Arizona Department of Gaming to open sports betting license applications in July

The Arizona Department of Gaming (ADG) has announced that it will begin accepting applications for sports betting licenses from July 8-19.

The ADG will accept applications for at least “one event wagering license reserved for Arizona Tribes” and no less than one for Arizona Sports Franchises. Prospective applicants are encouraged to review the materials on the ADG website to understand the application process and requirements.

The application window will open on July 8, 2024, and close on July 19, 2024, at 5 PM. Completed applications must be submitted within this timeframe to be considered, the ADG said in a statement. The gaming body will evaluate all applications based on the established criteria, pursuant to the state’s event wagering rules and statutes.

Currently, there are 17 active licenses in Arizona, with eight tethered to Arizona Sports Franchises and nine to Arizona Tribes. The new window for applications has the potential of moving closer to the state's maximum allotted 20.

Arizona’s sports betting industry set a new record in March with more than $759 million wagered at sportsbooks and on mobile apps within the state. According to a report from the ADG, this marks the highest monthly handle in the state’s legalized sports betting history.

The amount wagered in March represents a 17.8% increase compared to the same month in 2023. The NCAA men’s and women’s basketball tournaments, particularly the Men’s Tournament known as March Madness, were significant revenue drivers for the month. The state generates 99% of its handle via mobile wagering, exceeding $700 million in handle in three of the last five months.

In addition to drawing significant wagering activity, the market has also seen the addition of new brands. Fanatics Sportsbook and bet365 entered the market this year, partnering with the Tonto Apache Tribe and the AK-Chin Indian Community, respectively.

Arizona remains attractive to operators due to its proximity to the non-legal California market and neighboring legal markets in Nevada and Colorado. New operators must pay a $750,000 initial license fee, following a $100,000 application fee, and will face intense competition.

In March, FanDuel and DraftKings held nearly 70% of the $752.4 million mobile handle. Other significant operators included BetMGM, Caesars, bet365, and ESPN BET, together controlling nearly 96% of the market.