License Name
Arizona Event Wagering Operator License
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Issuing Country/Region
USA (Arizona)
Regulatory Body
Arizona Department of Gaming (ADG)
Types of Regulated Games
Sports betting (event wagering, online and retail)
Market Coverage
Local (State of Arizona)
Regulator's Reputation
Good
Legal Entity Requirements
Applicant must partner with a professional Arizona sports franchise or a federally recognized Arizona tribe
Minimum Share Capital
Not specified in published regulatory or application guidelines
Directors and Shareholders Requirements
Disclosure of principal owners with more than 5% ownership, board members, officers, and any holding companies assisting in management or operations; key employees must also be disclosed
Anti-Money Laundering (AML) Requirements
Operators must comply with applicable federal and state AML requirements
Data Protection Requirements
Operators must ensure the security of personal data and customer information
Reporting Requirements
Monthly revenue reports required; operators must maintain records and submit appropriate tax forms for player winnings
Audit Requirements
Financial statements required (audited preferred but unaudited accepted for three years); ongoing review by the ADG
Software Certification Requirements
Gaming software, systems, and devices must be certified by an independent testing lab approved by the ADG
RNG Certification
Not explicitly required for sports betting but casino systems must be certified by independent labs
Payment System Requirements
Use of systems approved by the ADG; all payment solutions must comply with U.S. financial laws
Server Location Requirements
Not publicly specified
Domain Name Requirements
No specific restrictions listed; operators must offer services under authorized brands
Language Support Requirements
English required as the official state language
Currency Support Requirements
U.S. Dollar (USD)
Legal Compliance Costs
Costs include licensing fees; legal fees are variable depending on applicant
Background Checks
Key employees (CEO, CFO, operations heads, major owners/partners) must pass background checks and submit fingerprints to ADG
License Scope Restrictions
Limited to sports wagering; iGaming/online casino not authorized
Jurisdictional Tax Compliance
Operators must comply with state tax reporting and federal gambling taxes (W-2G, 1099 issued for eligible winnings)
Player Data Storage Requirements
Operators must secure player data and follow state/federal data standards
Cross-Border Operations
Restricted to wagers placed physically within Arizona state lines (geolocation tech required)
License Application Transparency
Public criteria and ranking system used when licenses are oversubscribed
Regulatory Contact Point
Arizona Department of Gaming
Compliance Officer Requirement
Applicants must name key compliance contacts and responsible officers
Local Partnership Requirements
Mandated partnership with a qualified Arizona sports franchise or tribe
Legal Dispute Resolution
Subject to state law and the terms of the regulatory framework
License Transferability
Not specified in published guidelines
Sub-Licensing Rules
Not allowed
License Cost
$100,000 application fee; $750,000 initial license cost
Annual Fees
$150,000 annual renewal fee
Income Taxes
10% tax rate on gross online event wagering revenue; 8% for retail/on-premises
Player Winnings Taxes
Operators required to issue IRS forms (W-2G/1099) for reportable winnings
Financial Guarantees
Not specified in summary regulations; may be required under detailed application guidelines
Liquidity Requirements
Not specified in public sources
Financial Reporting Requirements
Monthly reports; annual or periodic reviews may be requested
Application Processing Time
Application windows are announced (12 days in July 2024); processing may vary but generally several weeks to months
Required Documents
Preliminary application, ownership disclosure, financial statements (three years), principal/fingerprint forms, partnership agreements
Business Plan Requirements
Detailed operational plans including financials and management structure required
Internal Policy Requirements
Internal controls addressing AML, responsible gaming, and data security mandatory
Testing Requirements
Systems and platforms must be tested/certified by an independent lab before launch
Certification Requirements
Third-party system certification by approved labs
Staff Qualifications
Key management must have disclosed experience and pass background checks
Physical Office Requirements
Not specified in published sources
Local Representative Requirements
Not specified, but a compliance contact within Arizona is standard
Marketing Restrictions
Advertising must comply with Arizona laws and responsible gaming standards
Responsible Gaming Measures
Mandatory self-exclusion programs and responsible gaming tools required
Self-Exclusion System
Statewide self-exclusion system available for event wagering
