Following the passage of Arizona’s sports betting bill (House Bill 2772), ArizonaCasinos.com projects that the state at full maturity could produce $252 million in annual revenue. Using the minimum tax rate of 8% outlined in Arizona’s bill, that projection would yield $20,160,000 in yearly tax revenue for the state General Fund.
Under Arizona’s landmark sports betting bill, up to 20 different sports betting operators could offer betting platforms in the Grand Canyon State. Tribal casinos, sports franchises, and sporting venues in the state will all be eligible to apply for operating licenses.
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Geoff Fisk, Senior Analyst for ArizonaCasinos.com, said, “Arizona has all the pieces in place to evolve as a successful sports betting market. Phoenix is one of the best sports cities in the US, and the state hosts a thriving tribal casino industry. Lawmakers went all-out in the effort to make Arizona a major sports betting hub. With 20 licenses up for grabs, we’ll see all of the biggest names in the industry want a piece of the Arizona market.
The $252 million annual revenue projection was reached through careful analysis of other US and international sports betting markets. Though 20 licenses will be allowed by Arizona’s law, it coil take multiple years for every license to be granted. In the first 6-12 months of Arizona sports betting, ArizonaCasinos.com projects 8-12 licenses will be granted, allowing operators to launch quickly in response to final regulations.
Sportsbook operators are already gearing up for an Arizona launch. FanDuel announced a partnership with the Phoenix Suns NBA franchise, which includes plans for retail and online sports betting. DraftKings partnered with the PGA Tour and announced plans to build a retail sportsbook at TPC Scottsdale in addition to launching an online platform.
Fisk continued: “The professional sports partnerships make so much sense. Arizona’s franchises are fully embracing sports betting, and those fan bases will do the same. That effect will boost the state’s industry as a whole, including the mobile-only sportsbooks operated by the tribal casinos.”