Arizona’s sports betting market presented a striking contrast in September: player wagering soared, yet operator revenue plunged to a three-year low. According to figures from the Arizona Department of Gaming, total handle reached $851.3 million—a 16.3% increase compared to September 2024. The total was also 39.4% higher than August 2025, when players bet $610.7 million.
The vast majority of bets were placed online, with $847 million wagered via digital platforms, leaving just $4.4 million at retail sportsbooks. Despite the surge in betting activity, adjusted gross receipts before deductions for free bets and promotions reached only $55 million. This amount fell 28.9% below last year’s September total and 8.2% behind August 2025’s figure.
After accounting for $35.4 million in free bets and promotional credits, the final adjusted revenue plummeted to $19.6 million—the lowest monthly total since July 2022. Compared with September 2024, this represents a 48% drop and is 53.1% below August 2025. Arizona’s hold, based on revenue before promotional deductions, was 6.46%; after factoring in promotional credits, the effective hold dropped to just 2.3%, underscoring how operator incentives can heavily impact net revenue.
Market Leaders and Operator Performance
FanDuel maintained its position as the leading operator in Arizona, posting $8.5 million in adjusted revenue from $254.5 million in wagers, resulting in a 3.34% monthly hold. DraftKings ranked second with $4.3 million in revenue, though its $270.2 million handle produced a lower 1.59% hold. BetMGM came in third with $4.2 million earned from $98.3 million in wagers, yielding a 4.07% hold. Caesars followed with $1.7 million from $45.5 million in bets, for a 3.74% hold.
No other operators reached six-figure revenue. Fanatics, which had ranked fourth in August, did not report any revenue for September, and Bet365 also recorded zero earnings. The data highlights a market dominated by a few top operators, while others struggled to generate meaningful revenue despite high player engagement.
Taxes and the Impact of Promotions
Sports betting contributed $1.9 million in taxes to the state during September, almost entirely derived from online wagers, with retail sportsbooks accounting for only $79,416. Privilege fees for the month totaled $1.94 million. It’s important to note that these figures are self-reported by operators and remain subject to audit and adjustment by the Arizona Department of Gaming.
The wide gap between the record handle and relatively low revenue underscores the influence of operator payouts and promotional spending. With mobile betting accounting for the bulk of activity, the data highlights the increasing dominance of online platforms in Arizona’s sports betting ecosystem. Even as players bet more, aggressive promotional campaigns and high payout ratios have compressed net revenue to levels not seen in over three years.
Source:
“Event Wagering Revenue Report September 1-30, 2025”, gaming.az.gov. November 2025
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