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Sub-national
North America

Arizona (USA): gambling regulation and licensing

State of Arizona

Part of United States

  • Online sports bettingRegulated
  • Online casinoProhibited
  • Online pokerProhibited
  • Horse race bettingRegulated
  • Daily fantasy sportsRegulated
  • Prediction marketsGrey market
  • Land-based (reference)Regulated
Regulator
Arizona Department of Gaming
Headline tax
10% GGR
Licence required
Yes
Last verified
21 Oct 2026

Summary

Arizona licenses online and retail sports betting, which its law calls event wagering, and paid fantasy sports, but not online casino or poker. The Arizona Department of Gaming regulates both under Title 5, Chapters 11 and 10 of the Revised Statutes, enacted by Laws 2021, Chapter 234 alongside amended tribal-state gaming compacts, and betting began on 9 September 2021. The law allows up to ten operator licences for professional sports teams and PGA Tour and NASCAR venues and up to ten for Arizona tribes, plus ten limited licences for racetracks and off-track sites; national brands take part as designees or management services providers, and 14 operators appear in the Department's March 2026 revenue report. Bettors must be 21 and in Arizona, and not on Indian lands. The privilege fee is 10% of adjusted gross event wagering receipts for mobile and 8% for retail, and 5% of adjusted revenues for fantasy contests; operators that launched in 2021 lose the deduction for free bets from 2027. In the year to June 2025 Arizonans wagered $8.54 billion, and receipts subject to the fee, mobile and retail combined, were $442.9 million, 11% more than a year earlier. The Governor proposed in January 2026 to tax the largest operators at 45%, but the budget the Legislature enacted left it out and the statutory cap is still 10%. Casino gaming is confined to tribal casinos, and the Department states that online casinos are not legal. The live issue is prediction markets: the Attorney General filed 20 criminal counts against Kalshi in March 2026, but a federal court has enjoined the state since May 2026 from enforcing its gambling laws against contracts on CFTC-regulated exchanges.

Common pitfalls

Treating the sportsbook brand as the licence holder: the operator licence belongs to a team, venue or tribe, and the brand is usually its designee or management services provider. Assuming state licences cover bets placed on reservations: a licensed operator may not accept a wager from someone on Indian lands, where wagering is governed by the compacts. Reading the 10% as the whole story: retail pays 8%, and free bets reduce the base until each operator's sixth year.

Key facts

Regulator
Arizona Department of Gaming (ADG)
Regulator type
Sub-national body
Headline tax
10% GGR
Licence required
Yes
Minimum age
21+
Tax base
A privilege fee of 10% of adjusted gross event wagering receipts for mobile wagering and 8% for retail (A.A.C. R19-4-112; the statutory maximum is 10% under A.R.S. 5-1318(A)). Adjusted receipts are gross wagering receipts, excluding voided bets, less winnings paid and federal excise tax, less free bets and promotional credits redeemed within a cap that falls from 20% of gross wagering receipts in an operator's first two years to 15% in year three and 10% in years four and five, with no deduction from year six (5-1301(1)). The fee is assessed only on positive amounts and is due by the 25th of the following month. Fantasy contest operators pay 5% of adjusted revenues (entry fees less prizes, times the in-state percentage; R19-4-208, 5-1211).
Capital
Phoenix
Currency
USD
Official languages
English

How to get a gambling license in Arizona

The regulator is the Arizona Department of Gaming (ADG).

We record 8 licence types for Arizona.

For the Event wagering operator licence (sports team, PGA Tour or NASCAR venue category), the application fee is $100,000 (as of 14 Dec 2025) and the annual fee is $150,000 (as of 14 Dec 2025).

Applications
Capped at 20 licences
Time to licence
The statute requires a licence within 60 days of a complete application unless grounds to refuse appear (A.R.S. 5-1305(C)); the Department says most investigations finish within 30 days and suitable suppliers receive a temporary licence within five days.
Local presence
Servers must be located locally.
Financial guarantee
Operators, designees, limited operators and management services providers must hold a reserve of cash, letters of credit, bonds or similar of at least $500,000 or enough to cover all outstanding wagering liability and player funds, whichever is greater, and keep separate player bank accounts (A.A.C. R19-4-113). The Department may also require a bond to cover background investigation costs (A.R.S. 5-1310(B)).
Headline tax
10% GGR (see Taxation for the full position)

Licence fees in Arizona

Licence typeApplication feeAnnual feeTerm
Event wagering operator licence (sports team, PGA Tour or NASCAR venue category)The Department's fee table lists a $100,000 application fee, a $750,000 initial licence fee and a $150,000 annual licence fee; the application fee is credited against the initial licence fee (A.R.S. 5-1305(D)). Background investigation costs above the fees may be charged (5-1310(B)).$100,000 (as of 14 Dec 2025)$150,000 (as of 14 Dec 2025)5 years (A.R.S. 5-1304(E))
Event wagering operator licence (tribal category)Same fee schedule as other operator licences. Where a tribe appoints a designee, the designee is licensed and pays the fees instead (A.A.C. R19-4-104(B)).$100,000 (as of 14 Dec 2025)$150,000 (as of 14 Dec 2025)5 years
Designee licence$100,000 application fee, $750,000 initial licence fee and $150,000 annual licence fee under the Department's fee table.$100,000 (as of 14 Dec 2025)$150,000 (as of 14 Dec 2025)5 years (A.A.C. R19-4-104(C))
Limited event wagering operator licenceThe Department's fee table lists a $1,000 application fee, a $10,000 initial licence fee and a $5,000 annual licence fee, but A.A.C. R19-4-105(C) sets a $5,000 application fee, a $25,000 initial licence fee and a $5,000 annual licence fee; the application fee is left blank until the conflict is resolved.Not yet verified$5,000 (as of 14 Dec 2025)2 years under A.R.S. 5-1307(E)
Management services provider licence$1,000 application fee, $10,000 initial licence fee and $5,000 annual licence fee under the Department's fee table. The licence must be held before the operator contract is signed.$1,000 (as of 14 Dec 2025)$5,000 (as of 14 Dec 2025)2 years (A.R.S. 5-1309(C))

Built from the record on this page, last verified 21 Oct 2026. The Licensing and Taxation sections carry the full detail and sources.

