Arizona
PlayAZ.com: Arizona sportsbooks to eventually attract more than $3 billion in bets annually
Arizona will grow into a particularly lucrative market for its fledgling sports betting industry, capable of generating more than $3 billion in annual wagers and $200 million in annual gross gaming revenue, according to estimates by PlayAZ.com, which analyzes and researches the state’s regulated online gaming and sports betting market.
“Arizona is particularly exciting development for legal sports betting in the U.S., with a collection of attributes that will likely help the market mature quickly,” said Eric Ramsey, analyst for the PlayUSA.com network, which includes PlayAZ.com. “In fact, few other of the recently launched U.S. markets have quite as many positive characteristics. Because of this, the future is quite bright in Arizona.”
When Gov. Doug Ducey signed legislation to legalize sports betting in Arizona last week, the Grand Canyon State joined 26 other U.S. states and Washington D.C., that have regulated online sports betting in some form. Twenty-two of those jurisdictions have launched.
According to PlayAZ projections on an Arizona population of 7.3 million, Arizona sportsbooks could take in as much $3.3 billion in wagers annually at maturity, which could come as soon as the market’s third year. That would produce as much as $225 million in gross gaming revenue annually, assuming a 7% “hold,” which is the percentage sportsbooks keep after paying out winning bets.
With a hypothetical 8% tax rate, the state projects $12.3 million in annual tax revenue. But the final tax rate is yet to be determined, and with promotional credits that will reduce the tax liability for operators, an accurate projection is impossible.
Indiana, which launched sports betting in 2019, may be Arizona’s closest comparison among current markets. With some 500,000 fewer residents than Arizona, the Hoosier State produced $1.8 billion in bets and $138.4 million in gross operator revenue in 2020, despite major U.S. sports being shut down for more than three months in 2020. Through the first three months of 2021, Indiana sportsbooks have taken in $938.9 million in bets, including $316.7 million in March alone. The first quarter has produced $72.8 million in gross gaming revenues for Indiana sportsbooks, generating $6.9 million in state taxes.
“There is no question that Arizona will be a fruitful market, but there are still a lot of moving parts that will need to be sorted before launch,” said Dustin Gouker, lead analyst at PlayUSA.com. “Based on what is known now, though, the basic framework will be appealing for sportsbook operators.”
Arizona has a unique collection of positive attributes that should help make it flourish. For one, Arizona has a vibrant sporting landscape that includes a professional team in all four major North American sports leagues, four NCAA Division I college athletic programs, NASCAR races, and multiple PGA Tour events. To capitalize on that landscape, Arizona’s bill has authorized stadiums and arenas over 10,000 seats, plus the Phoenix Raceway and TPC Scottsdale as licensees.
Also, Arizona is an appealing sports tourism market with fans regularly traveling from all over for special events such as college bowl games, the Super Bowl, and the NCAA Tournament, in addition to regular season games and baseball’s spring training. Plus, Arizona has the potential to appeal to some residents of Southern California, who currently count Nevada as their nearest legal sports betting option.
“One of the smartest things that Arizona did was to create a relatively open market, like Indiana, which will spur competition and raise the market’s ceiling,” Ramsey said. “We don’t know the entire framework yet in Arizona. But ultimately a truly competitive market benefits consumers while making the industry a reliable revenue producer for the state for years to come.”
For more information and analysis on regulated sports betting in Arizona, visit PlayAZ.com/news.
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Internet Vikings, a licensed in-state hosting provider for iGaming and online sports betting, has received official approval from the Arizona Department of Gaming to launch its VMware-based private cloud hosting solutions. This achievement allows the company to provide secure and scalable hosting for licensed operators taking sports betting wagers across Arizona, fully complying with the Arizona Administrative Code (A.A.C).
This builds on Internet Vikings’ success in May 2023, when the company became the first online sports betting hosting provider fully licensed in Arizona. The VMware cloud solutions provided by Internet Vikings meet the regulatory and operational demands of the market, ensuring operators in the state can count on compliant infrastructure.
