This initiative aims to introduce at least one operator partnering with a tribal gaming group and another with a professional sports team, thus enhancing the diversity and competitiveness of the market.
This expansion underscores Arizona’s commitment to offering a dynamic and consumer-friendly sports betting environment. By adding new operators, the state aims to provide bettors with more choices, better services, and innovative betting options. The introduction of new operators is expected to stimulate competition, encouraging existing and new sportsbooks to improve their offerings and customer experience.
History of Sports Betting in Arizona
The journey of sports betting in Arizona began on April 15, 2021, when Governor Doug Ducey signed House Bill 2772 into law. This pivotal legislation legalized both retail and online sports betting, setting the stage for a significant transformation in the state’s gaming industry. The Arizona Department of Gaming (ADG) was tasked with developing the regulatory framework and overseeing the licensing process.
By September 9, 2021, the first sportsbooks launched in Arizona, strategically aligning with the NFL season start. The state initially granted ten licenses to tribal casinos and ten to professional sports entities. This dual approach reflected Arizona’s unique gaming landscape, which blends tribal and commercial interests.
Major operators like FanDuel, DraftKings, BetMGM, and Caesars were among the first to enter the market, partnering with local tribes and sports teams. FanDuel, for example, collaborated with the Phoenix Suns to launch a sportsbook at the Footprint Center. DraftKings partnered with the PGA Tour to open a sportsbook at TPC Scottsdale, while BetMGM joined forces with the Gila River Indian Community. Caesars Sportsbook opened at Chase Field, home to the Arizona Diamondbacks.
These early entries were crucial in establishing Arizona as a significant player in the sports betting industry. The state’s regulatory framework ensured a smooth rollout, and the market quickly gained traction, with millions of dollars in bets placed each month.
Throughout 2022 and 2023, Arizona’s sports betting market continued to thrive. The ADG’s effective oversight and the competitive environment fostered by the initial operators contributed to this success. By March 2024, the state’s monthly sports betting handle had reached $759.8 million, underscoring the sustained growth and popularity of sports betting among Arizonans.
Potential Effect on Arizona’s Sports Betting Market
Recognizing the potential for further expansion and the benefits of increased competition, the ADG’s decision to open applications for additional licenses in 2024 is a forward-thinking move. The new licenses are expected to attract innovative operators who can offer fresh perspectives and enhanced services. This expansion is not just about increasing the number of operators but also about enriching the market with diverse and competitive offerings.
Potential applicants for these new licenses may include up-and-coming sportsbooks not yet in the Arizona market, such as ClutchBet and Tipico.
As the application window approaches, anticipation is high among potential operators. The opportunity to join Arizona’s thriving sports betting market is highly coveted, promising significant rewards for successful applicants. This expansion marks a new chapter in Arizona’s journey to becoming a premier destination for sports betting in the United States.
By the end of July 2024, with the inclusion of new operators, Arizona’s sports betting landscape is set to become even more vibrant and competitive. This move reaffirms the state’s commitment to maintaining a dynamic and consumer-friendly market, continuing the growth trajectory that began with the landmark legislation of April 2021.