Licensing

Licence required
Yes
Application window
Capped
Local establishment required
Not yet verified
Local server required
Yes
Licence cap
20
Typical time to licence
The statute requires a licence within 60 days of a complete application unless grounds to refuse appear (A.R.S. 5-1305(C)); the Department says most investigations finish within 30 days and suitable suppliers receive a temporary licence within five days.
Bank guarantee or bond
Operators, designees, limited operators and management services providers must hold a reserve of cash, letters of credit, bonds or similar of at least $500,000 or enough to cover all outstanding wagering liability and player funds, whichever is greater, and keep separate player bank accounts (A.A.C. R19-4-113). The Department may also require a bond to cover background investigation costs (A.R.S. 5-1310(B)).
Notable licensees
FanDuel, DraftKings (Crown Gaming), BetMGM, Caesars (American Wagering), bet365, Fanatics, PENN / ESPN Bet, Rush Street Interactive, Seminole Hard Rock Digital, Desert Diamond Mobile, Bally's Interactive, Sporttrade, Plannatech
Certification requirements
Event wagering equipment and services must be tested and approved by an independent laboratory the Department approves (A.R.S. 5-1308(E)); systems are tested before use and recertified (A.A.C. R19-4-120, R19-4-126); a geofence must check location before and during each session (R19-4-117); and operators must contract with a licensed integrity monitoring provider (5-1302(G)(6)).
Barriers to entry
Operator licences are reserved for Arizona professional sports teams and franchises, the PGA Tour and NASCAR venues, and tribes that signed the 2021 compact amendment, with at most ten in each group; national brands enter as designees or licensed management services providers. When licences free up the Department allocates them in application periods: in FY 2024 it allocated licences to bet365, Fanatics, Plannatech and Sporttrade as tribal designees. Employees of teams, players, coaches and people convicted of listed offences cannot be licensed (A.R.S. 5-1311(A)).

Licence types

  • Event wagering operator licence (sports team, PGA Tour or NASCAR venue category)

    Scope
    Retail wagering within five blocks of the sports facility and mobile wagering statewide; at most ten licences for non-tribal applicants; one per person
    Term
    5 years (A.R.S. 5-1304(E))
    Application fee
    $100,000 as of 14 Dec 2025
    Annual fee
    $150,000 as of 14 Dec 2025
    Fee basis
    The Department's fee table lists a $100,000 application fee, a $750,000 initial licence fee and a $150,000 annual licence fee; the application fee is credited against the initial licence fee (A.R.S. 5-1305(D)). Background investigation costs above the fees may be charged (5-1310(B)).
    Renewal terms
    Renewable if the licensee has substantially complied with the law and pays its annual fees (A.R.S. 5-1304(E)).

  • Event wagering operator licence (tribal category)

    Scope
    Mobile wagering only, outside the tribe's Indian lands and throughout the state; at most ten licences, for tribes that signed the 2021 compact amendment or entities they wholly own
    Term
    5 years
    Application fee
    $100,000 as of 14 Dec 2025
    Annual fee
    $150,000 as of 14 Dec 2025
    Fee basis
    Same fee schedule as other operator licences. Where a tribe appoints a designee, the designee is licensed and pays the fees instead (A.A.C. R19-4-104(B)).
    Renewal terms
    As for other operator licences.

  • Designee licence

    Scope
    Operates event wagering on behalf of a qualified team, venue or tribe and is treated as the licensee; needs no separate management services provider licence if it runs the platform
    Term
    5 years (A.A.C. R19-4-104(C))
    Application fee
    $100,000 as of 14 Dec 2025
    Annual fee
    $150,000 as of 14 Dec 2025
    Fee basis
    $100,000 application fee, $750,000 initial licence fee and $150,000 annual licence fee under the Department's fee table.
    Renewal terms
    The designee must keep its designation from a qualified operator to continue.

  • Limited event wagering operator licence

    Scope
    One retail location at a racetrack or additional wagering facility partnered with an operator, at least five miles from tribal casinos and other event wagering facilities; at most ten
    Term
    2 years under A.R.S. 5-1307(E)
    Annual fee
    $5,000 as of 14 Dec 2025
    Fee basis
    The Department's fee table lists a $1,000 application fee, a $10,000 initial licence fee and a $5,000 annual licence fee, but A.A.C. R19-4-105(C) sets a $5,000 application fee, a $25,000 initial licence fee and a $5,000 annual licence fee; the application fee is left blank until the conflict is resolved.
    Renewal terms
    The statute requires relicensing every two years; the Department's rule says five years (A.A.C. R19-4-104(D)).

  • Management services provider licence

    Scope
    Operates, manages or controls event wagering for one or more operators, including platforms, odds and risk management
    Term
    2 years (A.R.S. 5-1309(C))
    Application fee
    $1,000 as of 14 Dec 2025
    Annual fee
    $5,000 as of 14 Dec 2025
    Fee basis
    $1,000 application fee, $10,000 initial licence fee and $5,000 annual licence fee under the Department's fee table. The licence must be held before the operator contract is signed.
    Renewal terms
    Renewed every two years for licensees in compliance.

