Arizona’s regulated sports and event wagering market recorded a sharp increase in betting activity in June, with bettors wagering approximately $663.9 million during the month, according to figures released by the Arizona Department of Gaming. The total was about 22.3% higher than June 2025 and represented an increase of more than $120 million.
The monthly figures came as Arizona entered fiscal year 2027 with approximately $3.2 million in privilege fees generated from regulated event wagering and fantasy sports. Event wagering accounted for about $3.1 million, while fantasy sports contributed $86,860.
Since legal sports betting began in Arizona in 2021, consumers have wagered approximately $36 billion. That activity has generated about $193.7 million in event wagering privilege fees for the state.
Bigger Handle, Lower State Revenue
The increase in wagering did not produce a corresponding rise in state revenue for June. Arizona collected just over $3 million during the month, around $2 million below the amount recorded during June 2025.
Suzanne Trainor of the Arizona Department of Gaming explained that the state’s tax system focuses on adjusted gross event wagering revenue rather than the total amount wagered.
“The reason that is is that Arizona and other states as well, they don’t tax based off the handle,” Trainor said. “It’s more they’re taxing the adjusted gross event wagering revenue. So that factors in payouts.”
Higher player winnings and sportsbook promotions contributed to the lower revenue figure, according to Trainor. June also featured major sporting events, including the World Cup final, where Spain defeated Argentina, and the NBA Finals, where the Knicks defeated the Spurs. More than 66 million people in the United States watched the World Cup final.
The June results illustrate how betting volume and taxable revenue can move in different directions. A larger amount wagered does not automatically produce more state income when payouts and promotional activity reduce the revenue subject to taxation.
Arizona’s Tax Structure Under Review
Arizona applies a 10% tax to sportsbook profits. That rate compares with 20% in Massachusetts and 51% in New York, Rhode Island and New Hampshire.
Trainor said the department remains focused on managing state funds effectively and maintaining relationships with operators.
“It’s a great source of entertainment and it’s a great source of state revenue,” she said.
Adam Hoffer of the Tax Foundation described sports betting revenue as volatile while noting that states have generally welcomed the additional income. He expects the industry and its regulatory framework to change as the market develops.
“Some states have capped the amount of promotional wagers that these companies are allowed to offer, and just last year Illinois was the first state to implement a per wager tax,” Hoffer said.
Arizona law directs 90% of sports betting tax revenue to the state’s general fund, with the remaining 10% allocated to the Department of Gaming.
The department cautioned that its monthly figures come directly from licensed operators and may change following audits and reviews.
Source:
“Arizona Department of Gaming Releases June 2026 Event Wagering and Fantasy Sports Figures”, gaming.az.gov, August 18, 2026
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