newer competitors.

Overall, sports betting is becoming a vital contributor to Arizona’s broader economy—not only in terms of direct tax revenue but also through job creation, tourism tie-ins, and tribal development funds.

Taxation and State Revenue: Where the Money Goes

While the revenue from sports betting doesn’t fill the state’s coffers at the same scale as other industries, it’s still a growing and reliable stream of income for Arizona. The state applies an 8% tax rate on retail sportsbooks and a 10% tax rate on online betting revenue—rates that are competitive when compared to other U.S. markets.

According to figures from the Arizona Department of Gaming (ADG), the state brought in $2.4 million in taxes and fees from sportsbook activity in October 2024 alone. Over the course of the year, this added up to tens of millions in public revenue, helping fund a variety of initiatives ranging from education to infrastructure.

Unlike states with more aggressive taxation models that risk driving out operators, Arizona’s more measured approach has encouraged market participation while still delivering consistent public benefit. Tribal partnerships also play a key role here, as tribal-run sportsbooks contribute indirectly to state welfare by reinvesting their profits into health care, housing, and education on tribal lands.

As the market stabilizes and more bettors engage year over year, these numbers are expected to grow-especially with the expected 20% market expansion projected for 2025.

Player Preferences and Platform Trends

Arizona bettors have shown a clear preference for mobile sports betting, which makes up the lion’s share of wagers placed statewide. With 14 licensed online operators active at various points in 2024, competition remains fierce, pushing brands to constantly enhance their app experience, bonuses, and odds offerings.

DraftKings and FanDuel continue to dominate due to their sleek interfaces, large promotional budgets, and fantasy sports integration. In October alone, DraftKings processed over $261 million in wagers, while FanDuel came in close with $252 million.

But there’s a growing appetite for innovation, too. Sporttrade, which launched in late 2024, offers a unique betting exchange model where users buy and sell positions like stocks, appealing to more finance-savvy users. Meanwhile, Fanatics Sportsbook—new to the market—leverages its sports apparel brand to offer exclusive merch-based promos tied to betting activity.

What’s clear is that user experience, personalization, and market variety are key drivers for Arizona's bettors. Platforms that continue to invest in these areas are best positioned to thrive in the evolving digital landscape.

Responsible Gaming: Initiatives from the Arizona Department of Gaming

With the rise of online gambling access, the importance of responsible gaming has never been greater. The Arizona Department of Gaming (ADG) has taken proactive steps to ensure the industry grows sustainably and safely for all participants.

March 2025 was recognized as Problem Gambling Awareness Month, during which ADG partnered with the Arizona Lottery and the National Council on Problem Gambling to roll out educational campaigns and promote resources for those affected by gambling addiction. The “Check Before You Bet” initiative, launched ahead of March Madness, encouraged players to set limits, recognize warning signs, and seek help if needed.

Additionally, Arizona maintains a self-exclusion program and offers a dedicated hotline for those seeking assistance. Licensed operators are required to implement responsible gambling tools such as bet limits, timeouts, and reality checks.

As the industry grows, so does the state’s commitment to ensuring gambling remains a form of entertainment—not a source of harm. The inclusion of these programs in both tribal and commercial operations highlights Arizona’s comprehensive approach to regulation.