In just a few short years, Arizona has transformed into one of the most dynamic sports betting markets in the United States. Since the legalization of sports wagering in 2021, the Grand Canyon State has experienced explosive growth in both participation and revenue. With more than $5.4 billion in total bets placed through the first nine months of 2024 alone, it’s clear that sports betting has embedded itself into Arizona’s culture.
Fueling this momentum is a favorable regulatory environment, strong tribal partnerships, and a passionate sports fan base. With pro teams like the Phoenix Suns, Arizona Diamondbacks, and college powerhouses such as the Arizona Wildcats and Arizona State Sun Devils, the market is primed for continued expansion well into 2025 and beyond.
The Legal Landscape: How Arizona Got Here
Arizona’s journey into legal sports betting began in earnest in April 2021 when then-Governor Doug Ducey signed House Bill 2772 (HB 2772) into law. This historic legislation authorized both retail and mobile sports betting and marked a new chapter in the state’s gaming history.
What made Arizona’s model unique from the start was its dual licensing structure. It allowed up to 20 licenses split evenly between Arizona’s professional sports franchises and its tribal nations, many of whom have long managed successful casino operations. This inclusive system enabled major national sportsbooks to partner with local entities, creating a diverse and competitive marketplace from day one.
The first legal bets were placed on September 9, 2021, aligning with the NFL season kickoff. That strategic launch allowed operators to tap into peak fan engagement, and it has paid off ever since.
2024: A Year of Shakeups and Surges
If 2021 was the kickoff and 2022-2023 were growth phases, then 2024 was a rollercoaster. Arizona’s sports betting ecosystem underwent significant change, with major new entrants and high-profile exits redefining the landscape.
Notable Entrants
- bet365, one of the world’s largest sportsbooks, entered the Arizona market in February 2024 through a partnership with the Ak-Chin Indian Community. Along with launching operations, they committed a $1 million donation to the tribe.
- Fanatics Sportsbook debuted in April via an agreement with the Tonto Apache Tribe, bringing a fresh brand and innovative tech platform to Arizona bettors.
- Sporttrade, a unique sports betting exchange model from Philadelphia, went live in September in partnership with the Quechan Tribe of the Ft. Yuma Indian Reservation.
Market Exits
However, the year wasn’t without setbacks. Four operators pulled out of Arizona, citing stiff competition and U.S. market challenges:
- Unibet shut down in June as part of Kindred Group’s exit from U.S. markets.
- SaharaBets, tied to the now-defunct Arizona Coyotes NHL team, exited in July.
- SuperBook Sports left abruptly in July with little notice to customers.
- Betway exited in August following broader withdrawals from multiple U.S. states.
Despite these exits, Arizona’s betting market remains robust. As of the end of 2024, 13 legal sportsbooks are still operating, with strong performances from brands like FanDuel, DraftKings, Caesars, and BetMGM.
Through it all, Arizona remained resilient. According to the Arizona Department of Gaming, the state posted record-breaking handle numbers in October 2024, with $791 million in total bets placed — a testament to its deep and engaged betting audience.
Top Operators in Arizona
Despite the exits of some brands in 2024, Arizona’s sports betting market remains fiercely competitive and well-served. As of the end of the year, 13 sportsbooks operate legally in the state, giving bettors a wide range of platforms to choose from.
Leading Sportsbooks in the State
- DraftKings and FanDuel continue to dominate the market. In October 2024 alone, DraftKings handled over $261 million, while FanDuel followed closely with $252 million. Both operators offer seamless mobile apps, frequent promotions, and a vast array of betting markets.
- Caesars Sportsbook maintains a strong presence thanks to its brand recognition and ties to local sports teams and casinos.
- BetMGM and BetRivers are also notable players, offering user-friendly interfaces and extensive loyalty programs.
- ESPN BET, a new but fast-growing sportsbook, has been leveraging the media giant’s reach to gain market share quickly.
Meanwhile, international giants like bet365 and newer, more innovative platforms like Sporttrade are shaking up the scene by offering unique experiences. Sporttrade, for instance, uses a stock-exchange-style interface where bettors can “buy and sell” positions during a game, catering to a more active, real-time betting audience.
According to Betting AZ: What Sets Arizona Apart
Arizona isn’t just another state with legalized sports betting — it’s one of the most accessible and innovative betting markets in the country. According to bettingaz.com, several key factors make Arizona stand out:
Open Market Access
Arizona’s licensing system allows both tribal entities and professional sports teams to host sportsbook partners. This structure has created diverse competition and encourages innovation — unlike states with monopolies or overly restrictive frameworks.
Player-Friendly Environment
There are minimal restrictions on the types of bets allowed. Outside of college player props, politics, and award shows, bettors have access to a broad range of wagering options across all major sports.
