The Arizona Department of Gaming will begin accepting applications on August 13 for up to 10 limited event wagering operator licenses for retail sports betting in partnership with a racetrack or off-track facility.
The application window will remain open for two weeks. Applicants must pay a $1,000 submission fee. Successful operators will owe an initial $10,000 license fee and $5,000 annually thereafter. Retail revenue generated under the licenses will be taxed at 8%, compared with the 10% rate applied to online sports betting.
“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 regulator announced the process Tuesday and published rules and procedures for awarding the licenses. The move follows Gov. Katie Hobbs’ February proposal to raise the online sports wagering tax to 45% for operators reporting $75 million in monthly gross event wagering receipts. The increase was excluded from the final fiscal year 2027 budget.
Gov. Katie Hobbs
The licensing announcement also came less than a week after the ADG issued cease-and-desist orders to BetOpenly, Bookmaker, ClubWPT Online Poker, Kutt Inc. and Raffle Creator for accepting customers in Arizona.
The regulator cited violations including the illicit promotion of gambling, illegal control of an enterprise and money laundering. Operators that fail to comply could face criminal or civil action.
Since 2025, the ADG has issued cease-and-desist orders to more than 15 operators for violations including operating without a gaming license and offering sweepstakes casino gaming.