Arizona Government Entity to Invite Applications for Sports Wagering Permits
In the vibrant landscape of Arizona's sports betting industry, 13 licensed sportsbooks are currently active, offering a mix of online and retail betting options to cater to the state's avid sports fans [1][2][3]. Established names like BetMGM, Fanatics Sportsbook, Caesars Sportsbook, DraftKings, FanDuel, bet365, and Hard Rock Bet are among the popular operators [1][3].
These sportsbooks entice users with various promotions and bonuses, such as BetMGM's $1,500 first bet offer and Fanatics' choice between a $250 or $1,000 signup bonus [1][3]. The competitive market is further shaped by a moderate tax rate, making Arizona an attractive "test market" for sportsbooks [5].
Up to 20 sports betting licenses are allowed in Arizona, leaving room for up to seven new entrants to apply and join the market [5]. One potential newcomer is Prime Sportsbook, which has been operating in Ohio and New Jersey and may consider applying for a license in Arizona [4]. Joe Brennan Jr., Executive Chairman of Prime Sportsbook, finds Arizona an appealing market due to its proximity to Las Vegas, Southern California, Colorado, and New Mexico, as well as its own growth potential [4].
The competitive nature of the market is evident, with some sportsbooks having tried and failed to establish themselves, signaling the need for strong market strategies [5]. There are ongoing discussions about expanding sportsbook presence to venues like the Phoenix Raceway, similar to existing sportsbooks at major league sports stadiums in Arizona [5]. Although plans for a Phoenix Raceway sportsbook are currently paused, this indicates ongoing interest in new potential retail sportsbook locations and operator involvement in the state [5].
March saw Arizona's sports betting handle reach nearly $760 million, just $25.5 million shy of neighbouring Nevada, demonstrating Arizona's vast wagering reach [6]. This figure marks a new record monthly handle for the state, making it the ninth state to surpass $16 billion all-time in sports betting handle [6].
Recent additions to the Arizona market include Fanatics Sportsbook, which entered in April, and bet365, which debuted in February [6]. Both Fanatics and bet365 have reached access agreements with the Tonto Apache Tribe and the AK-Chin Indian Community, respectively, for their operations in Arizona [6].
Prime Sportsbook sees competition coming from offshore and black markets, but believes it can convert these players due to its higher betting limits and no reduction in player limits upon winning [4]. Arizona's 10% tax rate on mobile sports betting revenue is considered favourable by Prime Sportsbook for the type of operation they run [4].
Notably, Arizona generates 99% of its total sports betting handle via mobile wagering [6]. The Arizona Department of Gaming will accept applications for sports betting licenses from July 8-19 [4]. The Department will also reserve at least one event wagering license each for Arizona Tribes and Arizona Sports Franchises [6].
This dynamic market presents an environment where new operators still have opportunities to apply for licenses and compete in Arizona’s evolving sports betting market.
- Prime Sportsbook, considering Arizona's appeal due to its proximity to several nearby states and its own growth potential, may look to enter the sports betting market by applying for a license during the application period set by the Arizona Department of Gaming.
- To attract users, sportsbooks in Arizona offer various promotions and bonuses, such as BetMGM's $1,500 first bet offer and Fanatics' choice between a $250 or $1,000 signup bonus, reflecting the competitive nature of the sports-betting industry in the state.
- As the sports betting market in Arizona continues to grow, generating 99% of its total handle via mobile wagering, operators like Prime Sportsbook view the state's 10% tax rate on mobile sports betting revenue as advantageous for their specific business model.