  • Supplier and ancillary supplier licences

    Scope
    Makers and suppliers of event wagering equipment, systems, software and data; required off-reservation with no dollar threshold
    Term
    2 years (A.R.S. 5-1308(D))
    Fee basis
    $1,500 initial licence fee and $500 renewal fee under the Department's fee table; A.A.C. R19-4-105(C) sets $5,000 and $1,000 for suppliers and $1,500 and $500 for ancillary suppliers. The Department may accept another jurisdiction's licence as evidence of suitability.
    Renewal terms
    Renewed every two years; operators must report their suppliers quarterly (A.A.C. R19-4-104(G)).

  • Event wagering employee licence

    Scope
    Employees directly involved in managing or controlling event wagering in Arizona
    Term
    2 years (A.A.C. R19-4-104(A))
    Fee basis
    $250 initial licence fee and $125 renewal fee under the Department's fee table.
    Renewal terms
    Renewal every two years as a condition of continued employment.

  • Fantasy sports contest operator licence

    Scope
    Paid fantasy sports contests offered to the public; no limit on the number of licences
    Term
    2 years (A.R.S. 5-1202(H))
    Fee basis
    $2,000 initial licence fee and $1,000 renewal fee; the same amounts apply to fantasy management companies, and fantasy suppliers pay $250 and $125.
    Renewal terms
    Renewed biennially while the licensee remains eligible.

Taxation

Headline GGR tax
10% GGR
Effective date
9 Sept 2021
Player winnings tax
Winnings are taxable income for Arizona income tax and federal income tax; federally, losses are deductible only by itemising and only up to the winnings reported.
Withholding mechanism
Event wagering and fantasy operators must withhold Arizona income tax, at the highest rate in A.R.S. 43-1011, from winnings that are subject to federal withholding (A.R.S. 43-405). Before paying winnings that require a Form W-2G they must also check the debt setoff lists and withhold past-due child support, court debts and other state obligations (A.R.S. 5-1320(F)).
Tax base
A privilege fee of 10% of adjusted gross event wagering receipts for mobile wagering and 8% for retail (A.A.C. R19-4-112; the statutory maximum is 10% under A.R.S. 5-1318(A)). Adjusted receipts are gross wagering receipts, excluding voided bets, less winnings paid and federal excise tax, less free bets and promotional credits redeemed within a cap that falls from 20% of gross wagering receipts in an operator's first two years to 15% in year three and 10% in years four and five, with no deduction from year six (5-1301(1)). The fee is assessed only on positive amounts and is due by the 25th of the following month. Fantasy contest operators pay 5% of adjusted revenues (entry fees less prizes, times the in-state percentage; R19-4-208, 5-1211).

Scheduled changes

  • No deduction for free bets or promotional credits from 1 Jan 2027
    Enacted

    Free bet and promotional credit deduction ends for operators that began wagering in 2021, whose sixth year starts on 1 January 2027.

  • 45% for the largest operators from Not included in the FY 2027 budget enacted in 2026; the statutory cap remains 10%.
    Proposed

    Executive proposal to tax operators with more than $75 million of monthly revenue at 45%.

Earmarked levies

  • Event Wagering Fund: 90% of each month's deposits transferred to the state general fund; the Department may spend up to 10% on regulating event wagering and fantasy sports, including up to $500,000 a year on problem gambling programmes (State general fund and the Department of Gaming)

Compliance

Minimum age
21+
KYC timing
Before the patron can create an account from which wagers can be placed (A.A.C. R19-4-133(B)).
AML regime
The Department must require mechanisms to detect and prevent fraud, money laundering and collusion (A.R.S. 5-1302(G)(6)) and rules on Bank Secrecy Act and PATRIOT Act reporting and suspicious wagers (5-1314(D)); internal controls must include Bank Secrecy Act procedures (A.A.C. R19-4-111), and licensees must report suspicious activity, including the use of illegally derived money, immediately (5-1316(A)).
Central monitoring system
Operators must contract with a Department-licensed integrity monitoring provider (A.R.S. 5-1302(G)(6)) and give the Department real-time account-level wager data and real-time geofence data (5-1316(B); A.A.C. R19-4-117(F)).
Data localisation
Wagers may be accepted only on servers located in Arizona; cloud storage is allowed for duplicate or non-transactional data with written approval (A.A.C. R19-4-116).
KYC requirements
Operators must verify age and identity before an account can be used to wager, may use an identity verification provider, and must allow only one account per patron. Account files hold legal name, date of birth, the last four digits of the Social Security number or a driver's licence or equivalent number, residential and email addresses, and the method and date of verification; identity must be re-verified on suspicion of misuse (A.A.C. R19-4-133).
Stake limits
Not yet verified
Mandatory player messaging
The statewide helpline telephone number, text and website on every platform landing page and kiosk (A.A.C. R19-4-150(A)(2)), in account terms and conditions (R19-4-134(K)) and in all advertising (R19-4-150(A)(3)); a notice of the licence on the platform landing page (A.R.S. 5-1305(G)); and house rules available on every platform (5-1314(C)).
Reporting obligations
Real-time, account-level reporting of every wager to the Department (A.R.S. 5-1316(B)); immediate reports of abnormal or suspicious betting to the Department and sports governing bodies (5-1316(A)); monthly receipts reports and fees by the 25th (R19-4-112); an annual independent CPA audit (5-1319); reports within 24 hours when a self-excluded person has wagered (5-1320(B)(7)); notice of material changes within 30 days (5-1305(E)); and a quarterly list of suppliers (R19-4-104(G)).
Game content restrictions
No wagers on injuries or penalties, and no wagers on individual actions or performances during college games, although game outcomes and season awards are allowed (A.R.S. 5-1315(A)); no high school events (5-1311(B)(4)); parlays and props only of types the Department prescribes (5-1315(B)); every event and wager type must be in a catalogue approved by the Department (R19-4-129); and official league data must be used for in-play and other tier two wagers where a league offers it on commercially reasonable terms (5-1314(F)).

