Bet365 and Fanatics Rumored to Enter Arizona Market with New Licenses

Bet365 and Fanatics are rumored to be considering entering the Arizona sports betting market as the state prepares to award three new licenses. 

Arizona Department of Gaming Set to Expand Sports Betting with Three New Licenses

The Arizona Department of Gaming (ADG) is preparing to issue three new sports betting licenses to expand the state’s sports gambling industry. One license will be allocated to an Arizona tribe, and two licenses will be granted to professional sports teams, with a cautious approach taken by the regulator to ensure the best applicants are selected. The state already has 17 online sportsbooks, but the reasonable licensing fees are expected to attract interest from potential operators.

Speculation suggests the Ak-Chin Indian Nation may be the recipient of the tribal permit, having lost its online sports wagering partner when Fubo closed its sportsbook operation last year. 

Among the potential contenders for the remaining licenses are Bet365, a major sportsbook operator in international markets, and Fanatics, an up-and-coming player in the industry. Bet365, already operational in Colorado, New Jersey, Ohio, Iowa and with market access in Pennsylvania, is seen as having the resources and capabilities to thrive in the US sports wagering market. Similarly, Fanatics has expressed its intentions to expand its sports betting presence.

Fanatics recently secured the takeover of PointsBet’s US-facing business for $225 million after facing tough competition from DraftKings, who initially offered $195 million. With overwhelming support from 98% of PointsBet’s shareholders, the deal allows Fanatics to expand its presence in the competitive US sports betting market.

Arizona’s Sports Betting Market Dominated by Big Players, Yet Remains Attractive for Newcomers

However, the Arizona market presents some challenges. Currently, it is dominated by three major players: FanDuel, DraftKings, and BetMGM, controlling a significant 84% of the mobile wagering market. This dominance acts as a barrier to entry for potential newcomers.

Despite the challenges, Arizona remains an attractive market for ambitious sportsbook operators, and there are similarities with Colorado, which has been successful in sports betting. Both states have comparable populations and regulatory landscapes, making them appealing targets for expansion.

For example, in September 2022, sportsbooks in Arizona reported a significant increase in betting handle, reaching almost $540 million, an 84.7% increase compared to the same period last year.

The competition for the remaining licenses in Arizona will be fierce, and operators need to carefully assess their chances of success in the mature Arizona market. Bet365, with its strong financial backing, and Fanatics, eager to grow its sports wagering footprint, are seen as logical candidates to enter the state. However, neither company has officially confirmed their application for permits.