“Our VMware cloud hosting solutions are designed to support the iGaming and online sports betting markets with the highest levels of performance, security, and compliance. The team is pleased to continuously meet the requirements set forth by the states, and this most recent authorization in Arizona is a great step forward for us,” said Rickard Vikström, CEO and Founder of Internet Vikings.
“By offering private cloud hosting on VMware, Internet Vikings ensures clients have access to assured redundancy, disaster recovery, and on-demand scaling. This technology provides exceptional resource optimization and our team is ready to support businesses in taking full advantage of its features,” said Kristoffer Ottosson, COO at Internet Vikings.
With a presence now firmly established in Arizona, Internet Vikings continues supporting online sports betting operators in complying with state regulations while delivering the infrastructure best suited to the customers needs.
The Arizona Department of Gaming (ADG) announced that it has allocated an event wagering operator license to Plannatech as the designee for the San Carlos Apache Tribal Gaming Enterprise, as well as allocated an event wagering operator license to Sporttrade as the designee for the Quechan Indian Tribe of the Fort Yuma Indian Reservation, pursuant to A.R.S. § 5-1304 and A.A.C. R19-4-105 and 106.
On June 7, 2024, ADG announced that it would begin accepting applications for available event wagering licenses, which included no less than one event wagering license reserved for Arizona Tribes and no less than one event wagering license reserved for Arizona Sports Franchises, as defined in A.R.S. § 5-1301(7).
The application window for event wagering licenses opened on July 8, 2024, and closed on July 19, 2024. Applicants were required to submit their completed applications within this timeframe in order to have been considered for an event wagering license.
ADG
Arizona Department of Gaming Reports $43.6 Million in Tribal Gaming Contributions for the Fourth Quarter of Fiscal Year 2024
The Arizona Department of Gaming (ADG) announced today $43,586,004 in tribal gaming contributions to the Arizona Benefits Fund for the fourth quarter of Fiscal Year (FY) 2024. This amount represents an approximate 3.3 percent increase when compared to the same quarter of FY 2023.
“Celebrating yet another remarkable milestone in tribal gaming, we are thrilled to announce that Arizona has witnessed yet another record-breaking year,” said Jackie Johnson, Cabinet Executive Officer, ADG. “With a record contribution of $157.2 million to the Arizona Benefits Fund, our tribal partners have once again demonstrated their unwavering commitment to the prosperity of our state and local communities. We extend our heartfelt gratitude to our tribal partners for their continued dedication and collaboration.”
The Arizona Benefits Fund receives 88 percent of tribal gaming contributions, providing significant dollars to support instructional improvement in schools, trauma and emergency care, tourism, and wildlife conservation throughout the state.
Tribal gaming contributions to the Arizona Benefits Fund for the 4th quarter of the State’s FY 2024 are as follows:
| Instructional Improvement Fund/Education ………………………………………………….. | $22,474,451 |
| Trauma and Emergency Services Fund ………………………………………………………….. | $10,861,632 |
| Arizona Department of Gaming operating costs ………………………………………………. | $3,308,133 |
| Arizona Wildlife Conservation Fund ……………………………………………………………….. | $3,103,324 |
| Tourism Fund ………………………………………………………………………………………………. | $3,103,324 |
| Problem Gambling Education, Treatment and Prevention …………………………………… | $735,140 |
FY 2024 Qtr 4 Total: Tribal Gaming Contributions to the Arizona Benefits Fund….. $43,586,004
Per the Arizona Tribal-State Gaming Compacts, tribes with casinos also contribute a percentage of their Class III gross gaming revenue to cities, towns, and counties. Total tribal contributions to the Arizona Benefits Fund in addition to cities, towns, and counties in the state has amounted to over $2.2 billion since FY 2004. Currently, there are 25 Class III casinos in Arizona, which ADG regulates in partnership with Arizona tribes.
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