Starting on August 13, the Arizona Department of Gaming will commence the acceptance of applications for a maximum of 10 limited event betting operator licenses intended for retail sports wagering in collaboration with a racetrack or off-track betting facility.

The application period will last for two weeks. Aspirants must submit a fee of $1,000. Those granted licenses will be required to pay an initial fee of $10,000, followed by an annual fee of $5,000. The tax rate on retail revenue earned under these licenses is set at 8%, which is lower than the 10% tax rate for online sports betting.

“All candidates for limited event wagering operator licenses will be subjected to a comprehensive evaluation process aimed at guaranteeing consumer protection,” commented Cliff Holden, Assistant Director of Certification and Licensing at ADG. “We are eager to review the upcoming applications for limited event wagering within Arizona.”

The regulatory body revealed the licensing process on Tuesday, along with the criteria and regulations for granting these licenses. This initiative is a response to Governor Katie Hobbs’ proposed increase in the online sports betting tax to 45% for operators with monthly gross event wagering receipts exceeding $75 million, a proposal that was ultimately excluded from the finalized fiscal year 2027 budget.

 Governor Katie Hobbs

This announcement follows the recent issuance of cease-and-desist orders by the ADG to several operators, including BetOpenly, Bookmaker, ClubWPT Online Poker, Kutt Inc. and Raffle Creator, for allowing illegal customer transactions in Arizona.

The regulatory authority pointed to infractions such as the unlawful promotion of gambling, unauthorized business control, and money laundering. Non-compliant operators may confront criminal or civil penalties.

As of 2025, the ADG has issued more than 15 cease-and-desist orders to various operators for offenses including operating without proper gaming licenses and providing sweepstakes casino gaming.