Minimum age by vertical

  • Online sports betting: 21+
  • Daily fantasy sports: 21+

Advertising

Advertising permitted
Yes
Sponsorship rules
Advertising is barred at venues where most of the audience at many events is reasonably expected to be under 21 (A.A.C. R19-4-110(D)).
Bonus advertising rules
Promotions must be notified to the Department before launch, their terms must be clear and not misleading, they may not be described as free unless they are free, and they may not stop a patron withdrawing their own funds or winnings from them (A.A.C. R19-4-136).
Mandatory warnings
Every advertisement, including television, radio, internet, print and billboards, must carry a responsible gaming message with the Department's statewide helpline number (1-800-NEXT-STEP) or another approved helpline (A.A.C. R19-4-150(A)(3)).
Penalties for breach
Targeting minors is a class 3 misdemeanour for a first offence and a class 1 misdemeanour after that (A.R.S. 5-1311(C)); the Department may also fine, condition, suspend or revoke a licence (A.R.S. 5-1306; A.A.C. R19-4-146).

Restrictions

  • Advertising and promotion must not target, or be of a kind that specifically appeals to, people under 21 (A.A.C. R19-4-110(A); A.R.S. 5-1311(B)(3)).
  • Advertising must not be misleading or false, promote irresponsible or excessive betting, or suggest that betting brings social, financial or personal success (R19-4-110(B), (C)).
  • No advertising at venues where most of the audience at many events is expected to be under 21 (R19-4-110(D)).
  • Betting brands, logos and trademarks may not appear on clothing, toys, games or game equipment intended mainly for under-21s (R19-4-110(E)).
  • No advertising in college or university-owned news outlets or on college and university campuses (R19-4-110(F)).
  • Self-excluded people must be removed from all mailing lists (A.R.S. 5-1320(B)(5)); fantasy operators must not target self-excluded people or under-21s or use misleading advertising (5-1205(B)).

Payments

Credit card ban
No
Crypto stance
Not yet verified
Permitted methods
Cash and cash equivalents, Electronic funds transfer, Credit card, Debit card, Cheque, Wire transfer, Winnings and promotional or bonus credit, Other methods with the Department's written approval
Withdrawal timeframe rules
Withdrawal requests must be honoured within seven days unless the operator suspects fraud or unlawful conduct, in which case it must notify the patron, investigate promptly and report the result to the patron and the Department within two days of finishing. Accounts dormant for three years are closed and unclaimed funds go to the Department of Revenue (A.A.C. R19-4-135). Operators may not offer or extend credit to bettors (A.R.S. 5-1311(B)(2)), and electronic benefit transfer cards may not be used in retail wagering areas (R19-4-128(B)).

Enforcement

ISP blocking
Not yet verified
DNS blocking
Not yet verified
Payment blocking
Not yet verified
App store takedowns
Not yet verified
Administrative penalties
The Department may deny, suspend or revoke licences (A.R.S. 5-1306), summarily suspend a licence that threatens public welfare (5-1306(C)), and place conditions on or fine licensees (A.A.C. R19-4-146). For fantasy contests it may issue cease-and-desist orders, seek injunctions and impose civil penalties of up to $10,000 per violation (5-1210(D), (E)).
Criminal penalties
Promotion of gambling is a class 5 felony (A.R.S. 13-3303); bookmaking is a class 1 misdemeanour (13-3305); breaches of the event wagering licence restrictions are class 3 misdemeanours, class 1 on repeat (5-1311(C)); unlicensed fantasy contests are class 3 misdemeanours, class 1 from the third offence (5-1210(C)); election wagering is a class 2 misdemeanour (16-1015).
Operator liability
A designee appointed by a team, venue or tribe is treated as the licensee, and the appointing owner or tribe is not responsible for its conduct (A.R.S. 5-1301(7), 5-1303(H)).
Player liability
Knowingly benefiting from unregulated gambling is a class 1 misdemeanour except as a player in social gambling (A.R.S. 13-3304). Winnings of self-excluded people are forfeited to the Division of Problem Gambling (5-1320(C)).

Notable actions

  • Harp Media B.V. (Bovada.com and Bovada.lv)8 Nov 2024

    Cease-and-desist letter alleging felony promotion of gambling, illegal control of an enterprise and money laundering; told to exclude Arizona residents

  • Modo.us, Epic Hunts, Generiz, ProphetX, MyBookie and BetUS17 Apr 2025

    Cease-and-desist orders to unlicensed sweepstakes casinos, sportsbooks and a peer-to-peer exchange

  • KalshiEX LLCMay 2025

    Department cease-and-desist letter requiring Kalshi to cease gambling operations in Arizona

  • ReBet, Novig, Dallas Safari Club, Fanthem, Stake.US, BettorEdge and High 527 Jun 2025

    Cease-and-desist orders to unlicensed sportsbooks, exchanges, raffles and sweepstakes operators

  • Illegal gambling operations, fiscal year 202530 Jun 2025

    The Intelligence Unit ran 82 operations, issued 20 cease-and-desists, seized 24 gaming machines and $520,093 and closed 11 investigations with criminal charges

  • Raffall and an Arizona promoter of the "Phoenix Dream Home Sweepstakes"9 Sept 2025

    Cease-and-desist orders against a paid-entry home prize draw treated as illegal gambling

  • KalshiEX LLC and Kalshi Trading LLC17 Mar 2026

    Attorney General files a 20-count criminal information for an unlicensed wagering business and election wagering

  • State of Arizona (Kalshi and CFTC litigation)5 May 2026

    Federal preliminary injunction bars the state from enforcing its gambling laws against event contracts on CFTC-regulated exchanges

  • BetOpenly, Bookmaker, Club WPT Online Poker, Kutt Inc. and Raffle Creator10 Jul 2026

    Department cease-and-desist orders to stop all gambling operations in Arizona, alleging unlicensed event wagering and fantasy contests, online poker tournaments for paying entrants, casino games and raffles

Market data

Figures on this record are drawn from official regulator data.

