Arizona Opens Application Process for Betting Licenses

The Arizona Department of Gaming has announced that it will begin accepting applications for new event wagering licenses starting June 26, 2026.

The licensing process, which runs until July 10 at 5 p.m. local time, will include at least one license reserved for Arizona Tribes and another for Arizona Sports Franchises. The agency warned in its Wednesday(May 27) release that applicants must submit complete applications within the set window to be considered.

Cliff Holden, Assistant Director of Certification and Licensing, said, “As the state regulator, we remain dedicated to consumer protection and a thorough licensing review process. We look forward to receiving new applications for regulated event wagering.”

Six licenses up for grabs

Arizona’s sports betting market is once again opening its doors for the first time since June 2024, with six licenses now available for new operators. When lawmakers approved legal wagering in 2021, they set a cap of 20 licenses, split evenly between Arizona tribes and professional sports franchise partners.

Over time, however, the number of active operators has dropped, leaving only 14 currently in play.

Several sportsbooks have exited the state in recent years as companies adjusted their national strategies. Brands such as Betfred, SuperBook Sports, Betway, Fubo Sportsbook, TwinSpires, Unibet, and WynnBet all pulled out, while SaharaBets lost its spot after the Arizona Coyotes relocated to Utah. Despite these exits, the market still features major names including DraftKings, FanDuel, BetMGM, Caesars, bet365, and Fanatics.

The market has also seen massive growth since its launch, recording over $33.9 billion in wagers and generating nearly $180 million in privilege fees for the state. In 2025 alone, sportsbooks produced more than $713 million in revenue. Arizona’s handle ranks sixth nationwide, showing the strength of its market even as operators come and go.

Prediction markets putting pressure?

The timing of Arizona’s license window comes as prediction markets are expanding quickly and reshaping the betting space.

Platforms such as Kalshi and Polymarket operate under federal approval from the Commodity Futures Trading Commission (CFTC). Because they are treated as financial exchanges, they argue that federal law overrides state gambling rules. This allows them to offer event contracts in all 50 states.

The numbers show how significant their presence has become. Traditional sportsbooks contribute heavily to state budgets, with tax rates as high as 51% in New York. Prediction markets, however, do not pay state gaming taxes. The American Gaming Association estimates that states and tribes lose more than $1 billion in tax revenue each year because of this difference.

During the 2026 NCAA March Madness tournament, Kalshi reported $3.3 billion in trading volume, which matched the $3.3 billion wagered across all U.S. sportsbooks combined.

Arizona has already tested its authority against these platforms. The state tried to prosecute Kalshi for operating without a local license, but earlier this month, a federal judge issued a preliminary injunction stopping Arizona from enforcing its gambling laws against CFTC‑regulated markets.

The court ruled that event contracts qualify as swaps under the Commodity Exchange Act and fall under federal jurisdiction. It explained that letting states pursue their own enforcement would create the “inconsistent regulatory patchwork that Congress intended to avoid.”

This ruling is part of a wider national dispute. Courts in different states have reached different conclusions, with the Third Circuit siding with Kalshi in New Jersey and the Ninth Circuit expected to rule soon. The CFTC and Department of Justice have also filed cases against states, including Connecticut, Illinois, New York, Wisconsin, and, recently, Rhode Island, to defend federal authority.

Arizona Opens Application Process for Betting Licenses

Six licenses up for grabs

Prediction markets putting pressure?

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