Since the legalization of sports betting in Arizona in 2021, the Grand Canyon State has emerged as one of the most dynamic markets in the U.S. With billions in wagers placed annually and a steadily growing pool of operators, Arizona’s sports betting industry has evolved into a major economic player. In 2024 alone, the state saw a record-breaking $5.4 billion in total bets through September — a sign of just how rapidly the market is expanding.
According to Betting AZ, Arizona is not just growing in volume but maturing in complexity, with savvy consumers, tribal partnerships, and national sportsbook brands all shaping a unique landscape. Despite some turbulence — including the departure of several operators — the outlook remains overwhelmingly positive as the state positions itself for long-term success.
The Evolution of Arizona's Sports Betting Law
Arizona’s sports betting journey officially began in April 2021, when then-Governor Doug Ducey signed HB 2772 into law. The bill allowed both tribal casinos and professional sports franchises to partner with sportsbook operators — creating a hybrid model that’s relatively unique compared to other states.
On September 9, 2021, the first legal bets were placed, coinciding with the start of the NFL season. Since then, the state has licensed over a dozen sportsbook platforms, both online and retail, offering residents a wide variety of options.
Key Regulatory Bodies and Tribal Partnerships
Oversight of Arizona’s sports betting operations falls under the Arizona Department of Gaming (ADG). The ADG plays a crucial role in licensing, compliance, tax collection, and promoting responsible gambling.
Equally important are the partnerships with Native American tribes. For example, bet365’s 2024 entry into Arizona was made possible through a licensing deal with the Ak-Chin Indian Community, including a $1 million tribal donation. Other tribes, such as the Tonto Apache and the Quechan Tribe of the Ft. Yuma Indian Reservation, have also entered into agreements with sportsbook operators like Fanatics and Sporttrade, reflecting how tribal sovereignty and commercial opportunity intersect in Arizona’s gaming framework.
New Entrants in the Arizona Market
Despite industry consolidation elsewhere, Arizona welcomed several new players in 2024. Notable among them was Sporttrade, a unique sports betting exchange that launched in September in partnership with the Quechan Tribe. Earlier in the year, Fanatics Sportsbook rolled out its platform following a deal with the Tonto Apache Tribe. bet365, one of Europe’s betting giants, also made its debut in February — signaling growing international interest in Arizona’s market.
Major Sportsbooks That Shut Down
However, 2024 wasn’t just about expansion. Four sportsbooks — Unibet, SaharaBets, SuperBook Sports, and Betway — exited the Arizona market. These departures stemmed from several challenges: difficulty in gaining market share, national strategy pivots, and in some cases, business closures. For instance, SaharaBets shut down as its parent company, owned by former NHL team owner Alex Meruelo, dissolved the Arizona Coyotes and sold their rights to a new Utah-based franchise.
Despite the exits, Arizona remains a robust market with 13 active sportsbooks and no signs of regulatory backtracking.
Market Shifts and Consumer Trends
Arizona continues to be one of the most accessible states for bettors. Restrictions are minimal — excluding only college player props, political outcomes, and entertainment awards. The simplicity of regulations, coupled with tech-savvy fans and a sports-hungry population, has kept the market active.
Moreover, mobile betting dominates, with platforms like DraftKings, FanDuel, and ESPN BET continuing to draw the lion’s share of wagers.
Market Shifts and Consumer Trends
Arizona continues to be one of the most accessible states for bettors. Restrictions are minimal — excluding only college player props, political outcomes, and entertainment awards. The simplicity of regulations, coupled with tech-savvy fans and a sports-hungry population, has kept the market active.
Moreover, mobile betting dominates, with platforms like DraftKings, FanDuel, and ESPN BET continuing to draw the lion’s share of wagers.
Record-Breaking Numbers and Growth Projections
Arizona’s sports betting industry has not only maintained momentum but has also achieved record-breaking milestones. In October 2024, the state reported a staggering $791 million in total wagers, one of the highest monthly handles since legalization. That same month, AZ sportsbooks kept $53.8 million in adjusted gross revenue, resulting in $2.4 million paid back to the state in taxes and fees, according to data from the Arizona Department of Gaming.
Through the first three quarters of 2024, Arizona reached over $5.4 billion in total wagers — with projections pointing to over 20% growth year-over-year. According to Betting AZ, this growth is fueled by increased online participation, aggressive promotions, and the return of major sporting events post-COVID disruption.
Tax Revenue and Economic Contributions
Arizona applies a 10% tax rate to online sportsbook revenue and 8% to retail operators. These contributions have become a dependable source of public funding. In Q3 of FY2025 alone, tribal gaming contributed over $30.8 million to the state, reinforcing the dual benefit of legalized wagering: consumer entertainment and meaningful fiscal returns.
