This move opens opportunities for three more sports betting operators to enter the market and gain access in Arizona.
As the regulatory agency responsible for tribal gaming, racing, and event wagering in the state, the ADG will be granting one event wagering license exclusively to Arizona Tribes and two licenses for professional sports teams.
To obtain the license and launch online sportsbooks in Arizona, operators must complete application forms that will be available on July 14. ADG will also hold an information webinar on July 17 to address applicants’ questions or concerns.
Operators will have the opportunity to submit their applications starting August 1 to August 15. They must submit their applications within this timeframe to be eligible.
After that, the ADG will review the applications from August 25 to September 1. During the evaluation process, applications will be assessed based on the operator’s ability to comply with Arizona’s event wagering legislation.
License Fees and Regulatory Compliance
Applying for an Arizona sports wagering license comes with a fee of $100,000. If approved, the fee increases to $750,000. Operators must demonstrate their commitment to adhering to the state’s regulations to be eligible for a license.
Despite the high cost, the sports wagering market in Arizona continues to attract prospective applicants. Recent data reveal that Arizona became the fastest US state to handle over $10 billion within just 20 months.
Recent data confirm that Arizona became the fifth state to reach this milestone. Arizona accomplished this feat faster than Illinois, even though the latter has a population that surpasses Arizona’s by over five million.
Promising Opportunities for Operators
Following the introduction of sportsbooks in Arizona on September 9, 2021, the state has become a significant player in the market. The total amount wagered in Arizona has exceeded $10 billion. It marked the 10th market to achieve this milestone.
In April, the state reported a handle of $535.7 million, showing a slight decline of 16.8 percent compared to the previous month. However, operators managed to improve their hold in April to 8.9 percent compared to 8.3 percent in March.
“March of 2023 is the fifth time the state eclipsed $600 million in wagers and is the second highest month since the inception of sports betting in Arizona,” ADG director Jackie Johnson said in a press release in June.
“I look forward to seeing how sports betting progresses in the state as we close out Fiscal Year 2023 in the coming months.”
After promotional deductions, the adjusted gross revenue of Arizona’s operators in April amounted to $34.3 million, slightly down from the $37.1 million recorded in March. Nevertheless, these results represent a substantial increase from the $15.8 million revenue reported in February.
The revenue from sportsbooks has also shown consistent growth in gross gambling revenue (GGR). In April, it showed a year-over-year increase of 68.1 percent to $49.2 million.
Prospective operators in Arizona will be aiming to generate profits quickly, given the costs associated with gaining market access. Although the group of license holders was set at 20, the initial group was 18 and reduced to 17 due to the recent departure of Fubo.
The approved online sports betting sites in Arizona include DraftKings, FanDuel, BetMGM, BetRivers, Caesars, and Unibet.
Leading operators such as FanDuel, DraftKings, and BetMGM have already experienced significant success in Arizona. In April alone, FanDuel recorded $212.9 million in bets. Meanwhile, DraftKings saw $148.7 million, and BetMGM reached $72.4 million in activity.
While it remains uncertain which operators will submit applications for market access in Arizona, potential suitors such as bet365, Betr, and Tipico could enter the scene.
