The AZ sports betting market could feature one of the more industry-friendly tax rates in the country.
A second draft of rules released Friday by the Arizona Department of Gaming proposes separate tax rates for retail and mobile Arizona sports betting revenue:
- 8% on retail wagers
- 10% on mobile wagers
The new draft also sets license application and renewal fees for Arizona sportsbooks:
- $100,000 application fee
- $750,000 license fee
- $150,000 annual renewal fee
What’s next in AZ sports betting
Arizona regulators said last month they intend to open the sports betting market by September 9. That would put the Grand Canyon State on track to welcome wagers before NFL betting begins.
The updated draft of rules comes after both a public comment period and multiple hearings. Sportsbooks wanting into the Arizona market offered some small proposed changes but few other concerns emerged.
This second pass at regulations will receive another public hearing Wednesday. With tax rates and license fees established, this meeting likely will draw more input from stakeholders.
State legislators delegated to regulators the tasks of setting tax rates and license fees in the new AZ sports betting law. Arizona approved legal sports betting in April 2021 after multiple stalled attempts in previous years.
Arizona sportsbooks lining up for launch
There should be no shortage of options for bettors in Arizona when the market opens. Just this morning, WynnBET announced an agreement with the San Carlos Apache Tribe for Arizona market entry. The San Carlos Apache are the first Arizona tribe to find a partner.
The latest in a flurry of partnership deals arrived this week when Bally’s linked with the WNBA’s Phoenix Mercury to gain access. It appears to be the first arrangement between a women’s professional team and a sportsbook.
The AZ sports betting law allows for 20 licenses, split evenly between professional organizations and tribal casinos. Other known ties include:
- Caesars Sportsbook and the Arizona Diamondbacks
- DraftKings and the PGA Tour’s Waste Management Open
- FanDuel and the Phoenix Suns
That still leaves the Arizona Cardinals, Arizona Coyotes, and Phoenix International Raceway as likely AZ sports betting partners.