Arizona’s sports betting market experienced a surge in betting activity in March 2025, with bettors wagering an impressive $887.4 million, marking a 16.8% year-over-year increase compared to March 2024. Despite this rise in betting handle, the state saw a decline in revenue, with sports betting taxes and overall earnings dipping significantly.

A strong month for sports betting handle:

According to the Arizona Department of Gaming’s news release (pdf), the total sports betting handle for March 2025 came close to breaking the state’s all-time monthly record. With $887.4 million wagered, the total was just 1.1% shy of the previous record of $897.6 million, which was set in November 2024. When compared to February 2025, the increase was substantial, with a 26.8% rise in sports betting activity.

Of the total wagers, $881.8 million was placed online, while retail sportsbooks saw a smaller share, taking in $5.6 million. While these figures reflect the growing popularity of sports betting in the state, the overall revenue from these bets showed a less favorable trend.

Despite the significant increase in the amount wagered, Arizona’s sports betting revenue dropped considerably. Adjusted gross event wagering receipts stood at $48.3 million, which represents an 18.6% decline from the previous year and a 26.4% decrease from February 2025. The drop in revenue was particularly noticeable after factoring in free bet deductions, which amounted to $23.2 million for March. This led to a much lower adjusted gross revenue of $25 million, marking a 34.2% year-over-year decline and a 37.2% drop compared to the previous month.

In terms of hold, which measures the operator’s share of total wagers before deductions, Arizona’s hold was reported at 5.38%. After deductions, the state’s hold dropped to 2.62%, reflecting the impact of free bet incentives and other factors on overall revenue.

FanDuel leads Arizona’s sports betting operators:

In the competition among sports betting operators, FanDuel maintained its lead, reporting $18.3 million in receipts before deductions, drawn from a $254.2 million handle. This resulted in a strong 7.20% hold. DraftKings came in second, with $15.3 million in receipts from a $314.2 million handle, equating to a 4.87% hold.

BetMGM secured third place, with $4.8 million in receipts from $109.9 million in wagers, achieving a 4.37% hold. Caesars and Fanatics rounded out the top five, with Caesars reporting $2.4 million from $49.2 million (a 4.88% hold), and Fanatics securing $2.2 million from $59.3 million (a 3.71% hold).

Notably, ESPN Bet also reported a solid performance, with $1.9 million in receipts from $23 million wagered, leading to a robust 8.26% hold. The continued presence of top players such as these solidifies Arizona’s reputation as a competitive sports betting market.

Arizona’s sports betting industry contributed $2.5 million in taxes in March 2025, a decrease from the $3.8 million collected in March 2024. Online wagering accounted for the bulk of the tax revenue, bringing in $2.4 million, while retail sports betting contributed a smaller portion, totaling $45,744. These declines in tax revenues mirror the decrease in overall sports betting revenue, which has prompted concerns about the long-term growth prospects of Arizona’s sports betting sector.

Looking ahead, the Arizona Department of Gaming’s report highlights both the challenges and opportunities facing the state’s expanding sports betting market. With a significant increase in the amount wagered, the state’s sports betting infrastructure continues to evolve, though operators and regulators will need to address the volatility in revenue figures to ensure sustained growth in the future.