FanDuel Shuts PHX Arena Sportsbook, Plans New Lounge
FanDuel announced the closure of its sportsbook at PHX Arena, ending betting operations by July 24 and transforming the space into a new fan experience.
Sportsbook Bows Out
FanDuel’s sportsbook at PHX Arena, home of the Phoenix Suns, will cease gambling operations on July 24. The 7,400-square-foot venue, opened in September 2021 as Arizona legalized sports betting, is set to become a “FanDuel lounge” or a fresh fan-focused space.
The closure is a result of a seismic shift toward online betting, with over 99% of Arizona’s wagering now occurring via mobile apps.
Launched with fanfare as one of the first in-arena sportsbooks in the NBA, the PHX Arena FanDuel Sportsbook boasted five betting windows, 26 self-service kiosks, 40 HD TVs, a 35-foot video wall, an outdoor terrace, and a full-service bar.
Its vibrant setup aimed to draw older bettors hesitant about mobile apps, offering a courtside betting vibe. Yet, the numbers tell a grim story. In October 2024, the sportsbook scraped together just $32,516 in adjusted gross revenue, a speck compared to FanDuel’s $21.7 million online haul in Arizona.
Online Betting’s Dominance
The closure mirrors a national trend where retail sportsbooks are fading as mobile betting surges. In Arizona, mobile wagers accounted for $83.3 million of November 2024’s $84.1 million in adjusted gross betting revenue, leaving retail with a mere $773,633.
FanDuel’s PHX Arena location bled money, paying out more in winnings than it took in bets in four of the last six months reported. Since March 2024, it never topped $215,000 in monthly revenue, and it hasn’t hit $300,000 since September 2023.
The sportsbook’s woes stem from shifting bettor habits. Arizona’s January 2024 betting handle reached $706 million, but only $8 million came from retail locations.
FanDuel’s in-arena spot, despite its glitzy setup, couldn’t compete with the convenience of mobile apps. High operational costs and low foot traffic hurt, as fans increasingly bet from phones rather than arena kiosks.
Similar struggles led to retail sportsbook closures at venues like Cleveland’s Guardians and Cavaliers facilities, now repurposed for profit.
FanDuel plans to reimagine the 7,400-square-foot space into a “FanDuel lounge” or a new fan experience, with details to be revealed soon.
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