Arizona Posts Draft Sports Betting License, Application Fees 

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Arizona’s proposed sports betting application and license fees are now posted in draft rules expected to be finalized soon by the Arizona Department of Gaming (ADG).

Planned fees range from an initial license fee of $750,000 for one of 20 Arizona sports betting operator licenses allowed under state law to a $25,000 initial license to operate limited sports betting at horse racetracks in the state. Annual license fees would range from $150,000 for a sports betting operator or designee to $5,000 for a limited sports betting operator and management service provider. 

Sports betting operator and limited operator licenses could apply for license renewal every five years. Much lower fees — all non-refundable — are proposed for sports betting suppliers and employees, renewable every two years.

This is the second set of draft rules posted by the ADG. Two rounds of public input were received by the agency on a first set of draft rules last month under a 2021 state law signed in April and an amended tribal-state gaming compact approved in May.

Public comment on the draft rules will be received through the end of the day tomorrow, both in writing and through an online meeting held 9-11:30 a.m. PDT tomorrow (July 7) via Google Meet. 

Application And License Fees Under Arizona Draft Rules

The ADG states on its website that “every applicant for a license shall submit a complete application” and fees. Fees for licensure proposed in the draft rules are as follows: 

Event Wagering (sports betting) Operator or Designee

  • Application fee  $100,000
  • Initial License $750,000
  • Annual License Fee $150,000

Limited Event Wagering Operator (horse racetracks)

  • Application Fee $5,000
  • Initial License $25,000
  • Annual License Fee $5,000

Management Services Provider

  • Application Fee $1,000
  • Initial License $10,000
  • Annual License Fee $5,000

Supplier

  • Initial License $5,000
  • Renewal $1,000

Ancillary Supplier

  • Initial License $1,500
  • Renewal $500

Employee

  • Initial License $250
  • Renewal $125

How Arizona Sports Betting Licensing (and Skins) Will Work 

Twenty sports betting operator licenses can be issued by the ADG once rules are final. 

Ten of those licenses will go to professional sports teams or franchises, the host of the PGA Tour, or national stock car race promoter in Arizona to offer retail and mobile sports betting in Arizona. The other 10 are reserved for Arizona tribes that want to offer mobile sports betting off tribal lands, although tribes can offer retail sports betting on the reservation under an amended tribal-state gaming compact approved in May.

All sports betting licensed by Arizona will take place in-state.  

Then there are the mobile skins. Every sports betting operator will be allowed up to two platforms according to the draft rules, although ADG approval will be required to offer a second skin: “The Department shall exercise its discretion in its consideration of the written request for a second event wagering platform,” the draft rules state. 

One event wagering system will be allowed per operator “whether its own or as provided by a management services provider,” per the draft rules. The system is the equipment that will allow sports bets to be placed via a platform or in-person. 

What’s Next For Arizona Sports Betting?

With approval of the draft rules expected soon, the ADG is on track to meet its goal of a statewide launch by NFL Kickoff on Sept. 9. 

“ADG is on track to meet the targeted ‘go live’ date of Sept. 9 for event wagering in the state,” the agency says on its website. “A revised timeline will be posted once the Department has reviewed and incorporated the expanded input.” 

That said, the agency doesn’t intend to miss its self-imposed deadline. Those interested in applying for a sports betting license can ask about the application process by submitting an “inquiry letter.”

“(We are) working to streamline the application/licensure process” ahead of final approval of the rules, says the ADG.

About the Author

Rebecca Hanchett

Rebecca Hanchett is a political writer based in Kentucky's Bluegrass region who covers legislative developments at Gaming Today. She worked as a public affairs specialist for 23 years at the Kentucky State Capitol. A University of Kentucky grad, she has been known to watch UK basketball from time to time.

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