Arizona sportsbooks generated $40.7m in revenue for July, with FanDuel narrowly surpassing DraftKings. FanDuel posted $13.9m, a 49.2% YoY increase, while DraftKings followed at $13m, down 2.5%. BetMGM secured third with $5.2m, and Fanatics surprised the market with $3.2m, overtaking Caesars ($2m). bet365 also edged ahead of Caesars with $2.1m.
Why Mobile Betting Crushed Retail Locations
Total wagers hit $463.7m, up 13.1% YoY, but nearly all of it came online. Mobile platforms accounted for $462.5m of handle, while retail sportsbooks saw just $1.2m, a steep 77.5% decline from July 2024. Only BetMGM, Caesars, FanDuel, and DraftKings still run retail books, collectively pulling in just $104,581 for the month—down $180,000 YoY.
What Regulators Warned Operators About
The Arizona Department of Gaming issued warnings in September, instructing licensed operators to avoid partnerships with event contract trading firms or risk losing licenses. The state previously sent cease-and-desist letters in April to six unlicensed operators, including ARB Gaming, MyBookie, and BetUS, underscoring its strict enforcement stance.
How This Affects Major Operators
FanDuel’s August 20 partnership with CME Group may face scrutiny, as regulators warned against event-based contracts just weeks later. Other operators are likely re-evaluating partnerships to avoid licensing risks. Despite these regulatory pressures, Arizona’s market continues steady growth, with July revenue climbing 40% YoY.
