The Arizona Department of Gaming (ADG) is set to add new opportunities to its sports betting landscape by opening applications for limited event wagering licenses. This announcement comes amid a busy week for the regulator, which aims to stimulate growth in the state's sports betting sector.
Starting August 13, the ADG will accept applications for these limited event wagering licenses, which are exclusively available to operators partnering with a racetrack or off-track facility.
Cliff Holden, the ADG’s Assistant Director of Certification and Licensing, emphasized the importance of consumer protection in the licensing process. He stated, "Applicants for limited event wagering operator licenses will undergo a thorough licensing evaluation process structured to ensure consumer protection. We look forward to receiving new applications for limited event wagering within the state of Arizona."
The ADG has established clear criteria for awarding these licenses: up to ten retail-style wagering licenses will be granted, with the application window remaining open for two weeks. Each application incurs a fee of $1,000, and operators granted a license will face an 8% tax rate on their retail revenue, which is lower than the 10% tax rate applicable to online sports betting operators. Additionally, there’s a one-time initial license fee of $10,000, followed by annual fees of $5,000.
The state aims to initiate new retail sports betting operations following Governor Katie Hobbs’ previous consideration of raising the online sports wagering tax to 45%. In her executive FY2027 budget proposal made in February, it was suggested that operators with $75 million in monthly gross event wagering receipts would have to meet this higher tax rate. However, the final budget version did not incorporate this increase.
This expansion of legalized sports betting comes shortly after the ADG issued cease-and-desist orders to five operators for their illicit activities within Arizona. Those operators include BetOpenly, Bookmaker, ClubWPT Online Poker, Kutt Inc., and Raffle Creator. The violations range from the illegal promotion of gambling to money laundering and illegal control of an enterprise. Should these operators fail to comply, the ADG may pursue criminal or civil legal actions. Since 2025, more than 15 operators have received similar orders from the ADG for operating without appropriate licensing and providing unauthorized sweepstakes casino gaming.