Strategic Tribal Partnerships
Tribal communities in Arizona are deeply embedded in the sports betting landscape. These collaborations have not only provided mutual financial benefit but also strengthened the infrastructure and reach of legal betting options.
Year-Round Sports Culture
Arizona’s vibrant sports scene, from spring training baseball to pro football and college basketball, ensures that bettors are engaged all year long. Add in a growing population and tourism traffic, and you’ve got the perfect ecosystem for a thriving betting market.
Taxation and Economic Impact
Behind the scenes, Arizona’s sports betting boom is delivering substantial economic returns. The Arizona Department of Gaming reported that through September 2024, the state had taken in more than $5.4 billion in wagers for the year.
Tax Revenue Structure
- Retail sportsbooks are taxed at 8% of gross revenue.
- Online operators are taxed at 10%, a rate considered competitive compared to other states.
These tax revenues flow directly into Arizona’s general fund and help support public services, infrastructure, and education. In October 2024 alone, sportsbooks retained over $53.8 million in revenue, resulting in $2.4 million contributed to the state via taxes and fees.
Tribal gaming contributions also remain significant. In Q1 of FY2025, Arizona tribes contributed $43.9 million from broader gaming activities, further illustrating how the industry benefits both state and sovereign tribal interests.
Beyond direct revenue, sports betting has spurred job creation, technology investment, and tourism—especially around major sporting events and national betting holidays like the Super Bowl and March Madness.
Challenges and Controversies
Arizona’s sports betting market may be thriving, but it’s not without its challenges. As the industry matures, several pain points have emerged that stakeholders will need to navigate carefully.
Market Saturation and Competition
The influx of operators early on led to fierce competition. While that initially benefited consumers through aggressive promotions and bonuses, it also forced several sportsbooks to exit in 2024 due to unsustainable overhead and market share struggles. This kind of turnover raises questions about long-term profitability and whether smaller or mid-tier operators can survive in Arizona’s high-stakes environment.
Regulatory Caution
Compared to more progressive markets like New Jersey or Ohio, Arizona’s lawmakers and regulators have been relatively conservative. There’s little momentum for expanding betting options (e.g., esports, entertainment betting) or adjusting tax structures to stimulate more growth. While this caution provides stability, it could also limit innovation if not addressed in future legislative sessions.
Athlete Harassment and Responsible Gambling
One growing concern nationally—and now in Arizona—is the harassment of college athletes related to betting outcomes. According to recent reports, the NCAA and sportsbooks are working on frameworks to prevent abuse and educate users. Additionally, responsible gambling campaigns are expanding across the state, with the Arizona Department of Gaming emphasizing self-exclusion tools and promoting March as Problem Gambling Awareness Month.
The Future of Arizona Sports Betting
Looking ahead, all signs point to continued growth and evolution in Arizona’s sports betting landscape. According to projections analyzed by the Phoenix Business Journal, the industry was expected to grow more than 20% in 2024—a benchmark it’s on track to meet or exceed.
Stability Ahead
After a year of reshuffling, 2025 is expected to be more stable. Most of the anticipated sportsbook exits already occurred in 2024, and few new entrants are expected in the near term. This provides a solid foundation for current operators to deepen their customer relationships and roll out new features.
Technological Advancements
Platforms like Sporttrade are just the beginning of Arizona’s tech-forward betting future. Look for more exchange-based models, in-game betting features, and potentially AI-driven analytics tools that personalize betting experiences in real-time.
Legislative Watch
While lawmakers haven’t shown an eagerness to expand the betting menu or adjust tax rates, there’s a growing dialogue around topics like esports, micro-betting, and even cryptocurrency integration in gambling payments. Whether these topics gain traction depends on stakeholder pressure and public sentiment in the coming year.
How to Get Started with Sports Betting in Arizona
For new bettors or those just moving to the state, Arizona offers one of the most user-friendly environments to start placing legal wagers.
Step-by-Step Guide
- Be at least 21 years old and physically located within Arizona state lines.
- Choose a licensed sportsbook from the 13 currently operating (e.g., FanDuel, DraftKings, bet365).
- Register online or in person, providing valid ID and payment method.
- Make a deposit using secure options like ACH, debit cards, or PayPal.
- Claim a welcome bonus, such as risk-free bets or deposit matches.
- Start betting responsibly, using tools for deposit limits, time-outs, and self-exclusion if needed.
Responsible Gambling Resources
- Arizona Department of Gaming’s Self-Exclusion Program
- 1-800-NEXT-STEP (Arizona’s problem gambling hotline)
- Partner programs with national groups like the National Council on Problem Gambling (NCPG)
Best Times to Bet
Arizona’s sports calendar is packed year-round. From NFL season and college football to March Madness, NBA playoffs, MLB spring training, and UFC fights, there’s no shortage of action. Many sportsbooks also offer unique local promos tied to Arizona teams like the Suns, Cardinals, and Diamondbacks.
