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Arizona Reopens Sports Betting Market for New Contenders

Arizona Permits Fresh Entrants in the Sports Betting Industry.

SymClub
Jun 10, 2024
2 min read
Newscasino
Arizona Cardinals fans celebrate during a game. The state could add another two or three sports...
Arizona Cardinals fans celebrate during a game. The state could add another two or three sports betting operators.

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Arizona Reopens Sports Betting Market for New Contenders

Arizona is getting ready to expand its sports betting industry again, with the Arizona Department of Gaming (ADG) planning to add at least two new operators to the mix. Under the state's laws, there can be up to 20 sportsbooks in operation, and the number currently stands at 17. ADG is looking for one operator who's connected to a tribal gaming group and another one connected to a professional sports franchise. The application window is from July 8 to July 19, and candidates must submit their completed applications within these dates to be considered for a license.

The ADG will analyze all the received applications in accordance with the established criteria established in the state's event wagering rules and statutes, as mentioned in an official statement from ADG. Arizona has set aside 10 sports wagering permits for professional sports teams and 10 for Native American tribes. At present, there are 8 permits linked to professional sports teams and 9 to tribal gaming groups, leaving 3 permits unassigned.

Following the launch of online sports betting in Arizona in 2021, the state has now seen revenue surpassing $1 billion and a handle of over $15 billion. However, the market has seen some changes in operator structures, with firms like Bet365 joining the scene last August and ESPN Bet joining as a rebranded Barstool Sports. Fanatics is also a relatively recent addition.

DraftKings and FanDuel are the dominant players in the market, accounting for around 70% of the Arizona sports betting pie. Some of the other operators currently working in Arizona include Bally Bet, BetMGM, Caesars Sportsbook, Rush Street Interactive (Bet Rivers), and SuperBook Sports.

It's unclear at the moment which companies could possibly enter the Arizona market without any current presence, but it's safe to say that the market is an attractive option. The 10% tax on sports wagering is one appealing factor, but there are other considerations too. Additionally, Arizona is the 14th most populous state in the U.S. and has one of the highest rates of population growth. Its comprehensive list of online operators also draws bettors from neighboring Nevada. There's also talk of bettors from California, which disallows sports betting, crossing state lines to place their bets.

Las Vegas-based Circa Sports is considered a possible candidate for an Arizona license due to their preference for low-tax jurisdictions and strong brand recognition in the state. However, Circa Sports hasn't yet publicly declared any interest in acquiring an Arizona permit.

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