Sports betting in Arizona could soon expand its market after state gaming regulators opened applications for up to 10 limited event wagering licenses. The Arizona Department of Gaming began accepting applications Thursday, August 13, for licenses that allow sportsbook operators to partner with racetracks and qualifying off-track betting facilities.
The application window will remain open through August 27 at 5 p.m. Arizona time. Unlike Arizona’s standard event wagering licenses, which can include statewide mobile sports betting, the limited licenses are designed primarily to expand in-person wagering at racing-related locations.
Arizona Can Award Up To 10 Limited Sports Betting Licenses
Arizona law allows the Department of Gaming to issue up to 10 limited event wagering licenses at 10 eligible locations. Under the system, a licensed sportsbook operator can partner with a racetrack or another wagering facility that holds a permit from the Arizona Division of Racing. Those additional facilities are commonly known as off-track betting locations.
The Department of Gaming says applicants will undergo a licensing review intended to ensure they meet the state’s regulatory and consumer-protection requirements.
Arizona Assistant Director of Certification and Licensing Cliff Holden said the agency is looking forward to receiving applications during the new licensing period.
The limited licenses could give sportsbook operators another way to establish a physical presence in a state where mobile betting currently accounts for much of the market.
Retail Sports Betting Revenue Taxed At 8%
Operators receiving one of the limited licenses will pay an 8% privilege fee on adjusted retail event wagering revenue. That is lower than the rate applied to mobile sports betting, which is taxed at 10%.
The distinction reinforces the narrower scope of the new licenses. Rather than introducing another statewide betting app, a limited license allows wagering through an approved physical racing or off-track betting location.
Arizona regulators have not yet announced which sportsbook operators or racing facilities will apply during the August licensing period. Applications must be completed before the August 27 deadline to be considered.
Arizona Sports Betting Has Generated More Than $190 Million For State
The latest licensing opportunity comes as Arizona’s regulated sports betting market continues to grow. Sports betting became legal in Arizona in 2021 after lawmakers approved HB 2772.
Under the original system, the state can allocate a maximum of 20 standard event wagering operator licenses. Ten are reserved for Arizona tribes, and another 10 are reserved for qualifying professional sports organizations.
Earlier this month, the Department of Gaming announced it had awarded another of those licenses to Circa Sports Arizona LLC, the designee of the San Juan Southern Paiute Tribe. The license became effective July 27, although the Department said it would continue working with Circa on the steps necessary to begin operations.
At the time of the August 3 announcement, Arizona regulators said bettors had wagered approximately $35.3 billion since legal sports betting launched in 2021. That activity has generated approximately $190.6 million in sports betting revenue for the state.
More Arizona Sportsbook Locations Could Be Coming
The limited-license application period could now expand the retail side of Arizona’s sports betting industry without changing the state’s allocation of standard mobile sportsbook licenses.
If all 10 available licenses are eventually awarded, additional racetracks and off-track wagering locations could add retail sportsbooks through partnerships with approved operators.
There is no guarantee that all 10 licenses will be issued during the current application period. The Department of Gaming will evaluate applications in accordance with the requirements established by Arizona law and its event wagering regulations.
For Arizona bettors, the immediate change is relatively limited. No new sportsbook has launched as a result of the application window, and the process does not automatically create additional statewide mobile betting apps.
Instead, August 13 marks the beginning of the regulatory process that could ultimately lead to more legal in-person sports betting locations across the state. Applications close August 27, making the next development worth watching: which operators and Arizona racing facilities pursue the limited licenses.