Online GGR
$442,874,773 as of 30 Jun 2025
Reporting year
2025
Year-on-year growth
11.4%

GGR by vertical

  • Daily fantasy sports: $30,126,742 as of 30 Jun 2025

Timeline

  1. Apr 2021

    Governor signs event wagering and fantasy sports legislation (Laws 2021, Chapter 234) and the amended tribal-state gaming compacts

  2. 9 Sept 2021

    Legal sports betting begins in Arizona

  3. 8 Nov 2024

    Department sends a cease-and-desist letter to the operator of Bovada

  4. 17 Apr 2025

    Cease-and-desist orders to six unlicensed operators, including ProphetX and MyBookie

  5. May 2025

    Department orders Kalshi to cease gambling operations in Arizona

  6. 27 Jun 2025

    Cease-and-desist orders to seven more operators, including Novig and Stake.US

  7. Jan 2026

    Governor's FY 2027 Executive Budget proposes a 45% sports betting tax for operators with more than $75 million of monthly revenue

  8. 12 Mar 2026

    Kalshi sues Arizona officials in federal court

  9. 17 Mar 2026

    Attorney General charges Kalshi with 20 counts, including election wagering

  10. 2 Apr 2026

    The United States and the CFTC sue Arizona; the case is consolidated with Kalshi's

  11. 8 Apr 2026

    Federal court denies Kalshi a preliminary injunction

  12. 5 May 2026

    Federal court grants the CFTC a preliminary injunction against Arizona enforcement

  13. 11 Jun 2026

    House and Senate FY 2027 budget bills, as engrossed, leave out the sports betting tax increase

  14. 6 Jul 2026

    Arizona appeals the injunction to the Ninth Circuit

  15. 10 Jul 2026

    Department orders five more operators, including BetOpenly, Bookmaker and Club WPT Online Poker, to stop offering gambling in Arizona

  16. 28 Aug 2026

    Ninth Circuit rules in the Nevada Kalshi case that the Commodity Exchange Act does not preempt state sports betting law

  17. 1 Jan 2027

    Free bet deduction ends for operators that launched in 2021

Outlook

The Ninth Circuit decided the Nevada Kalshi appeal on 28 August 2026, which ends the stay order's wait in Arizona's own appeal against the federal injunction; Arizona filed the status report the stay order required on 4 September 2026. Until the injunction is lifted the state cannot pursue its criminal case or other enforcement against event contracts on CFTC-regulated exchanges. From 1 January 2027 operators that launched in 2021 can no longer deduct free bets or promotional credits, which widens the fee base without a change in the rate. The 45% proposal was not enacted in 2026.

Frequently asked questions

Is online casino legal in Arizona?
No. The Department of Gaming states that online casinos are not legal in Arizona, and no statute authorises them or online poker. Casino gaming takes place only at tribal casinos under the compacts.
What is the sports betting tax rate?
The privilege fee is 10% of adjusted gross event wagering receipts for mobile and 8% for retail. Free bets are deductible within falling caps until an operator's sixth year, which for 2021 launches is 2027. A proposed 45% rate for the largest operators was not enacted.
Who can hold an event wagering licence?
Up to ten Arizona professional sports teams, PGA Tour and NASCAR venues and up to ten tribes that signed the 2021 compact amendment. Brands such as FanDuel and DraftKings operate as their designees or as licensed management services providers.
What is the minimum age?
21 for event wagering and for paid fantasy sports contests.
Can prediction markets offer sports contracts in Arizona?
Arizona treats them as unlicensed event wagering and has charged Kalshi criminally, but since 5 May 2026 a federal preliminary injunction has barred the state from enforcing its gambling laws against contracts on CFTC-regulated exchanges while the appeals continue.
How does self-exclusion work?
Players can exclude themselves through the Department for one, five or ten years from event wagering and fantasy sports, from tribal casinos, or both; operators must close their accounts, stop marketing to them and forfeit any winnings.
How much does a gambling licence cost in Arizona?
For the Event wagering operator licence (sports team, PGA Tour or NASCAR venue category), the application fee is $100,000 (as of 14 Dec 2025) and the annual fee is $150,000 (as of 14 Dec 2025). For the Event wagering operator licence (tribal category), the application fee is $100,000 (as of 14 Dec 2025) and the annual fee is $150,000 (as of 14 Dec 2025). For the Designee licence, the application fee is $100,000 (as of 14 Dec 2025) and the annual fee is $150,000 (as of 14 Dec 2025). The Licensing section lists all 8 licence types recorded for Arizona. Last verified 21 Oct 2026.
Who regulates gambling in Arizona?
The Arizona Department of Gaming (ADG) regulates gambling in Arizona. Other authorities with a role include Arizona Attorney General and Arizona Racing Commission.
How long does it take to get a gambling licence in Arizona?
The statute requires a licence within 60 days of a complete application unless grounds to refuse appear (A.R.S. 5-1305(C)); the Department says most investigations finish within 30 days and suitable suppliers receive a temporary licence within five days. Last verified 21 Oct 2026.

