Arizona’s sports wagering industry continued its upward momentum through the summer of 2025, with May and June both seeing sizable year-over-year growth, according to new figures released by the Arizona Department of Gaming (ADG).
In May 2025, bettors across the state wagered approximately $707 million, up 24.4% from the same month a year earlier. The state collected around $5.1 million in privilege fees during the period.
The following month, in June, Arizona recorded $542 million in wagers, a 19.6% increase from June 2024. Privilege fees brought in approximately $5 million for the state.
Steady Growth Since Legalization
Since the launch of legalized sports betting in September 2021, Arizona has rapidly developed into one of the nation’s top markets. Under House Bill 2772, the state authorized up to 20 sports betting licenses—split between tribal entities and professional sports organizations.
The market began with a strong debut, generating a then-record $291 million in handle during its first full month. That early momentum has continued through to 2025, largely fueled by mobile wagering, which dominates the state’s activity.
Arizona applies an 8% tax on retail wagers and a 10% tax on online bets, contributing funds to public services including education, emergency response, and tourism initiatives.
By the end of 2024, Arizona had collected over $69.6 million in taxes, while the total handle reached $6.21 billion.
Market Performance Snapshot
Data from the ADG reveals year-over-year improvements across key metrics:
- In 2021 (partial): $1.74 billion handle, $59.55 million in gross revenue
- In 2022: $6.04 billion handle, $289.15 million in revenue
- In 2023: $6.57 billion handle, $344.28 million in revenue
- In 2024: $6.21 billion handle, $365.42 million in revenue
- In Q1 2025: $2.45 billion handle, $117.9 million in revenue
Tax revenue has tracked similarly upward, with $34.82 million collected in 2023 and $34.43 million in 2024. The hold rate—the portion of wagers retained by sportsbooks—rose from 3.12% in 2021 to 5.70% in 2024, before adjusting slightly to 4.81% in Q1 2025.
Strong Industry Partnerships and Future Outlook
Arizona’s robust market is further supported by partnerships between major sports franchises and leading sportsbooks. The Arizona Cardinals, Phoenix Suns, and Arizona Diamondbacks have all signed deals with top operators like FanDuel, Caesars, and BetMGM, cementing the state’s reputation as a hub for regulated betting.
With consistent monthly growth and broad operator participation—including 12 active online sportsbooks and multiple retail locations – the outlook for Arizona’s sports betting market remains strong as it moves into the latter half of 2025.
Source:
“NEWS RELEASE: May & June Sports Betting Figures – Arizona Department of Gaming”, gaming.az.gov, August 2025
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