Arizona was one of the first states to legalize sports betting following the 2018 decision by the Supreme Court that declared the Professional and Amateur Sports Protection Act (PASPA) unconstitutional. In that ruling, they struck down a federal law that had been in place since 1992, effectively banning commercial sports betting in most states.
Since then, the industry has experienced significant growth. Many online operators have been able to access the market with licenses, providing a service to bettors who wish to engage further with their favorite sports.
Since September 2021, residents have been able to place sports bets online through licensed operators, with the Arizona Department of Gaming issuing up to 20 mobile licenses. This has been split between tribal and professional sports entities.
Online gambling has often been the most popular with residents, as they can make use of a bet app download on their mobile device. They can simply go to their respective app store, download the app, and place bets conveniently, which is a huge positive when it comes to sports betting because of the live element and fast nature of the activity.
How has sports betting in Arizona performed?
Arizona has legalised sports wagering for residents aged 21 and above, offering two options: online and retail. They are free to place bets using whichever form they wish, with there being no restrictions on either. As a result, the industry has been able to boom. According to statistics, the state consistently ranks among the top U.S. sports betting markets in terms of total handle and revenue.
Total handle refers to the amount of money wagered by bettors, while gross revenue represents the amount retained by sportsbooks after making payouts on successful bets. The hold is the percentage of handle that has been retained as revenue. Arizona has set a tax rate of 10% for online sports betting operators with a license and 8% for those operating in a retail-based model.
According to available figures, March 2025 saw a record handle achieved, although the revenue obtained by the sportsbooks was lower. This was because bettors were achieving more winners, while also claiming more promotional offers. Still, handle growth had been achieved based on year-on-year figures, with January 2025 being up 22.3% based on the year before.
To provide further context, findings have revealed that Arizona also ranks seventh nationally in total sports betting revenue, with the market dominated by online/mobile betting. Retail sportsbooks continue to contribute significantly, but just with a smaller share of the market.
The majority of the tax generated from the sports betting industry is allocated to the Arizona State General Fund. This allows the administration to use the money received to try and improve various aspects across the state, including infrastructure, healthcare, emergency services, promoting tourism, protecting wildlife, and providing resources to combat problem gambling.
What trends are being experienced and can be expected?
The growth experienced by Arizona cannot be ignored. The market continues to thrive, with the industry having generated more than $6 billion in annual handle for the last three consecutive years.
At the same time, the state has processed more than $16 billion in total wagers since going legal in September 2021, while the market continues to expand. Monthly handles are frequently exceeding a total of $800 million, although there has been a decline in revenues (as explained earlier).
Could Arizona legalize the online casino market?
As of July 2025, Arizona does not permit real-money online casino gambling. The activity remains illegal, despite discussions about potentially changing the law in the future; however, no legislation has been passed.
As a result, the Arizona Department of Gaming explicitly warns residents about fraudulent online casino sites and emphasizes that online casino gaming is not permitted under state law.
Land-based casinos are legal in the state, with more than 20 tribal options for residents to choose from. Each of these offers slots, table games, and poker. Native American tribes operate all of them under compacts with the state.
Social casinos, known as sweepstakes casinos, are legal in the state and offer an alternative to online casinos. They operate almost in exactly the same way, except that they use virtual currencies and do not employ a traditional gambling model. Still, this could suggest that Arizona may look to implement legislation in the future for real-money options, especially if it can enjoy the same financial success that the online sports betting industry is providing.
Final Thoughts
Arizona is a national leader in the sports betting market, with impressive figures having been generated since the activity became legal almost four years ago. With the market continuing to show strong performances in terms of betting handle and revenue generated, as well as being a significant contributor to state taxes, the market appears to remain thriving, and it’s unlikely to see its bubble burst anytime soon.