Age Verification Procedures
Players must be at least 21; robust KYC required at registration
KYC Procedures
Full identity and age/National ID verification required
Customer Support Standards
Support in English required; responsible gaming contacts must be provided
Complaint Handling Procedures
Operators must maintain a procedure for resolving player complaints and disputes
Player Funds Protection
Requirements not detailed in summary, but operators must comply with state/federal standards
Payout Timelines
Not specified in state law; operators generally required to pay promptly per terms
Bonus and Promotion Regulations
Offers must be clear, non-misleading, and comply with advertising rules
Permitted Games List
Sports betting; no casino or digital gaming slots
Betting Limits
No explicit statutory maximums; operator and ADG-set as per platform and responsible gaming standards
RTP Requirements
Not applicable for sports betting; only for casino games
Jackpot Regulations
Not applicable to sports wagering
Live Game Requirements
Not specified; live in-game betting permitted
Mobile App Compliance
Mobile platforms must meet geolocation, security, and testing requirements
Affiliate Program Rules
Subject to ADG approval; affiliates must comply with all local advertising and gaming laws
Security Standards
Independent certification of systems required; gaming devices and platforms must meet ADG-accepted standards
Encryption Requirements
SSL/TLS required for sensitive data transmission
Backup Requirements
Not specifically detailed, standard industry practices apply
Monitoring Systems
Operators must maintain monitoring and fraud-prevention systems
Operation Logging
System logging/audit trails required for regulatory review
Anti-Fraud Systems
Required per technical certification
API Integration Standards
Must comply with ADG security and data protocols
Hosting Requirements
Not detailed in summary sources
CDN Usage
Not specified
Scalability Requirements
Not specified
Uptime Requirements
Not specified
Technical Support Availability
Not specified
License Duration
Annual (renewal every 12 months)
Renewal Procedure
$150,000 annual renewal fee, renewal application via ADG Connect portal
Penalties for Non-Compliance
Fines, suspension, or revocation for violations
Ownership Change Rules
Principal owners (5%+) must be disclosed; notification required for significant changes
Mergers and Acquisitions Rules
Not specified in summary
Subcontractor Regulations
Must disclose management/service providers and key partners
Branding Requirements
No requirements specified
Intellectual Property Protection
Not detailed, but must comply with state and federal IP law
Dispute Arbitration
Not specified in summary
Insurance Requirements
Not specified in regulations summary
Charity Contributions
Not specified
Staff Training Requirements
Not specified
Innovation Support
Not specified
Sustainability Initiatives
Not specified
Accessibility Standards
Not specified
Multilingual Support
Not mandated; English required
Cryptocurrency Support
Not allowed under federal/state law (USD only)
Esports Betting Regulations
Permitted under sports betting license unless otherwise restricted
Fantasy Sports Regulations
Separate licensing structure and application
Official Address
100 N. 15th Avenue, Suite 202, Phoenix, AZ 85007
Postal Address
100 N. 15th Avenue, Suite 202, Phoenix, AZ 85007
Online Application Portal
https://adgconnect.az.gov
Work Hours
Monday – Friday, 8 a.m. – 5 p.m. (Arizona Time)
Emergency Contact
Not specified
Regional Offices
Not specified
Technical Support
Media Contact
Facebook URL
https://www.facebook.com/azgaming
Twitter/X URL
https://twitter.com/azgaming
YouTube URL
https://www.youtube.com/watch?v=eeQU1GGh8RA
Departments
Compliance & Enforcement, Audit, Games & Systems Compliance, Investigations & Inspections, Division of Problem Gambling, Licensing
FAQ Question 1
What is Arizona Event Wagering Operator License?
FAQ Answer 1
The Arizona Event Wagering Operator License authorizes approved applicants to operate online and retail sports betting, partnered with a sports team or a tribe in the state. It governs all sports betting in Arizona under the oversight of the Arizona Department of Gaming
FAQ Question 2
Which jurisdiction issues Arizona Event Wagering Operator License?
FAQ Answer 2
The Arizona Department of Gaming (ADG) issues the Event Wagering Operator License, authorizing regulated sports betting within Arizona
FAQ Question 3
What is the cost of obtaining Arizona Event Wagering Operator License?
FAQ Answer 3
The fee structure is: $100,000 application fee, $750,000 initial license fee, and $150,000 annual renewal fee
FAQ Question 4
What are the main requirements for Arizona Event Wagering Operator License?
FAQ Answer 4
Applicants must partner with a qualified sports franchise or Arizona tribe, disclose principal owners, submit a detailed application with financials, pass security and background checks, and comply with state and federal gaming, AML, and tax requirements