'Fighting demons': Sports betting surge in AZ breaks records, demand for addiction services increases

PHOENIX - In 2021, Arizona went all in on legalized sports betting. Recently, the state has seen record-breaking numbers, but the house always wins. Sportsbooks continue to collect a large majority of the revenue while the state gets a much smaller cut. Meanwhile, more gamblers are seeking help for addiction. 

March Madness is underway, but these days, gamblers don’t have to come to brick-and-mortar sportsbooks to win big. They’re mostly on their phones, chasing their losses as the state’s problem gambling division is getting more texts for help. 

Local perspective:

The Phoenix market is a major hub for professional sports, well-represented in the biggest leagues – namely the NFL, MLB, and NBA. 

Nearly 40 U.S. states have some form of legalized sports betting. In four years, Arizona jumped into the top 10, ranking seventh in the amount of money wagered by bettors, behind states like New York, New Jersey, and Nevada, according to data collected by Legal Sports report. 

Gamblers in Arizona have wagered $22.3 billion as of November 2024 per the Arizona Department of Gaming. So, is this a betting boom? 

What they're saying:

"It’s not a boom for the people of Arizona or for the people of this country. The only people who it's a boom for are the people that own the gambling companies. So, they're making money hand over fist," said Les Bernal, National Director of Stop Predatory Gambling. "But everyday citizens, especially young males in Arizona, are losing thousands and thousands and thousands of dollars." 

Calls to Arizona’s Division of Problem Gambling helpline have increased in each of the last four years. With every sports betting advertisement, you’ll see a 1-800 number in the fine print. 

"We are seeing an increase in calls to our helpline. We're seeing an increase in people seeking out treatment services that we subsidize through our division," said Elise Mikkelsen, Director of the Arizona Division of Problem Gambling. 

‘Let’s get some money’ 

Frezzy Mendez is a husband and father of three, raising his family in a small west Phoenix apartment. He’s finally ready to admit he has a problem. 

"I'm like fighting demons. And this is the truth, you know what I mean? … I just see like, here's a team that I know is going to get destroyed. I already know. You know what I mean? So, I got an extra hundred bucks, an extra thousand bucks… And I really don't," said Mendez. 

Since Arizona legalized sports betting in 2021, Mendez has wagered nearly $140,000, mainly through his FanDuel app. He’s won $128,000 and is still in the red but says the high is like nothing else. 

"Winning, taking money from Vegas, from the casinos through sports betting is like a high. I can’t compare it to anything else, and I'm not talking about winning 40 bucks. I'm talking about winning thousands. I'm here talking about ‘let's get some money,’" said Mendez. 

By the numbers:

In November 2024, Arizona saw a record-breaking handle with $897 million wagered – blowing past October’s sports wagers of $791 million. 

To break down November, sportsbooks paid out winnings of $811 million but kept $84.1 million prior to the deduction of $26.6 million in free bets. The $57.4 million dollars left for sportsbooks is hit with "privilege fees" – commonly known as a sales tax, which paid Arizona $5.7 million that month. 

‘It’s a roller coaster’ 

In the age of smartphones, placing bets through mobile apps is normal. In fact, 99 percent of the money wagered last November was mobile bets. The numbers show DraftKings, FanDuel, and BetMGM are the most popular for wagers. Mendez says the options are endless, even betting on video game streamers. 

From gaming to pro tennis, betting anywhere from a hundred bucks to a thousand. 

"I bet $944 for this guy to win, and if I remember correctly, they lost by two points. Two points and again this is a video game," said Mendez. 

"So, you see this roller coaster," FOX10 Investigator Justin Lum said to Mendez. 

"Exactly, it’s a roller coaster. Exactly what it is," Mendez replied. 

"Go back to work and at work I’m thinking about what bets I’m gonna make next," he said. 

"That is the number one indicator of somebody who's going to become an addictive gambler. And so, you would think. And you don't need a PhD in addictive science to know that everyone knows that chasing losses is the number one indicator," said Bernal. 

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What's next:

The state’s helpline is not only taking calls for problem gambling. Texts doubled from 610 in the fiscal year of 2023 to 1,202 in 2024. Motivational messaging subscriptions have also increased year by year. 

"We know that that's a modality that younger people prefer. And I think people in general prefer the anonymity of that texting option. So, we've really seen that taken off," said Mikkelson. 

Presence is key as sports betting continues to ramp up. 

"We have marketing campaigns making sure we're getting the word out on social media, television and radio so that people know that they can call our number, text our number," said Mikkelson. 

But as Arizona tries to help gambling addicts, it won’t stop collecting their money. There’s a 10% tax on vendors for online betting and 8% for retail bets. Since legalization, around $112 million has gone to state coffers. 

"The state goes to great lengths to give the appearance that people are being protected, that somehow, we have these hotlines and we'll send you messages if you're having a problem. The business model for online gambling operators and in partnership with the State is based upon the addicted gambler," said Bernal. 

Bernal says regulations on advertising are needed to help the next generation of eligible gamblers. 

‘I just want to be normal’ 

After spending time with Mendez, it became clear the answer to this question depends on winning and losing. Will he quit sports betting? 

"I don't want to say yes. I don't want to say no. But just to me, for me to be betting over $100,000 in three years and only be down $8,000 -- to me, it's actually kind of a plus, honestly. It's like going to the casino and only coming down $100," said Mendez. 

But as he talks about his young family, starting a business, and buying a house, a sobering moment takes over. Mendez knows how easy it is to get back in the game. 

"I just want to be normal. I hate that sports betting became legal here. I really do." 

What we know:

Sports gambling revenue goes to the state’s general fund. 

Contributions can fund education, emergency services, wildlife, and tourism budgets. 

Mikkelsen tells FOX10 a peer support and recovery program are in the works to help those who do not need treatment but are looking for other ways to address issues they may have. 

If you or someone you know may have a gambling problem, help is available. Call 1-800-NEXTSTEP or text NEXTSTEP to 53342.

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