DraftKings and FanDuel Take the Lead
The two major players in Arizona continue to be DraftKings and FanDuel. In October 2024, DraftKings recorded over $261 million in bets, combining its mobile platform and retail sportsbook in Scottsdale. Meanwhile, FanDuel followed closely with $252 million in total wagers for the same month.
These platforms have cornered the market thanks to superior mobile user experience, aggressive marketing campaigns, and their deep integrations with daily fantasy sports — already popular among Arizona’s sports enthusiasts.
DraftKings and FanDuel Take the Lead
The two major players in Arizona continue to be DraftKings and FanDuel. In October 2024, DraftKings recorded over $261 million in bets, combining its mobile platform and retail sportsbook in Scottsdale. Meanwhile, FanDuel followed closely with $252 million in total wagers for the same month.
These platforms have cornered the market thanks to superior mobile user experience, aggressive marketing campaigns, and their deep integrations with daily fantasy sports — already popular among Arizona’s sports enthusiasts.
Emerging and Noteworthy Competitors
While giants dominate the charts, other sportsbooks are carving out loyal followings. BetMGM, Caesars Sportsbook, and ESPN BET continue to attract niche audiences and offer specialized promotions tied to local sports teams. Newcomers like Fanatics Sportsbook are betting on innovation and brand crossovers to stay competitive.
Despite fierce competition, Arizona’s low barriers to entry and broad betting menu allow even smaller platforms like Sporttrade and Golden Nugget to find a place in the ecosystem.
A State That Bleeds Sports
Arizona’s sports culture is a driving force behind its betting boom. From NFL Sundays with the Arizona Cardinals to college basketball showdowns with the Arizona Wildcats, there’s no shortage of high-stakes action for fans to wager on. The state also hosts major events like the Super Bowl, NASCAR races, and spring training for MLB teams, giving bettors year-round engagement opportunities.
According to Betting AZ, Arizona bettors are especially active during local sports events, with spikes in wagering during Phoenix Suns NBA games and college football weekends.
Mobile Wagering and Fan Engagement
Arizona’s high smartphone adoption and tech-savvy population have made mobile sports betting the default choice. With 14 online sportsbooks live as of late 2024, users can compare odds, place bets, and collect winnings from their phones without ever visiting a retail location.
Operators are also leaning into this digital trend with mobile-exclusive promotions, live in-game betting, and even tie-ins with fantasy sports platforms to keep users active and engaged.
Why Some Operators Are Exiting the Market
Despite Arizona’s overall success, not all sportsbooks have thrived. In 2024, four operators—Unibet, SaharaBets, SuperBook Sports, and Betway—shut down operations in the state. These closures were largely attributed to fierce competition from dominant players like DraftKings and FanDuel, unsustainable acquisition costs, and limited brand recognition in the U.S. market.
For example, Betway’s parent company, Super Group, cited difficulties in breaking through the American market, choosing to refocus on core regions with stronger brand presence. SaharaBets, closely tied to the now-defunct Arizona Coyotes NHL team, also exited following the franchise’s relocation to Utah.
Tough Playing Field for Smaller Brands
Arizona’s market is highly attractive—but it’s also saturated. With 13 licensed sportsbooks and minimal regulatory hurdles, it’s a space where only the most innovative or well-funded operators are likely to survive. New entrants must offer a differentiated product, unique betting features, or deep community ties to remain competitive.
A Period of Stabilization
Looking ahead, 2025 may mark a shift from expansion to stabilization. Most major sportsbooks have already entered the Arizona market, and legislative action on sports betting appears to be in a holding pattern. According to industry analysts, the market is now transitioning from growth mode to performance optimization.
The Arizona Department of Gaming is expected to maintain current policies with a focus on compliance, tax enforcement, and responsible gaming. There is no active push for major changes in tax rates, betting restrictions, or new licensing structures.
Opportunities for Innovation
Still, opportunities remain. Platforms that integrate in-play betting, streaming, and AI-driven odds are gaining attention. Additionally, Arizona’s affinity for sports opens the door for more localized promotions, team partnerships, and fan engagement campaigns.
There is also increasing interest in sports betting exchanges, like Sporttrade, which offer a stock market-like experience for bettors—appealing to younger, financially literate users.
State Initiatives to Promote Safe Betting
With rapid growth comes the responsibility to protect consumers. The Arizona Department of Gaming, in partnership with the National Council on Problem Gambling, has designated March as Problem Gambling Awareness Month and actively promotes the “Check Before You Bet” campaign to encourage responsible play.
The state also provides self-exclusion programs, support lines, and public education resources to ensure that sports betting remains a safe form of entertainment.
Industry-Wide Commitment
Operators like FanDuel, Caesars, and DraftKings have all implemented responsible gaming features, such as deposit limits, cooling-off periods, and self-assessment tools. These efforts align with Arizona’s regulatory expectations and public health goals.
As the market matures, maintaining a balance between innovation and responsibility will be critical to ensuring its long-term success.
