Arizona sports betting hits near-record levels in January
Arizona fell just short of setting new sports betting records in January, with both revenue and handle reaching their second-highest monthly totals in the Grand Canyon State.
Consumer spending on sports betting in Arizona hit $864.2 million in January. This is 22.3% higher than last year and 1.8% higher than in December 2024.
However, it falls 3.7% short of the state record of $897.6 million set in November last year.
Data from the Arizona Department of Gaming shows player spending on online betting was $857.9 million. A further $6.3 million was wagered at retail sportsbooks in January.
Adjusted gross revenue before free bet deductions hit $83.6 million, beating last year by 17.9% and 63.6% more than December. Some $83.5 million came from online betting and $105,099 retail.
Free bet deductions topped $30.4 million in January. Adjusted gross event wagering receipts after this was $53.2 million, up 15.2% year-on-year and 106.2% ahead of December. Online accounted for $53.1 million of the total, with retail’s share unchanged at $105,099.
As for hold, based on adjusted gross revenue prior to the free bet deductions, this stood at 9.67%. After said deductions, monthly hold was 6.16%.
FanDuel still the one to beat in Arizona
Looking to operators, FanDuel continues to lead the market with $34.8 million in pre-free bet deduction revenue. Having taken $287.9 million in bets across online and retail, this left a 12.09% hold.
DraftKings remains the closest challenger, collecting $26.5 million from $271.8 million in handle, meaning a hold of 9.75%. BetMGM completes the top three with $9.8 million from $100.4 million for a 9.76% hold.
Caesars was the best of the rest at $3.4 million off $48.3 million, leaving a 7.04% hold. Not far behind was Fanatics at $3.4 million off a $55.6 million handle, resulting in a hold of 6.12%.
Bet365 was next with $2.6 million from $42 million for a hold of 6.19%. ESPN Bet was the only other operator to surpass the $1 million revenue mark. It drew $1.8 million from a $27.9 million handle, leaving a 6.45% hold.
In terms of tax, Arizona drew $5.3 million from sports betting in January. This includes $5.3 million from online betting, which is taxed at 10%, and $8,408 from retail, which faces an 8% taxation rate.