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Prediction Markets

Ohio Gives Its Gaming Licensees Until 30 October to Stop Serving Prediction Markets

The Ohio Casino Control Commission has told every sportsbook, supplier, integrity monitor and testing laboratory it licenses to stop providing services "of any kind" to platforms offering sports event contracts in Ohio, or face reopened suitability investigations. With its cease-and-desist letters to the exchanges now challenged in court, Ohio is turning to the companies that keep them running.

Former Mansion Bet CEO Hit With Custodial Sentence in Ongoing Legal Battle
Prediction Markets

Nevada Calls Kalshi's Bid to Wait for the CFTC "Just Another Attempt at Delay"

Kalshi has asked the Ninth Circuit to hold its rehearing petition until the CFTC rewrites its rule on gaming contracts, which the agency says will be final within two months. Nevada's answer is that the court already knew the rule was changing, and that the panel's ruling never depended on it.

Cftc sues new york as federal war on state prediction market crackdowns escalates
Prediction Markets

CFTC Sends the White House Rules to Define Event Contracts as Swaps and Exclude Casino Games

The Commodity Futures Trading Commission has asked the White House to clear a rule defining event contracts as swaps, the classification on which its claim to exclusive jurisdiction rests, and a second that would exclude "casino-style gambling products" with immediate effect. Neither text is public, and both arrive days after a second federal appeals court rejected the swaps argument.

Kalshi Seeks CFTC Approval for Sports Betting-Style Markets, Escalating Legal Battle with States
Prediction Markets

IGA's Rocha: "DraftKings Has to Come Down Like a Piñata" Once Kalshi Loses

The Indian Gaming Association chair told Gaming America that more tribal lawsuits are coming after the Ninth Circuit, that DraftKings' tribal partnerships in Connecticut, Arizona and Washington are at risk over its prediction-market push, and that the Supreme Court will rule against Kalshi. CNIGA's James Siva: "We're keeping track."

Arizona becomes first us state to file criminal charges against kalshi over illegal gambling and
Prediction Markets

Kalshi Denied Again in Bid to Block State Gambling Law Enforcement

A federal judge in Utah has ruled against Kalshi's latest attempt to prevent a state from enforcing its gambling laws against the prediction-market operator, extending a string of legal setbacks that have repeatedly undermined the company's federal-preemption strategy at the state level.

All 14 articles on Arizona (USA) →

Sources

Source tiers. Tier 1: the law, official gazette, licence register or regulator itself. Tier 2: other official sources such as ministries, parliaments, courts and statistics agencies. Tier 3: established trade press, used to find and date the primary source. Only tier 1 and tier 2 sources can support a fact on their own.

  1. Arizona Department of Gaming home page (including the notice that online casinos are not legal in Arizona)

    Arizona Department of Gaming

    gaming.az.gov served a Cloudflare bot check that did not clear for plain or rendered fetches from this machine on 2026-09-23, so the document was read from the Internet Archive copy dated 7 September 2026.

    Archived copy
    Tier 1Accessed 23 Sept 2026
  2. About ADG: mission, divisions and funding

    Arizona Department of Gaming

    gaming.az.gov served a Cloudflare bot check that did not clear for plain or rendered fetches from this machine on 2026-09-23, so the document was read from the Internet Archive copy dated 1 May 2026.

    Archived copy
    Tier 1Accessed 23 Sept 2026
  3. ADG Staff

    Arizona Department of Gaming

    gaming.az.gov served a Cloudflare bot check that did not clear for plain or rendered fetches from this machine on 2026-09-23, so the document was read from the Internet Archive copy dated 1 May 2026.

    Archived copy
    Tier 1Accessed 23 Sept 2026
  4. Event Wagering and Fantasy Sports: Forms, Licensing and Fees (fee tables)

    Arizona Department of Gaming

    gaming.az.gov served a Cloudflare bot check that did not clear for plain or rendered fetches from this machine on 2026-09-23, so the document was read from the Internet Archive copy dated 14 December 2025.

    Archived copy
    Tier 1Accessed 23 Sept 2026
  5. Event Wagering and Fantasy Sports FAQ

    Arizona Department of Gaming

    gaming.az.gov served a Cloudflare bot check that did not clear for plain or rendered fetches from this machine on 2026-09-23, so the document was read from the Internet Archive copy dated 1 May 2026.

    Archived copy
    Tier 1Accessed 23 Sept 2026
  6. Self-Exclusion

    Arizona Department of Gaming

    gaming.az.gov served a Cloudflare bot check that did not clear for plain or rendered fetches from this machine on 2026-09-23, so the document was read from the Internet Archive copy dated 7 August 2026.

    Archived copy
    Tier 1Accessed 23 Sept 2026
  7. FY 2025 Annual Report (July 2024 to June 2025), submitted under A.R.S. 5-601(G), 5-104(P) and 5-1312

    Arizona Department of Gaming

    gaming.az.gov served a Cloudflare bot check that did not clear for plain or rendered fetches from this machine on 2026-09-23, so the document was read from the Internet Archive copy dated 30 July 2026.

    Archived copy
    Tier 2Accessed 23 Sept 2026
  8. FY 2024 Annual Report (July 2023 to June 2024)

    Arizona Department of Gaming

    gaming.az.gov served a Cloudflare bot check that did not clear for plain or rendered fetches from this machine on 2026-09-23, so the document was read from the Internet Archive copy dated 10 August 2025.

    Archived copy
    Tier 2Accessed 23 Sept 2026
  9. Event Wagering Revenue Report, March 1 to 31, 2026 (unaudited, self-reported by operators)

    Arizona Department of Gaming

    gaming.az.gov served a Cloudflare bot check that did not clear for plain or rendered fetches from this machine on 2026-09-23, so the document was read from the Internet Archive copy dated 17 May 2026. The Department notes that figures are self-reported and subject to adjustment after audit. The May 2026 report listed on the reports page was not archived and could not be read.

