The Arizona Department of Gaming’s (ADG) busy week continues as the regulator plans to expand the state’s sports betting market by accepting new retail wagering applications.
On Tuesday, the ADG announced that it will be accepting new applications for limited event wagering licenses. The limited event wagering licenses are only available to operators that plan to offer retail sports wagering in partnership with a racetrack or off-track facility.
“Applicants for limited event wagering operator licenses will undergo a thorough licensing evaluation process structured to ensure consumer protection,” said ADG Assistant Director of Certification and Licensing Cliff Holden. “We look forward to receiving new applications for limited event wagering within the state of Arizona.”
The ADG detailed its rules and procedures for awarding limited event wagering licenses.
- The gaming regulator can award up to 10 retail-style wagering licenses
- The application window for licenses opens on Aug. 13 and closes two weeks later
- It costs $1,000 to submit an application
- Retail revenue under a limited event wagering license is taxed at an 8% rate
- By comparison, online sports betting operators are subject to a 10% tax rate
If awarded a limited event wagering license, operators are also required to pay an initial $10,000 license fee. After the initial fee, annual fees for a license are set at $5,000.
The ADG is planning to welcome new retail sports betting operations across the state after Gov. Katie Hobbs considered increasing the tax rate for online sports wagering to 45%.
In an executive FY2027 budget proposed by Hobbs in February, operators that reported $75 million in monthly gross event wagering receipts were required to pay the 45% tax rate. The final iteration of Hobbs’ budget did not include the proposed tax rate increase.
Arizona gaming regulator issues C&D orders
Arizona is expanding its retail sports betting market less than a week after the ADG sent a round of cease-and-desist orders to five operators accepting customers in the state.
The group of operators that received C&D orders from the ADG are:
- BetOpenly
- Bookmaker
- ClubWPT Online Poker
- Kutt Inc.
- Raffle Creator
The operators are being ordered to exit Arizona for violations that include the illicit promotion of gambling, illegal control of an enterprise, and money laundering. If the operators fail to comply with C&Ds, the ADG may consider filing criminal or civil actions.
Since 2025, the ADG has sent C&D orders to more than 15 operators. The violations include operating without a gaming license and providing sweepstakes casino gaming.
