For the first time since 2024, Arizona will be opening things up to new sportsbooks. The Arizona Department of Gaming has announced a new event wagering license application window from June 26 through July 10, which opens the door for up to six new operators to enter one of the more populated and growing states in the nation.
"As the state regulator, we remain dedicated to consumer protection and a thorough licensing review process," Cliff Holden, the Department's Assistant Director of Certification and Licensing, said in a news release. "We look forward to receiving new applications for regulated event wagering."
Arizona officially authorized 20 licenses in total back in 2021, with 10 reserved for tribes and 10 for sports franchises. However, amid industry consolidation and sportsbooks either folding or leaving the state, six slots are open as just 14 of those 20 licenses are in use. For instance, SaharaBets ceased operating in Arizona when the NHL's Arizona Coyotes relocated, leaving the state to become the Utah Mammoth ahead of the 2024-25 season. Of the six available slots, at least one will go to a tribal partner and one to a sports franchise, according to the ADG.
Top sportsbooks like DraftKings, FanDuel, BetMGM, Caesars, bet365 and Fanatics all operate in The Grand Canyon State, so it could be difficult to find new entrants into the state. That's especially true since DraftKings, FanDuel, BetMGM and Caesars alone control roughly 90% of the sports betting market in Arizona.
Additionally, prediction markets continue to grow in popularity, further complicating matters for new entrants. Arizona has filed paperwork and charges against various prediction markets platforms over the last year. These prediction markets allow for trades on sporting events and games, but they do not pay state taxes like licensed sportsbook operators do, resulting in millions, if not billions, of tax losses annually for states and tribes.
The state of Arizona was 14th in population, per 2020 census data, and it's been one of the fastest-growing states in the nation in recent years as well. Sports bettors have wagered a lot in the state since sports betting launched in 2021, with $33.9 billion wagered over that time. That has resulted in nearly $180 million in tax revenue for the state.
