The Arizona Department of Gaming is set to start accepting applications on August 13 for up to ten limited event wagering operator licenses. These licenses are intended for retail sports betting in collaboration with either a racetrack or an off-track facility.
The application period will last for two weeks, during which applicants are required to submit a fee of $1,000. Those who are granted a license will need to pay an initial fee of $10,000, followed by an annual fee of $5,000. Retail revenues generated under these licenses will be taxed at a rate of 8%, which is lower than the 10% tax imposed on online sports betting.
Cliff Holden, the Assistant Director of Certification and Licensing at the ADG, stated, “The licensing evaluation process for limited event wagering operators is designed to ensure consumer protection. We are eager to receive new applications for limited event wagering in Arizona.”
This announcement was made on Tuesday, along with the publication of the rules and procedures for the licensing process. This development follows Governor Katie Hobbs’ proposal in February to increase the online sports wagering tax to 45% for operators with monthly gross event wagering receipts exceeding $75 million, although this increase was ultimately not included in the final budget for fiscal year 2027.
Additionally, this licensing announcement comes shortly after the ADG issued cease-and-desist orders to several operators, including BetOpenly, Bookmaker, ClubWPT Online Poker, Kutt Inc., and Raffle Creator, for accepting customers within Arizona.
The regulator cited several violations such as illegal promotion of gambling, unlawful control of an enterprise, and money laundering. Operators who do not comply with these regulations may face criminal or civil penalties.
Since 2025, the ADG has issued cease-and-desist orders to over 15 operators for various violations, including operating without a gaming license and offering sweepstakes casino gaming.