Promotions Drive Sports-Betting Growth; Skepticism Grows

Since Arizona legalized sports betting in 2021, bettors have wagered more than $26 billion there, producing roughly $140 million in state revenue and sustaining annual growth of 15–20% as the market matures. Major national sportsbooks — led by market leader FanDuel and including DraftKings, BetMGM and newer entrant Fanatics — operate in Arizona and have used aggressive welcome promotions (examples: FanDuel’s bet-$5-to-get-$300, DraftKings’ bet-$5-to-get-$200, Fanatics’ up-to-$250 FanCash and large BetMGM offers) to attract customers. Other states are also seeing big financial impacts: Colorado reported more than $3.7 million in sports-betting tax revenue last month (a 56% jump from August 2024) that will fund water-conservation projects, while markets like New Jersey continue heavy promo advertising. At the same time, surveys and reporting show growing public skepticism about the social effects of legal sports betting, particularly among younger Americans and men. The expansion has renewed focus on problem-gambling resources and on calls for greater transparency around promotional incentives and publisher affiliate compensation tied to signups.