The Arizona Department of Gaming (ADG) will begin accepting applications for new limited event wagering licenses on August 13, which allow operators to partner with a racetrack or additional wagering facility that maintain a permit issued by the Division of Racing.
According to the Arizona regulator, limited event wagering operations will offer residents retail-style sports betting while at a racetrack or additional wagering facility, with 8% of all revenue produced by the vertical is subject to privilege fees.
“Applicants for limited event wagering operator licenses will undergo a thorough licensing evaluation process structured to ensure consumer protection,” Arizona Department of Certification and Licensing Assistant Director Cliff Holden said.
“We look forward to receiving new applications for limited event wagering within the state of Arizona.”
Operators looking to secure a limited event wagering license in Arizona must submit completed applications by August 27, which will then be evaluated “in accordance with the established criteria set forth in applicable rules and statutes.”
The ADG confirmed 10 licenses will be issued at 10 specific locations, although it remains to be seen if prediction market operators such as Kalshi and Polymarket look to apply for a limited event wagering license.
On July 10, Arizona Governor Katie Hobbs issued a new executive order to counteract potential insider trading efforts from government employees in the state, following the approval for a temporary restraining order from the Commodity Futures Trading Commission (CFTC) in April.
While the approval did not grant prediction market operators authorization to begin conducting business in Arizona, the decision did represent a backtrack from state lawmakers and allowed Kalshi to avoid legal action.
Within the executive order, Hobbs prohibits all Arizona executive branch employees from using nonpublic information to either personally or assist others in profiting off prediction markets, as well as avoid losses on event contract trading.
Arizona’s decision to introduce limited event wagering license applications also follows North Carolina’s recognition of the CFTC’s “exclusive” authority over prediction market operators on July 7.
Within a provision included in the state budget, a 6% tax will be imposed on the net trading revenue of federally regulated prediction market operators, significantly lower than the 23% currently enforced upon the gross wagering revenue of sports betting entities.
The ADG was granted a 20% increase in problem gambling spending for FY 2027 to $4m on June 30, allowing for additional investments in prevention, education, treatment and recovery services