    Archived copy
    Tier 2Accessed 23 Sept 2026
  10. Event Wagering Operator License Qualification fact sheet

    Arizona Department of Gaming

    gaming.az.gov served a Cloudflare bot check that did not clear for plain or rendered fetches from this machine on 2026-09-23, so the document was read from the Internet Archive copy dated 9 November 2025.

    Archived copy
    Tier 1Accessed 23 Sept 2026
  11. Event Wagering Licensing FAQ

    Arizona Department of Gaming

    gaming.az.gov served a Cloudflare bot check that did not clear for plain or rendered fetches from this machine on 2026-09-23, so the document was read from the Internet Archive copy dated 8 November 2025.

    Archived copy
    Tier 1Accessed 23 Sept 2026
  12. News release: Arizona Celebrates One-Year of Legal Sports Betting

    Arizona Department of Gaming

    gaming.az.gov served a Cloudflare bot check that did not clear for plain or rendered fetches from this machine on 2026-09-23, so the document was read from the Internet Archive copy dated 12 March 2025.

    Archived copy
    Tier 2Accessed 23 Sept 2026Published 8 Sept 2022
  13. News release: Cease-and-Desist, Bovada Online Gambling

    Arizona Department of Gaming

    gaming.az.gov served a Cloudflare bot check that did not clear for plain or rendered fetches from this machine on 2026-09-23, so the document was read from the Internet Archive copy dated 22 January 2025.

    Archived copy
    Tier 2Accessed 23 Sept 2026Published 3 Dec 2024
  14. News release: Arizona Department of Gaming Issues Multiple Cease-and-Desists

    Arizona Department of Gaming

    gaming.az.gov served a Cloudflare bot check that did not clear for plain or rendered fetches from this machine on 2026-09-23, so the document was read from the Internet Archive copy dated 21 April 2025.

    Archived copy
    Tier 2Accessed 23 Sept 2026Published 17 Apr 2025
  15. News release: Arizona Department of Gaming Issues Several Cease-and-Desists

    Arizona Department of Gaming

    gaming.az.gov served a Cloudflare bot check that did not clear for plain or rendered fetches from this machine on 2026-09-23, so the document was read from the Internet Archive copy dated 17 July 2025.

    Archived copy
    Tier 2Accessed 23 Sept 2026Published 27 Jun 2025
  16. News release: Cease-and-Desists on "Phoenix Dream Home Sweepstakes"

    Arizona Department of Gaming

    gaming.az.gov served a Cloudflare bot check that did not clear for plain or rendered fetches from this machine on 2026-09-23, so the document was read from the Internet Archive copy dated 13 September 2025.

    Archived copy
    Tier 2Accessed 23 Sept 2026Published 9 Sept 2025
  17. News release: Take Back the Game, promoting the self-exclusion program

    Arizona Department of Gaming

    gaming.az.gov served a Cloudflare bot check that did not clear for plain or rendered fetches from this machine on 2026-09-23, so the document was read from the Internet Archive copy dated 31 March 2026.

    Archived copy
    Tier 2Accessed 23 Sept 2026Published 30 Mar 2026
  18. Arizona Administrative Code Title 19, Chapter 4, Article 1, Event Wagering (R19-4-101 to R19-4-153), Department copy v1.1

    Arizona Department of Gaming

    gaming.az.gov served a Cloudflare bot check that did not clear for plain or rendered fetches from this machine on 2026-09-23, so the document was read from the Internet Archive copy dated 19 July 2026. R19-4-104(D) requires limited event wagering operators to renew every five years, while A.R.S. 5-1307(E) says every two years; the statute prevails. The Secretary of State copy of Chapter 4 was also behind a bot check.

    Archived copy
    Tier 1Accessed 23 Sept 2026
  19. Arizona Administrative Code Title 19, Chapter 4, Article 2, Fantasy Sports Contests (Department copy)

    Arizona Department of Gaming

    gaming.az.gov served a Cloudflare bot check that did not clear for plain or rendered fetches from this machine on 2026-09-23, so the document was read from the Internet Archive copy dated 6 February 2025.

    Archived copy
    Tier 1Accessed 23 Sept 2026
  20. Arizona Revised Statutes Title 5 (index, updated for the 57th Legislature, 2nd Regular Session, 2026)

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  21. A.R.S. 5-1301, Definitions (event wagering; adjusted gross event wagering receipts and the free bet deduction)

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  22. A.R.S. 5-1302, Department of gaming; powers; duties

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  23. A.R.S. 5-1303, Event wagering; license required; exception

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  24. A.R.S. 5-1304, Licensure; application

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  25. A.R.S. 5-1305, License review; approval; fees; material change; exemption; display; transferability

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  26. A.R.S. 5-1306, License revocation; suspension; denial; grounds

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  27. A.R.S. 5-1307, Limited event wagering operator licenses

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  28. A.R.S. 5-1308, Supplier license

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  29. A.R.S. 5-1309, Management services provider license

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  30. A.R.S. 5-1310, License fees; bond

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  31. A.R.S. 5-1311, License restrictions; prohibited licensees; violation; classification

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  32. A.R.S. 5-1314, Event wagering authorized

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  33. A.R.S. 5-1315, Prohibited wagers

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  34. A.R.S. 5-1316, Integrity; reporting prohibited or suspicious conduct; investigations

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  35. A.R.S. 5-1318, Fees; event wagering fund; subaccount

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  36. A.R.S. 5-1319, Financial responsibility (annual independent audit)

