At Least Two Arizona Wagering Licenses To Go Up For Grabs In February
· 2024-01-18

At Least Two Arizona Wagering Licenses To Go Up For Grabs In February

The Arizona Department of Gaming announced Tuesday it will open a window from Feb. 16-March 4 for at least two event wagering licenses. One tribal license and “no less than one” professional sports franchise license will be available. There are currently 16 digital platforms available in the state, eight partnered with tribes and eight partnered with professional sports franchises. The 2021 law allows for a maximum of 20 licenses, 10 each for tribes and pro franchises.

When Arizona sports betting first launched, all 10 tribal licenses and eight professional franchise licenses were claimed. Nine tribes currently have licenses, leaving one available. Eight of the platforms tethered to tribal casinos, including BetMGM, are live. Bet365 Arizona, which was licensed last year in partnership with the Ak-Chin Indian Community, has not yet launched.

Eight professional sports franchises were initially approved for licenses in 2021, and two remain. The ADOG opened an application window last summer, and ultimately awarded the Ak-Chin Indian Community its license, but there were no applicants for the then-available pro franchise license.

The only major operator that is not live in Arizona is Fanatics Sportsbook, which in August 2023 acquired PointsBet North America, gaining market access in 15 U.S. jurisdictions. Arizona was not one of those jurisdictions as PointsBet was originally awarded a license in the state in 2021 in partnership with Cliff Castle Casino, but the offer rescinded due to a “clerical error.”

A Fanatics spokesman told Sports Handle Wednesday that the company has no comment on future plans in Arizona.

FanDuel, which opened the second sportsbook in a professional sports venue anywhere in the U.S. at the Footprint Center in 2021, has been battling with DraftKings, which has its retail location at TPC Scottsdale, for the top spot in the state. In October’s revenue report — the latest available — DraftKings edged out FanDuel for market share, and the two account for vast majority of market share.

Arizona lawmakers wanted “parity” between the tribes and professional franchises, and allowed for 10 licenses each, but so far, there have not been 10 franchises that can meet the licensing qualifications. In 2023, it appeared that the United Soccer League’s Phoenix Rising — which had been denied a license in the first round — would apply, but it did not. Applicants are required to put up a non-refundable $100,000 application fee, and in the end, Phoenix Rising determined that was too high a price to pay without a guarantee that it would be awarded a license.

Whether or not there is another professional franchise that could qualify for a license is an open question. Franchises must offer their sport at the “highest level” in the state, and through each round there has been some question about whether or not a Major League Baseball team with a spring training facility in Arizona could qualify. None have applied.

Every major professional sports franchise in the state plus an Arena League Football Team, a NASCAR track, a PGA venue, and a WNBA team are already licensed.

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