As part of the process, the department will grant two licenses for mobile betting partnerships with professional sports teams, while one license will be designated for tribal licensing.
Prospective applicants can find guidelines and application forms on the state website starting July 14. To provide further information and guidance to applicants, ADG will host a webinar on July 17.
The ADG will evaluate all applicants, conducting background checks and interviews before granting licenses. Each applicant is required to pay a non-refundable application fee of $100,000.
Those selected must pay a license fee of $750,000 and an annual fee of $150,000.
The law allows for a maximum of 20 event wagering licenses to be issued, with ten licenses allocated to sports franchises and ten to tribal nations.
Eight of the ten sports franchise licenses have been filled, while nine of the ten tribal licenses have already been taken. However, due to the closure of Fubo last year, one license spot has become available.
Sports betting partnerships in Arizona
Since the launch of online sports betting in Arizona in September 2021, tax revenue generated from sports betting has contributed to the state’s general fund. The fund has supported various programs and services throughout Arizona.
According to Arizona gaming law, sports betting operators must form partnerships with a professional sports team, an organization within the state, or a federally-recognized tribe.
Each license comes with its own set of specific requirements.
Finding partners, however, may prove challenging on the sports side.
Most sports teams and organizations like the Arizona Cardinals, Arizona Coyotes, Phoenix Suns, Arizona Diamondbacks, and WNBA’s Phoenix Mercury already have established partnerships.
The only team without an authorized betting partner under the current wagering license structure is Phoenix Rising FC of the United Soccer League.
Teams like the Cardinals or Suns could establish additional agreements with sports betting apps in AZ to secure licensure in the state. The outcome of such agreements may depend on the exclusivity clauses within existing partnerships.
If the Coyotes relocate from Arizona, it could also open up another license for a new operator.
One notable applicant in consideration is Fanatics, a newcomer in the U.S. sports betting market.
Fanatics boasts a staggering $25 billion in cash reserves and a significant customer base from its retail sports apparel business.
The company has expressed its intent to disrupt the industry. Earlier this year, Fanatics successfully submitted a bid to acquire PointsBet US, thereby gaining market share to support its expansion plans.
However, it remains unclear whether Fanatics will suspend PointsBet and rebrand it.
As PointsBet currently holds a significant presence in Arizona, Fanatics may leverage this market as a launching pad for its new betting app.
Another potential candidate is Bet365, a European-based betting company that currently operates its sportsbook in a few states.
Despite having relatively stable revenue, Bet365 has yet to establish a presence in Arizona. It makes Bet365 a viable contender for a license.
SI sportsbook may also be among the new operators. The SI Sportsbook app is currently available in Colorado, Michigan, and Virginia.
Even though it is not a revenue leader, SI Sportsbook has proven to be a reliable performer and operates on the system provided by 888 Atlantic Limited.