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  37. A.R.S. 5-1320, Problem gambling; self-exclusion list; program; liabilities

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  38. A.R.S. 5-1202, Fantasy sports contests; exceptions; rules; licensure

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  39. A.R.S. 5-1205, Fantasy sports contests; prohibitions

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  40. A.R.S. 5-1210, Fantasy sports contests; violations; classification; penalties

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  41. A.R.S. 5-1211, Fantasy sports contests; fees; penalty

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  42. A.R.S. 5-112, Wagering legalized; simulcasting of races; advance deposit wagering

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  43. A.R.S. 13-3301, Gambling definitions (amusement, regulated and social gambling)

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  44. A.R.S. 13-3303, Promotion of gambling; classification

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  45. A.R.S. 13-3304, Benefiting from gambling; classification

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  46. A.R.S. 13-3305, Betting and wagering; classification

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  47. A.R.S. 16-1015, Election wagers; classification

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  48. A.R.S. 43-405, Extension of withholding to gambling winnings

    Arizona State Legislature (azleg.gov)

    Tier 1Accessed 23 Sept 2026
  49. Topic no. 419, Gambling income and losses (last reviewed 11 June 2026)

    Internal Revenue Service

    Tier 1Accessed 23 Sept 2026Published 11 Jun 2026
  50. Attorney General Mayes Charges Kalshi With Illegal Gambling Operation, Election Wagering in Arizona

    Arizona Attorney General

    Tier 2Accessed 23 Sept 2026Published 17 Mar 2026
  51. Attorney General Mayes Celebrates Ninth Circuit Ruling Affirming State Authority to Regulate Sports Betting

    Arizona Attorney General

    Tier 2Accessed 23 Sept 2026Published 28 Aug 2026
  52. KalshiEX LLC v. Johnson, No. 2:26-cv-01715-MTL (D. Ariz.), consolidated with United States v. Arizona, No. 2:26-cv-02246: docket (entries to 10 July 2026)

    United States District Court for the District of Arizona (PACER record mirrored by CourtListener)

    Tier 2Accessed 23 Sept 2026
  53. United States of America v. Arizona, State of, No. 2:26-cv-02246 (D. Ariz.): complaint by the United States and the CFTC, 2 April 2026

    United States District Court for the District of Arizona (PACER record mirrored by CourtListener)

    Tier 2Accessed 23 Sept 2026
  54. KalshiEX LLC v. Johnson, No. CV-26-01715-PHX-MTL: Order denying Kalshi a preliminary injunction (Doc. 51, 8 April 2026)

    United States District Court for the District of Arizona (PACER record mirrored by CourtListener)

    Tier 1Accessed 23 Sept 2026Published 8 Apr 2026
  55. KalshiEX LLC v. Johnson, No. CV-26-01715-PHX-MTL: Order granting the Federal Plaintiffs a preliminary injunction (Doc. 96, 5 May 2026)

    United States District Court for the District of Arizona (PACER record mirrored by CourtListener)

    Tier 1Accessed 23 Sept 2026Published 5 May 2026
  56. KalshiEX, LLC v. Johnson, No. 26-2978 (9th Cir.): docket

    United States Court of Appeals for the Ninth Circuit (PACER docket mirrored by CourtListener)

    Tier 2Accessed 23 Sept 2026
  57. Commodity Futures Trading Commission v. Johnson, No. 26-4281 (9th Cir.): docket (entries to 1 October 2026)

    United States Court of Appeals for the Ninth Circuit (PACER docket mirrored by CourtListener)

    Tier 2Accessed 14 Oct 2026
  58. FY 2027 JLBC Baseline and Executive Budget comparison (19 January 2026)

    Arizona Joint Legislative Budget Committee

    Tier 2Accessed 23 Sept 2026Published 19 Jan 2026
  59. General Fund Budget 4-Year Analysis: FY 2027 Executive Budget (10 February 2026)

    Arizona Joint Legislative Budget Committee

    Tier 2Accessed 23 Sept 2026Published 10 Feb 2026
  60. FY 2027 House and Senate budget plan as engrossed, with budget reconciliation bill provisions (11 June 2026)

    Arizona Joint Legislative Budget Committee

    Tier 2Accessed 23 Sept 2026Published 11 Jun 2026
  61. FY 2027 Appropriations Report: Department of Gaming (based on Laws 2026, Chapter 126)

    Arizona Joint Legislative Budget Committee

    Tier 2Accessed 23 Sept 2026Published 30 Jul 2026
  62. Commodity Futures Trading Commission v. Johnson, No. 26-4281 (9th Cir.): Defendants-Appellants' motion for summary disposition of civil appeal (Dkt. 25.1, 14 September 2026)

    United States Court of Appeals for the Ninth Circuit (PACER record mirrored by CourtListener)

    Tier 2Accessed 14 Oct 2026Published 14 Sept 2026
  63. Commodity Futures Trading Commission v. Johnson, No. 26-4281 (9th Cir.): Defendants-Appellants' reply to Federal Plaintiffs' response to motion for summary disposition (Dkt. 30.1, 1 October 2026)

    United States Court of Appeals for the Ninth Circuit (PACER record mirrored by CourtListener)

    Tier 2Accessed 14 Oct 2026Published 1 Oct 2026
  64. KalshiEX, LLC v. Assad, No. 25-7516 (9th Cir. 28 August 2026), opinion

    United States Court of Appeals for the Ninth Circuit

    Tier 1Accessed 14 Oct 2026Published 28 Aug 2026
  65. Arizona issues cease-and-desist orders to five online gambling sites

    KOLD News 13

    Tier 3Accessed 21 Oct 2026Published 10 Jul 2026

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This page is industry reference information and not legal advice.

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