Arizona Opens Applications for Sports Betting Licenses

The Arizona Department of Gaming (ADG) has said it will accept applications for sports wagering licenses from July 8 to July 19, 2024, as the state looks to grow its sports betting market. 

Arizona Looks to Fill Three Remaining Sports Betting Licenses

Currently, there are 17 active sports betting licenses in Arizona with a maximum cap of 20 allowed under state law. Eight licenses are associated with professional sports franchises while nine belong to tribal entities. The ADG has now announced it wants to fill the remaining slots so capacity is reached.

Applicants have been advised to review the application process and requirements set by the state on its official website, before making any submissions during this time frame as they will only be considered against established criteria for sports wagering in Arizona.

Since online sports betting began in the state in 2021, there has been significant growth in Arizona’s sports betting market, becoming one of few states that surpassed $1 billion in combined operator revenue and recording over $16 billion total sportsbook handle. One reason why this happened was because of the attractive 10% tax rate on mobile sportsbook revenues which is among the lowest nationwide.

New Entrants Eye Arizona’s Sports Betting Market, Despite FanDuel and DraftKings Dominance

In recent months there has been a lot more activity seen within the sector such as deals between bet365 with Ak-Chin Indian Community or Fanatics Sportsbook partnering up with the Tonto Apache Tribe. These examples show how tribes are trying different ways to attract more customers to their casinos and enhance their market share.

Having seen a $760 million monthly handle in March, the highest ever recorded, the ADG’s announcement is an indication of a strong sector with good participation and growth levels. FanDuel and DraftKings control nearly 70% of the market so new entrants will have to compete hard against them. 

However, Arizona remains attractive to potential operators due to the high profits that can be gained there as well as its location which strategically positions it for drawing gamblers from neighboring states such as Nevada or California.

Among those rumored to apply next are Circa Sports who work under favorable conditions while operating businesses in jurisdictions with low taxes and Prime Sportsbook which finds Arizona’s market advantageous according to some sources. However, the move by ADG to start receiving applications shows how Arizona wants to further boost its sports betting industry. The expansion aims to leverage the state’s growing population and its position as a major sports betting hub in the Southwest, offering lucrative opportunities for both established and emerging operators.