The Arizona Department of Gaming reported a record $87.4 million in gross sports betting revenue for December on Friday, a fitting conclusion to 2025, in which sportsbooks had the upper hand for much of the year.
The haul by Grand Canyon State sportsbooks bettered the previous record of $86.3 million set in November 2024 and marked the fourth time operators claimed at least $85 million in gross winnings over the last 14 months. The 10.6% hold against $822.1 million handle ranked ninth in state history. Arizona sportsbooks collectively posted monthly double-digit win rates five times last year.
Revenue was up 71.1% in a stark reversal from the end of 2024, while a 17% drop in promotional spend to $19.5 million contributed to a record adjusted-gross-revenue total of $65.9 million. That was 155.3% higher than December 2024’s total and easily cleared the previous high of $57.5 million established in November 2024.
The state collected $6.6 million in tax revenue. Its $27.4 million in receipts for the first six months of the fiscal year are running $7.7 million ahead of the previous year’s pace.
It’s time for a new industry standard
When sports betting began its initial state-by-state expansion following the overturning of PASPA in 2018, the industry’s standard hold was established at 7%. But in the seven-plus years, the evolution of sports betting, with an emphasis on parlays and same game parlays accounting for anywhere between 25% and 33% or higher of total handle, has rendered this percentage antiquated at best and realistically outdated.
The unaudited known nationwide hold for 2025, which excludes Tennessee and Nebraska figures, was nearly 10.07% with $16.15 billion in gross revenue from $160.48 billion worth of wagers. The actual hold is likely slightly higher, considering Tennessee operators outperformed national trends most months before switching to taxing the handle in July 2023.
Missouri’s late entry into the ecosphere was the equivalent of putting sprinkles on a cupcake of rich revenue. Operator winnings were up 22.5% from 2024, a total of nearly $3 billion, and easily outpaced the 11.1% rise in handle.
Those dollar signs also flashed for state tax coffers, as the $3.76 billion accrued was up 34.6% from 2024. New York continues to skewer totals by virtue of its 51% tax on mobile operators, but receipts were up by a total of $966.1 million.
In terms of December year-over-year numbers, the Show Me State’s launch prevented a slight decline in handle: the $15.85 billion wagered was up four-tenths of a percentage point, but December revenue more than doubled to $1.86 billion. The $429.3 million in state-specific tax receipts was also more than double than December 2024, up close to $218 million.
The beat goes on in Arizona
The final month of 2025 maintained the relative status quo of sports betting in Arizona. FanDuel and DraftKings were a clear-cut 1-2, but it was a narrow gap between the eternal rivals.
FanDuel collected $30.1 million in revenue, while attaining an 11.93% hold from $252.7 million handle. DraftKings’ win rate was one-hundredth of a percentage point lower (11.92%), as it kept $28.7 million of its $240.7 million worth of bets placed.
DraftKings, though, had notably less promotional spend for the month at $4.1 million compared to FanDuel’s $6.5 million. DraftKings’ overall spend of $74.7 million for the calendar year was down 5% from 2024, while FanDuel’s outlay of $100.4 million represented an 18% increase.
BetMGM remained on its island in third place for all three metrics, spending $3.3 million on credits and bonuses, while claiming $9.6 million in winnings from $99.4 million handle. Despite an 11.2% drop in handle from the previous December, BetMGM eclipsed $1 billion handle in a calendar year for the first time since 2022.
Fanatics continues to keep bet365 at arm’s length for fourth place, topping $80 million handle for the third straight month. It had a pedestrian 7% hold in keeping $5.8 million in revenue and outspent its English counterpart on the promotional side with $2.1 million in credits and bonuses.
Bet365 was again behind Caesars for fifth in handle, but a 9.6% hold on $45.3 million worth of wagers resulted in a No. 5 spot for revenue at $4.4 million. Caesars notched an 8.1% win rate, leading to $3.8 million in winnings.
TheScore Bet’s first month of business in Arizona can be viewed as positive in terms of year-over-year results. The Penn National-branded sportsbook’s $1.6 million won was more than double ESPN Bet’s total to close out 2024, but the $18.1 million handle was down 20.9%.
Regardless of Penn’s sportsbook operator, 2025 was much better than 2024. The 8.9% hold was 2.6 percentage points higher than the previous year, and the $23.1 million in gross winnings was up close to 40%, despite handle slipping 7.5% to $243.8 million.
