The state of Arizona will allow three sports wagering operators to gain access to the state’s gambling market. As reported by Covers, the Arizona Department of Gaming will start accepting new applications for sports betting licenses in August that will grant the opportunity to three operators to take advantage of the Arizona wagering market.
Covers reports that the Arizona Department of Gaming will hold an informational webinar on July 17, 2023 to clarify the application procedure and prepare operators for proper submission of applications that will commence in August. It is also reported that applications will then be assessed for compliance with the state legislation governing the subject gambling field.
As of August 15, 2023, the state regulator for tribal gaming, racing, and sports betting will reportedly be accepting applications for one sports wagering license reserved for Arizona Tribes, as well as two applications for professional sports betting operators. The source reports that the operators will be required to pay the license fee amounting to $750,000 with $100,000 due already with the application. Covers reports that the prospective applicants are still not known but assumes that bet365, Betr, and Tipico may lead the race.
In any case, three new license holders will be added to the 17 online sports betting companies already operating in the state. With $535.7 million handle reported in April 2023, Arizona seems to be a promising market as the state operators benefited from the handle to increase revenues by almost 9%. Almost the same increase was seen in March 2023; These flat figures experienced over the last 12 month testify to the market stability and justify the reason why sports wagering in Arizona reportedly features strong competition.
Market Revenue Levels:
Indeed, the Arizona Department of Gaming reported that the wagering operators in the state generated $34.3 million in gross gaming revenues in April 2023. The figure reportedly represents a benchmark for the license applicants to evaluate the speed of the revenue aggregation as the license fee stands at $750,000, as reported.
Also, applicants may be incited to join the race for the license as the April 2023 handle testifies that almost 99% of all bets in the state were placed through online wagering operators. Using the April figures, one can see that 17 online sports betting operators recorded almost a $500 million handle and generated the revenue of around $ 34 million.
Average Revenue Benchmark:
The revenue distribution is not likely to be even among the operators, but a simple calculation implies that each operator generated the average of around $2 million in revenues in April. It means that the new licensees would theoretically have their license costs paid off in less than half a month of operation. Such an assumption may be a driving force for operators to apply for the license and gain access to the lucrative sports betting market of the state of Arizona.