Arizona’s Sports Betting Market Hits New Highs: Record Growth in November 2024

Arizona Booming Sports Betting Industry Continues Its Upward Trend

Arizona sports betting industry is on an unstoppable trajectory, with November 2024 setting yet another record in total wagers placed. The state’s sports betting handle surged to $897.6 million, reflecting an 18.1% increase from October’s record of $759.8 million and an impressive 25.8% jump year-over-year compared to November 2023.

Since the legalization of sports betting in 2021, Arizona has consistently ranked among the top markets in the U.S., with growing consumer interest and fierce competition among operators fueling this rapid expansion.

Online Betting Dominates Arizona’s Market

The overwhelming majority of sports bets in Arizona were placed online, with $890 million of the total handle coming from mobile and online sportsbooks. In contrast, retail betting accounted for just $7.6 million, reinforcing the dominance of digital platforms—a trend mirrored across other regulated states.

The continued success of online betting is largely attributed to its convenience, allowing users to place wagers from anywhere within state lines. Arizona’s operators have capitalized on this shift, investing heavily in mobile platforms, user-friendly interfaces, and promotional incentives.

Record-High Revenues and Player Winnings

While bettors placed nearly $900 million in wagers, they also walked away with substantial winnings. In total, players won $811.3 million, leaving operators with a record-breaking $84.1 million in adjusted gross event wagering receipts (AGWR)—an 8.7% increase from September 2024’s record and nearly double the AGWR from November 2023.

This surge in revenue cements Arizona’s position as one of the most lucrative sports betting markets in the U.S., with operators reaping substantial profits while the state benefits from increased tax revenue.

FanDuel and DraftKings Lead the Pack

As competition in Arizona heats up, two sportsbook giants—FanDuel and DraftKings—continue to dominate.

• FanDuel led the market with a $288.6 million handle, generating $29.9 million in AGWR and holding 10.36% of its bettors’ wagers.
• DraftKings narrowly edged out FanDuel in total handle, taking in $293.4 million, but recorded a lower revenue of $25.7 million with an 8.76% hold.

Trailing behind, BetMGM secured the third-highest revenue with $12.7 million AGWR from a $111.6 million handle, boasting an 11.38% hold rate—a testament to its strong performance despite a smaller betting volume.

Several other major sportsbooks, including Caesars, Bet365, ESPN Bet, and Fanatics, also made their presence felt:

• Caesars: $4.0 million revenue
• Fanatics: $3.8 million revenue (online only)
• Bet365: $3.2 million revenue
• ESPN Bet: $2.3 million revenue
• Hard Rock Digital: $1.4 million revenue from a $20.4 million handle

Despite their smaller market shares, these brands continue to push forward, striving to carve out a niche in Arizona’s competitive sports betting landscape.

The Impact of Free Bets and Growing Tax Revenue for Arizona

Promotional incentives such as free bets played a key role in driving November’s record-breaking performance. Sportsbooks issued $26.6 million in free bets, directly influencing the adjusted gross event wagering receipts. When accounting for these promotions, Arizona’s AGWR stood at $57.5 million—an astonishing 183.3% increase from November 2023.

Meanwhile, Arizona collected $5.7 million in sports betting tax revenue, nearly all of which came from online betting, which is taxed at 10%. Retail sports betting, taxed at 8%, contributed just $57,358 to the total.

The steady increase in tax revenue underscores the financial benefits of Arizona’s regulatory framework, with policymakers capitalizing on the state’s thriving sports betting market.

Why Arizona’s Sports Betting Industry Is Flourishing

Several factors contribute to Arizona’s sports betting boom, setting it apart from other states:

1. A Business-Friendly Regulatory Framework – Arizona’s efficient licensing process and competitive tax rates make it an attractive market for sportsbooks, encouraging operators to establish a strong presence.
2. A Passionate Sports Fan Base – With teams like the Arizona Cardinals (NFL), Phoenix Suns (NBA), and Arizona Diamondbacks (MLB), the state boasts a highly engaged sports community eager to bet on their favorite teams.
3. The Mobile Betting Surge – The state’s tech-savvy population prefers mobile betting, with operators catering to this demand by offering seamless, app-based experiences.

Arizona’s continued success serves as a model for other states looking to maximize sports betting revenue while maintaining a balanced and competitive industry.

What’s Next for Arizona’s Sports Betting Market?

With record-breaking figures two months in a row, all signs indicate that Arizona’s sports betting market will maintain its momentum throughout 2025 and beyond. However, as competition intensifies, smaller operators will need to innovate and offer competitive promotions to challenge the dominance of FanDuel and DraftKings.

If current trends persist, Arizona is poised to remain one of the most profitable sports betting states, with sustained growth in player engagement, operator revenue, and state tax collections.

The coming years will be crucial in determining how Arizona adapts to market saturation, potential regulatory shifts, and evolving consumer preferences, but for now, the Grand Canyon State stands as a powerhouse in the U.S. sports betting industry.