Arizona Re-Opens Application Process for Sports Betting Operators

It appears the Arizona sports betting market is about to get bigger.

The Arizona Department of Gaming (ADG) will open the licensing process for sportsbooks to fill at least two of the state’s three available spots. The state currently has 17 sportsbooks available, but its law allows for up to 20. The ADG has said there will be at least one license for a tribal gaming group and another for a pro sports franchise. 

Application Window Won’t Open Until Summer

While the announcement was made this week, the period for operators to submit applications won’t be until July 8-19. That will give tribes and pro sports franchises time to find operating partners.

“Applicants must submit their completed applications within this timeframe in order to be considered for a license. ADG will thoroughly evaluate all applications received based on the established criteria pursuant to the State’s event wagering rules and statutes.” a statement from the AGD read.

While this may seem like a long window, negotiations will be difficult. With the major tribes and teams already finding partners, there are few left. It will take time for the two sides to reach a deal, if they do at all.

Licenses Could Go Unfilled

While the Copper State is hoping to expand its market, that doesn’t guarantee it will do so. 

With 17 operators already in the state, there aren’t many sportsbooks that will be interested. Arizona has a solid sports betting market, but over 70% of the market share belongs to DraftKings and FanDuel. That leaves the other 15 operators to compete for the other 30%.

The state welcomed bet365 Sportsbook in August, meaning all major operators now live in the state. This will lead smaller and niche platforms to look at entering the market, but the investment may not be worth the return.

Arizona Sees Historic September

Arizona’s decision to expand its sports betting market comes after a historic September. The state’s $732.1 million in gross revenue was the highest of the year, thanks to the return of the NFL. That number represents an increase of almost 20% compared to September 2023, showing real growth.

The state saw its highest revenue in March of this year, with March Madness driving $759.8 million in revenue.