Arizona Expanding Sports Betting Market With New Licenses

• The Arizona Department of Gaming today announced it will begin accepting applications for limited event wagering licenses
• Department can issue up to 10 limited sports betting licenses
• The limited event wagering licenses will be available at racetracks or off-track betting facilities that hold a permit from the Division of Racing

Arizona has its eyes on new sports betting licenses for the Grand Canyon State.

The Arizona Department of Gaming today announced it will be accepting applications for limited event wagering licenses. The Arizona of Department of Gaming can statutorily award up to 10 limited event wagering licenses, which are only available for certain racetracks or off-track betting locations in the state.

These locations can partner with a sports betting operator to offer in-person sports betting only.

Applications Due Next Month

The Arizona Department of Gaming will begin accepting applications for the limited event wagering licenses on Thursday, Aug. 13, and will accept applications through Thursday, Aug. 27, at 5 p.m.

“Applicants for limited event wagering operator licenses will undergo a thorough licensing evaluation process structured to ensure consumer protection,” Cliff Holden, assistant director of certification and licensing for the Department, said in a release. “We look forward to receiving new applications for limited event wagering within the state of Arizona.”

Limited event wagering licenses can be held by a racetrack or a wagering facility, commonly known as an off-track betting site, that holds a permit issued by the Arizona Division of Racing. The Arizona Department of Gaming will be able to issues up to 10 licenses at 10 specific locations.

License holders will be subjected to an 8% tax on adjusted retail sports betting revenues. Online sports betting revenues are subjected to a 10% tax rate, which Arizona Gov. Katie Hobbs (D) suggested raising to 45% earlier this year in her budget proposal for operators who bring in $75 million or more in monthly handle, a 350% increase from the state’s current rate.

Hobbs ultimately did not include the proposed increase in the state’s $18.3 billion budget.

Arizona has brought in $185.8 million in sports betting tax revenues since launching in 2021.

Cease-and-Desist Notices Issued

The Arizona Department of Gaming recently issued five cease-and-desist notices to five gaming entities operating illegally in the state. The department announced notices for BetOpenly, Bookmaker, Club WPT Online Poker, Kutt Inc., and Raffle Creator.

Operators received notices due to the illegal promotion of gambling, illegal control of an enterprise, and money laundering.

“Arizona is taking decisive action against illegal gambling operators that put Arizonans at risk,” Jackie Johnson, Arizona Department of Gaming director, said in a release. “Our top priority is protecting Arizonans and I’m grateful for the efforts of our intelligence unit led by Chief Law Enforcement Officer Doug Jensen to do just that. Through these cease-and-desist orders we are putting operators on notice: their conduct runs contrary to Arizona law and they must stop promoting illegal gambling.”