Arizona debuts operator-friendly sports betting tax rates
Mobile sportsbook operators to be taxed at just 10% with $100,000 application fee ahead of September launch
Arizona legislators have revealed that prospective mobile sportsbook operators will be taxed at a rate of just 10% of gross gambling revenue (GGR).
Publishing a second draft of sports betting rules, Arizona’s Department of Gaming (ADG) confirmed that retail sportsbook operators would be taxed at 8% of GGR, rising by 2% for mobile and online counterparts.
The tax rates would make Arizona one of the more attractive states for sports betting operators, in line with rates used in Colorado, West Virginia, and eventually New York.
The ADG has also revealed application and license fee rates for operators looking to expand into the Grand Canyon State.
Interested firms will have to pay a $100,000 application fee, with a further $750,000 payable once a five-year sports betting license is awarded.
Operators will then be charged a fee of $750,000 for the renewal of a sports betting license.
Arizona received US Department of Interior approval for a tribal-state gaming compact on May 24, with the state reportedly seeking a September launch for regulated operations to coincide with the new NFL season.
Arizona’s sports betting model will be unique in that its 20 licenses will be equally divided between its gaming tribes and professional sports teams, a measure which could help to ensure a competitive and consumer-friendly market.
The approval from the Interior Department’s Bureau of Indian Affairs represented the final step to sports betting legalization, but the sports teams will still have to gain state-issued licenses before launching operations.
Operators have already been circling Arizona, with Caesars Entertainment joining forces with the Arizona Diamondbacks, FanDuel partnering with the Phoenix Suns, and DraftKings linking up with TPC Scottsdale — which hosts an annual PGA Tour event.
Last week, Bally’s agreed a 15-year betting and sponsorship partnership with Arizona-based Women’s National Basketball Association (WNBA) franchise Phoenix Mercury.