Arizona Sports Betting Overview: A Record-Breaking March
In March, sports betting in Arizona took a substantial leap, hitting a remarkable total of $887.4 million, just narrowly missing the state’s previous record set in November 2024. This figure marks a significant increase of 16.8% compared to the same month last year and an impressive 26.8% rise from February.
Online betting alone accounted for $881.8 million, complemented by $5.6 million from retail sportsbooks, according to the Arizona Department of Gaming.
Despite this surge in betting activity, revenue didn’t mirror the overall increase. The adjusted gross event wagering receipts totalled about $48.3 million, representing a decline of 18.6% from the previous year and down 26.4% from February. Notably, online platforms generated $47.7 million of that total, while retail sportsbooks contributed a modest $581,554.
March also saw free bet deductions amount to $23.2 million, leaving the adjusted gross receipts at $25 million—a significant drop of 34.2% year-on-year, down 37.2% compared to February.
Understanding the Hold Rates
In terms of hold, which measures the percentage of money retained by sportsbooks, the adjusted figure before deductions reached 5.38%. After accounting for all deductions, the hold dropped to 2.62%.
FanDuel Maintains Its Dominance
FanDuel remained the leader in the Arizona market amid growing competition, generating $18.3 million in revenue from a hefty $254.2 million handle, resulting in a solid hold of 7.20%. DraftKings followed closely, bringing in $15.3 million from a larger handle of $314.2 million, which translated to a hold of 4.87%. BetMGM ranked third, with $4.8 million from a $109.9 million handle and a 4.37% hold.
Other notable operators included Caesars, which reported $2.4 million in revenues from $49.2 million with a 4.88% hold, and Fanatics, rounding out the top five with $2.2 million off $59.3 million, yielding a hold of 3.71%. Bet365 and ESPN Bet also made their marks, each exceeding $1 million in receipts, showcasing the competitive landscape.
Tax Contributions from Sports Betting
March’s sports betting also made a noteworthy contribution to state revenues, generating approximately $2.5 million in taxes—$2.4 million from online bets and around $45,744 from retail betting, underscoring the fiscal impact of this booming industry in Arizona.