Bet365 and Fanatics are preparing to enter the Arizona market with new betting licenses
Gaming companies Bet365 and Fanatics are considering entering the sports betting market in Arizona as the state prepares to issue three new betting licenses.
The Arizona Department of Gaming (ADG) is preparing to issue three new sports betting licenses to expand the state’s betting industry.
One license will be allocated to an Arizona tribe and two licenses will be granted to professional gambling companies, with the regulator taking a cautious approach to selecting the best applicants. There are already 17 online bookmakers in the state, but reasonable license fees are expected to attract interest from potential operators.
Potential bidders for the remaining licenses include Bet365, a major betting operator in international markets, and Fanatics, an up-and-coming industry player that started betting operations in early 2023.
Fanatics acquired the U.S. business of Australian bookmaker PointsBet for $225 million in June.
The Arizona market is currently dominated by three major players, FanDuel, DraftKings and BetMGM, controlling 84% of the online betting market. This dominance serves as a barrier to entry for potential newcomers.
Despite the challenges, Arizona remains an attractive market for ambitious betting operators, and there are similarities with Colorado, where bookmakers have done very well. Both states have comparable populations and a gentle regulatory framework make them attractive targets for expansion.
Arizona bookmakers reported a significant increase in betting volume in September 2022, reaching nearly $540 million, an 84.7% increase over the same period last year.