TLDR
- Arizona became the eighth state to surpass $2 billion in gross sports betting revenue after reporting $65.6 million for February 2025
- The state accepted $699.7 million in wagers during February, marking the fourth consecutive month Arizona’s handle exceeded Nevada
- Sportsbooks spent $24.9 million in promotional credits and bonuses during the month, pushing all-time promotional spending over $800 million
- FanDuel led with $26.5 million in gross winnings from $219.4 million in handle, while DraftKings topped promotional spending at $8.2 million
- Arizona has operated mobile sports betting since September 2021 and levies an 8% tax on retail betting and 10% on mobile betting
Arizona crossed a major threshold in February 2025 by becoming the eighth state to surpass $2 billion in all-time gross sports betting revenue. The Arizona Department of Gaming reported $65.6 million in winnings for the month before federal excise taxes and promotional deductions.
The February total marked the sixth-highest revenue month in 42 months of wagering. Arizona launched sports betting in September 2021.
The state accepted $699.7 million in wagers during February. This represented a 9.8% increase from February 2024.
Running Top 10 post-PASPA #SportsBetting handles by state (*-thru April)
1 New York* $67.62B
2 New Jersey* $62.72B
3 Nevada* $48.5B
4 Illinois $48.41B
5 Penn.* $38.18B
6 Colo.* $24.24B
7 Arizona (thru Feb.) $23.88B
8 Virginia $22.64B
9 Indiana* $22.01B
10 Michigan* $21.11B— Chris Altruda (@AlTruda73) May 28, 2025
Arizona exceeded Nevada in handle for the fourth consecutive month. The state continues to compete with its northern neighbor as the top handle generator west of the Mississippi River.
Super Bowl LIX contributed to increased betting activity during the month. The state’s 14 mobile sportsbooks spent $24.9 million combined in promotional credits and bonuses to attract bettors.
The promotional spending was down 0.8% from February 2024. However, all-time promotional spending by operators since launch cleared $800 million.
Tax Revenue and Operator Performance
Arizona collected nearly $4 million in tax revenue based on $39.8 million in adjusted gross revenue. The state applies an 8% tax rate on retail betting and a 10% rate on mobile betting.
- FanDuel extended its strong early 2025 performance with a second straight month of 12%-plus hold. The platform generated $26.5 million in gross winnings from $219.4 million in handle.
- FanDuel spent $8 million on promotions in February after a record $13.5 million promotional spend in January. This resulted in $18 million in adjusted gross revenue for the month.
- The sportsbook has accounted for more than 25% of known promotional spending in Arizona. Its all-time promotional outlay stands at least $237.7 million.
- DraftKings led all mobile sportsbooks in promotional spending for February with nearly $8.2 million. This helped the platform edge FanDuel in handle at $220.3 million.
- DraftKings posted a 9.6% win rate and claimed $21.1 million in gross revenue. The February total pushed DraftKings over $600 million in all-time winnings in the state.
- BetMGM reduced its promotional spending slightly with a near-$3 million outlay. This was down 14% compared to February 2024.
- BetMGM’s revenue surged 16.4% to $7.1 million. The platform achieved a 9% hold on $78.7 million in wagers.
Second-Tier Operators Make Gains
Fanatics and bet365 have established themselves in a second tier behind the “Big 3” of FanDuel, DraftKings, and BetMGM. Both platforms have increased their market presence in recent months.
Fanatics topped $50 million in handle for back-to-back months for the first time. The platform accepted $50.1 million in wagers during February.
The sportsbook entered Arizona in April 2024. Its promotional spending has been at least $1.3 million every month since launch.
Fanatics exceeded $2 million in promotional spending only in September and October to capitalize on NFL wagering. Its total promotional spend stands at least $19.8 million in credits and bonuses.
This represents 72.2% of its $27.4 million in gross revenue. Fanatics posted a 6.5% hold for February to claim $3.3 million in gross winnings.
The platform generated $1.4 million in adjusted gross revenue after spending $1.7 million on promotions. Fanatics reported zero adjusted gross revenue in its first two months of operation.
bet365 began its second year in Arizona with a record handle just shy of $49 million. The England-based operator started accepting bets in the state on February 5, 2024.
Year-over-year handle more than doubled for bet365. The platform spent $2.3 million on promotions, marking the sixth consecutive month with seven-figure promotional outlay.
bet365’s promotional spending has ranged from a low of $863,095 to a peak of $3.4 million. Its total spend in Arizona stands at least $24.6 million.
The sportsbook reported no adjusted gross revenue for four months since launch. bet365 totaled $2.8 million in gross winnings for February with a 5.6% hold.
The platform generated just $325,844 in adjusted gross revenue for the month. bet365’s promotional spend equals 77.5% of its $31.8 million in gross revenue.
National February Performance
Arizona’s February figures completed the national picture for the month. Total U.S. sports betting reached $12.53 billion in wagers.
This represented a 10.6% increase compared to February 2024. The comparison is not exact because North Carolina did not launch sports betting until March 2024.
North Carolina contributed to a 38.3% year-over-year increase in gross revenue. National gross revenue totaled $1.2 billion for February.
The 9.9% hold was based on $12.1 billion in handle from all states except Tennessee. Revenue figures of $1.2 billion included all states except Nebraska.
The national hold was nearly two percentage points higher than February 2024. More than $1.07 billion in adjusted gross revenue was reported for February.
Total state tax receipts reached $262.4 million when including Tennessee and Nebraska. This marked an increase of nearly $53.4 million from the previous year.
Eighteen of 32 states that report handle and revenue had a collective hold of 10% or higher. Another six states exceeded 9% hold.
The Arizona Department of Gaming does not publish Super Bowl-specific betting results for individual operators. The 9.4% overall hold for February suggests operators likely performed similarly to other states during the Super Bowl betting period.
