Arizona sports betting is going to be a very lucrative sports betting market. The state aims to launch sports betting by September 9, when the Buccaneers host the Cowboys in the season opener.
AZ sports wagering has fallen behind the original schedule, but it still appears that a September launch is realistic. The second draft of rules for Arizona sports betting was released on Friday by the Department of Gaming.
The legislation would make Arizona one of the most tax-friendly states in the nation. With the tax rates in the bill, sports betting operators would pay massive amounts to enter the state because of the long-term profit possibilities.
Fees and Tax Rates
When the second draft of sports betting rules was released on Thursday, the legal wagering industry was stunned. The Department of Gaming wrote that retail wagers would be taxed at 8%, and mobile bets will be charged at 10%.
States legalize sports betting for the taxes, and some rates approach 20%. A 10% tax on mobile wagers in a state like Arizona is shocking. The Department of Gaming is relying on bulk to make money with these tax rates.
Operators will have to pay some license fees, but it’s worth it for the low rates. The application will cost $100,000, and once approved, platforms must pay $750,000. There will be an annual renewal fee of $150,000, so the state will make up for the low tax rates every year.
However, this is still an excellent market for operators because of the limited taxes.
Sportsbooks in the Arizona Market
The sports betting licenses will be reserved for the professional sports teams/venues and the San Carlos Apache Tribe. There have been five partnerships formed thus far, with more expected before the September launch.
1. Caesars Sportsbook and the Arizona Diamondbacks
2. DraftKings and the PGA Waste Management Open
3. FanDuel and the Phoenix Suns
4. Bally’s and the Phoenix Mercury
5. WynnBET and the San Carlos Apache Tribe
The Arizona Cardinals, Arizona Coyotes, and Phoenix International Raceway are still eligible to form deals with operators. The Cardinals will have a deal done by football season to take advantage of fan popularity for the franchise in the state.
Many other significant providers are expected to seek licensure to take advantage of the lucrative market.
Next Steps for Arizona Sports Betting
There is still a chance that sports betting is not live by September 9. However, it’s unlikely because the Department of Gaming is determined to finalize the market to take advantage of football season.
Football is the most wagered sport in the United States, and there is a ton of excitement during week one. The second draft of regulations will be debated at a public hearing on Wednesday. Stakeholders are expected to be active with the tax rates and license fees in place.
Nevertheless, there will not be any issues with low tax rates from operators. There may be complaints with all the fees, but it’s a trade-off for the low taxes. The legislature approved sports betting in April of 2021.