Most Read News
Arizona Opens New License Applications in August 2023
The State of Arizona Welcomes Three New Sports Wagering Operators
The state of Arizona has announced that it will be granting access to its gambling market to three sports wagering operators. According to a report by Covers, the Arizona Department of Gaming will begin accepting new applications for sports betting licenses in August, providing an opportunity for three operators to capitalize on the Arizona wagering market.
Application Procedure and License Fee
Covers further reports that the Arizona Department of Gaming will conduct an informational webinar on July 17, 2023, to outline the application procedure and ensure operators are well-prepared for submission. Applications will be assessed for compliance with the state’s gambling regulations governing the industry.
Starting from August 15, 2023, the regulatory body responsible for tribal gaming, racing, and sports betting will accept applications for one sports wagering license reserved for Arizona Tribes, as well as two applications for professional sports betting operators. Applicants will be required to pay a license fee of $750,000, with an initial payment of $100,000 due upon submission. While the prospective applicants have not been officially announced, it is speculated that Bet365, Betr, and Tipico may be among the leading contenders.
A Promising Market with Stable Growth
Adding to the existing 17 online sports betting companies in the state, the introduction of three new license holders demonstrates the promising nature of the Arizona market. The reported handle of $535.7 million in April 2023 indicates a market that has shown consistent growth, with operators experiencing a revenue increase of nearly 9%. Similar growth was observed in March 2023, further establishing the stability and competitiveness of the sports wagering landscape in Arizona.
Furthermore, the Arizona Department of Gaming revealed that wagering operators generated $34.3 million in gross gaming revenues in April 2023. This figure serves as a benchmark for prospective license applicants to evaluate the revenue potential, considering the license fee of $750,000.
Market Evaluation and Revenue Potential
Another incentive for operators to apply for licenses is the fact that nearly 99% of all bets placed in the state were through online wagering operators in April 2023. Based on this data, the 17 existing online sports betting operators accumulated a handle of nearly $500 million and generated approximately $34 million in revenue.
Although revenue distribution may not be equal among operators, a simple calculation suggests that each operator generated an average revenue of around $2 million in April. This indicates that the new licensees could potentially recoup their licensing costs in less than half a month of operation. Such a lucrative opportunity is expected to drive operators to apply for licenses and gain access to the thriving sports betting market in Arizona.