Arizona About to Expand Legal Sports Betting Family

The Arizona sports betting industry is ready to welcome one, possibly two, or even three new operators. The top sports betting apps that are not currently in the state will likely be eager to join the market.

According to the Arizona Department of Gaming’s announcement on Friday, regulators in the Grand Canyon State have vowed to increase the number of Arizona sports betting apps and retail providers in 2024. Currently, there are 17 platforms in the state, just three shy of the maximum allowed under Arizona state law.

Between July 8 and July 19, potential new operators are able to submit applications for an Arizona sports betting license.

As stated in the press release on Friday, Arizona is seeking a partner for one of the state’s tribes to operate a casino, with one or possibly two opportunities being set aside for a professional sports franchise in Arizona.

Reasons for the call for more providers

Since the legalization of sports betting in Arizona in 2021, there have been some changes in the sports betting industry. Four licensed operators have exited the market, opening up opportunities for new players to enter.

Fubo, WynnBET, Unibet, and TwinSpires have all left the Arizona market in the past two and a half years, stating reasons such as low market share or a decision to withdraw from the American legal sports betting industry altogether.

Throughout the year, the Arizona Department of Gaming has followed through on its commitment to bring new operators into the state. In February, bet365 was granted a license to operate in Arizona through a partnership with the Ak-Chin Indian Community. Additionally, Fanatics Underscoreg entered the state in partnership with the Tonto Apache Tribe, owners of the Mazatzal Hotel & Casino.

The maximum number of Tribal/sportsbook partnerships allowed under the law has been reached with the addition of the Fanatics partnership, bringing the total to 10. Regulators are now considering adding one more partnership, which would give the state a total of 11 sports betting tie-ups. With more operators, residents can expect to see an increase in Arizona sportsbook promotions.

This leaves two available licenses without restrictions, and the Department appears ready to fill those vacancies in the upcoming weeks and months.

The Arizona market

The Arizona legal sports betting market is highly appealing, consistently ranking in the top 10 sports betting jurisdictions in America. In March, the market set a new record with a monthly handle of $760 million, marking the third consecutive month that Arizona’s leading sportsbooks surpassed $700 million in wagers.

Arizona is one of nine states in the US to exceed $16 billion in total sports betting handle and one of 11 states to surpass $1 billion in sportsbook revenue since legalization.

Another appealing feature of the Arizona market for potential providers is the low 10% tax rate applied to mobile sports betting revenues.

Any new sportsbook entering the Arizona market will face tough competition for market share. DraftKings and FanDuel currently hold a combined market share of over 70% in the state, with all the major players already established in the market.

New provider bet365 has quickly become one of the top Arizona sports betting apps, ranking fifth in March with a $26.9 million handle. Explore their offerings with our exclusive bet365 bonus code: SBRBONUS!