Arizona has quickly emerged as one of the most dynamic sports betting markets in the United States. Since legalizing sports betting in 2021, the Grand Canyon State has witnessed exponential growth in betting handle, the entry of top-tier sportsbooks, and a surge in public engagement with both online and retail wagering. With its combination of major league sports teams, passionate fan bases, and favorable regulatory conditions, Arizona has become a model for other states looking to tap into the sports wagering industry.
This growth is not just a fluke — it’s the result of a well-structured legislative framework, strong tribal partnerships, and a keen focus on consumer engagement. Industry giants like DraftKings, FanDuel, and bet365 have capitalized on Arizona’s enthusiastic market, launching competitive promotions and investing heavily in local partnerships. The result? A thriving industry that’s projected to grow more than 20% year-over-year into 2025 and beyond.
Legalization and Market Launch: A Quick Recap
The journey of legal sports betting in Arizona began with the signing of HB 2772 by then-Governor Doug Ducey in April 2021. This landmark legislation not only legalized sports betting but also modernized the state’s tribal gaming compacts. The law authorized up to 20 sports betting licenses — 10 allocated to professional sports franchises and 10 to tribal casinos — offering a robust foundation for both commercial and tribal participation.
On September 9, 2021, coinciding with the kickoff of the NFL season, Arizona launched its first legal sportsbooks. This strategic timing allowed operators to capitalize on peak betting interest, and the response was overwhelming. In just a few months, Arizona rapidly climbed the ranks to become one of the top sports betting states in the U.S. by handle, thanks to its efficient rollout and consumer-friendly platform integrations.
2024: A Year of Transformation
The year 2024 marked a transformative phase for Arizona’s sports betting ecosystem. While the state enjoyed growth in betting volume and tax revenues, it also underwent notable market shifts with several sportsbooks entering and exiting the scene.
New Entrants Bring Fresh Competition
Three new sportsbooks launched operations in 2024:
- bet365 debuted in February via a partnership with the Ak-Chin Indian Community and even made a $1 million tribal donation.
- Fanatics Sportsbook announced its entry in April through a deal with the Tonto Apache Tribe, introducing a new app tailored to Arizona users.
- Sporttrade, a sports betting exchange, joined the market in September in collaboration with the Quechan Tribe.
Departures Reflect Competitive Pressures
Despite the inflow of new platforms, four sportsbooks exited the Arizona market in 2024, including:
- Unibet, which pulled back from the U.S. entirely.
- SaharaBets, tied to the now-defunct Arizona Coyotes NHL team.
- SuperBook Sports, which abruptly ceased operations.
- Betway, whose parent company cited intense U.S. competition as a primary reason for withdrawal.
These shifts underscore the competitiveness of Arizona’s betting environment, where only the most adaptive and consumer-focused operators can thrive.
Despite these changes, the total handle continued to soar — with $5.4 billion in bets placed through September 2024 alone and a 9.5% hold percentage, according to the Arizona Department of Gaming. This underscores a market that remains not only resilient but poised for sustained expansion.
DraftKings: A Market Leader in Arizona
Among the many operators vying for attention in Arizona’s bustling sports betting market, DraftKings has solidified its position as a top-tier sportsbook. With a strong presence both online and on the ground—most notably through its retail sportsbook at TPC Scottsdale—DraftKings continues to attract both casual bettors and seasoned sharps.
In October 2024 alone, DraftKings processed more than $261 million in wagers across its mobile app and retail venue, outpacing most competitors in the state. What sets DraftKings apart is its commitment to offering a premium user experience, from a sleek interface to innovative betting markets that span everything from NFL Sundays to international cricket.
One of the key factors behind DraftKings’ success is its strategic use of promotions to drive user engagement. New users in Arizona can take advantage of the DraftKings Arizona promo, which allows bettors to receive $200 in bonus bets after placing a qualifying $5 wager. No promo code is required, and the bonus is awarded instantly, making it one of the most attractive offers in the state.
Beyond welcome bonuses, DraftKings invests heavily in user retention through:
- Same-game parlay boosts and daily odds enhancements
- Free-to-play pools with real cash prizes
- A tiered Dynasty Rewards program offering Crowns and benefits redeemable for experiences, entries, and DK Dollars
DraftKings’ ongoing commitment to innovation and customer satisfaction keeps it ahead of the curve in Arizona’s competitive sports betting landscape. With new features rolling out regularly, it remains a go-to choice for those looking to elevate their betting experience.
Regulatory Oversight and Tribal Partnerships
At the heart of Arizona’s sports betting structure is the Arizona Department of Gaming (ADG), which provides strict oversight, ensures compliance, and promotes responsible gambling through initiatives like “Check Before You Bet.” In March 2025, the ADG reported $30.8 million in tribal gaming contributions for Q3, demonstrating the significant economic impact of the industry.
The ADG continues to play a vital role in monitoring licensed operators, issuing quarterly revenue reports, and enforcing consumer protection standards. It also recently flagged concerns about a rise in fraudulent online casinos targeting Arizonans, highlighting the importance of using only licensed and regulated platforms.
Another cornerstone of Arizona’s success has been its collaborative model with tribal communities. The state granted 10 of its 20 available sports betting licenses to Native American tribes, enabling a powerful blend of sovereign rights and commercial opportunity. These partnerships — like bet365’s with the Ak-Chin Indian Community or Fanatics’ with the Tonto Apache Tribe — not only provide economic benefits to tribal nations but also ensure broader geographic reach and inclusivity in Arizona’s betting scene.
Challenges Faced by Operators
While Arizona has become a hotbed for sports betting innovation and user engagement, the road hasn’t been smooth for every operator. In fact, 2024 saw the exit of four sportsbooks from the state, highlighting just how competitive and challenging the market has become.
Major Exits in 2024:
- Unibet: Withdrew as part of a larger U.S. market exit by parent company Kindred Group.
- SaharaBets: Shut down after the dissolution of the Arizona Coyotes, which were closely tied to the brand.
- SuperBook Sports and Betway: Both exited citing difficulty gaining a foothold in the U.S. market and high competition from well-established American platforms.
These departures signal a market shakeout — only the most agile, well-capitalized, and consumer-centric sportsbooks will survive. For some operators, Arizona’s high customer acquisition costs and intense promotional wars proved unsustainable.
Additionally, the state’s regulatory environment, while business-friendly, still requires strict adherence to licensing, consumer protections, and responsible gambling mandates. This makes Arizona a regulated yet demanding market where operational excellence is mandatory.
The Road Ahead: Growth Forecasts for 2025 and Beyond
Despite market turbulence and operator consolidation, the outlook for Arizona sports betting remains bullish. Analysts and state regulators are forecasting continued growth exceeding 20% year-over-year into 2025, driven by both market maturity and technological innovation.
According to data from the Arizona Department of Gaming and insights shared by ABC15, key growth drivers include:
- Increased Public Adoption: With legal betting now normalized, more residents are participating, particularly during NFL, NBA, and March Madness seasons.
- Mobile-First Usage: Over 90% of bets are placed via mobile apps, fueling higher bet frequency and faster market cycles.
- Tribal and Retail Expansion: Partnerships with tribal communities continue to open up new markets and offer in-person betting options to new demographics.
With Arizona consistently posting record-breaking handle numbers and introducing new entrants like Fanatics and Sporttrade, the competitive ecosystem is expected to stabilize and mature further. Unlike newer markets still finding their footing, Arizona’s regulatory clarity and consumer awareness give it a solid foundation for sustained and scalable growth.
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