Arizona's Sports Betting Market Grows in February 2025

Arizona Department of Gaming (ADG). The state’s sports betting market has shown consistent growth since its legalization in 2021, reflecting a broader national trend.

Revenue and Market Share

In February 2025, Arizona’s sportsbooks generated around $4 million in privilege fees, the taxes paid by licensed operators. This figure represents a significant portion of the state’s revenue from sports betting activities. The market remains dominated by major operators, with FanDuel and DraftKings leading the pack. Together, these two platforms for a substantial share of the state’s total handle, underscoring their strong presence in the Arizona market.

Regulatory Oversight and Legal Developments

The ADG continues to monitor and regulate the sports betting landscape in Arizona, ensuring that all activities comply with state laws. Recent actions have included addressing unlicensed operators and enforcing regulations to maintain the integrity of the market. These efforts are part of the ADG’s ongoing commitment to providing a safe and fair environment for bettors in the state.

As Arizona’s sports betting market continues to expand, stakeholders are closely watching its evolution. The sustained growth in wagers and revenue suggests a robust future for the industry. However, ongoing regulatory oversight will be crucial to address emerging challenges and ensure the market’s long-term success.

In other news

While Arizona’s legal sports betting market continues to thrive with rising revenues and player engagement, the state is simultaneously tightening enforcement against unlicensed activity. This includes recent legal actions targeting platforms like Kalshi and Crypto.com for unauthorized event wagering.

Arizona’s Department of Gaming has issued cease-and-desist letters to Kalshi and Crypto.com, accusing both companies of conducting illegal event wagering. The ADG claims their contract-based offerings, which depend on predicting sports outcomes, violate Arizona law by effectively accepting wagers without a license. As the letters state, “Whether a contract will pay its buyer depends on whether that person correctly predicted the result of the event… This amounts to [the company] taking wagers.”

Arizona s six other states—Nevada, New Jersey, Maryland, Montana, Ohio, and Illinois —that have already acted against Kalshi. The ADG rejected the companies’ claims that their operations fall under federal Commodity Futures Trading Commission (CFTC) oversight, asserting, “There is no meaningful difference between buying one of your offered contracts and placing a bet with any other sportsbook.”

Source:

“February Sports Betting Figures – Arizona Department of Gaming”, News Release. May 29, 2025