Is Sports Betting Legal in Arizona? 2026 Laws, Licensed Apps, Taxes and the Kalshi Fight

Yes, sports betting is legal in Arizona for adults 21 and older, on licensed mobile apps and at a small number of in-person sportsbooks. The Arizona Department of Gaming licenses and oversees it. Online casinos and online poker are not legal. Offshore sportsbooks are not licensed in Arizona, and the state has gone after unlicensed operators in 2026.

Why this guide is different: Most Arizona pages list apps and stop. We went to the state’s own monthly report and worked out where each $100 bet in Arizona actually went in July 2026. We also ran the 2026 tax math on a winning season, and we explain in plain words why betting offshore from Arizona is a bigger legal risk than many sites admit.

Is Sports Betting Legal in Arizona Right Now?

Yes. Arizona has legal, regulated sports betting on phones and in person. You must be 21 or older. You must also be inside Arizona when you place the bet.

The Arizona Department of Gaming is the state agency in charge. It licenses sportsbooks and fantasy sports apps, collects their fees and runs the state’s problem gambling programs. Its website is gaming.az.gov.

Here’s the short version of what is and isn’t allowed:

The ADG says the legal gambling age in Arizona is 21. The Arizona Lottery’s FAQ also says you must be 21 to buy or cash a ticket. If you live near the state line, our Arizona casino and sportsbook page covers options by region.

How Did Arizona Legalize Sports Betting?

Gov. Doug Ducey signed House Bill 2772 on April 15, 2021. The same day, he and Arizona’s tribes signed amended gaming compacts. A gaming compact is a contract between a tribe and the state that sets the rules for gambling on tribal land.

The two deals were tied together. HB 2772 says the new betting options only take effect if the tribes sign the 2021 compact amendments, according to the Arizona Senate’s fact sheet on the bill. Under the package, tribes got new casino table games and half of the full sports betting licenses.

Legal Sports Report says Arizona sportsbooks launched on Sept. 9, 2021. We could not find that exact date on an ADG page, so we credit it to Legal Sports Report.

Who Can Get a Sportsbook License?

The law allows up to 20 full event wagering licenses. “Event wagering” is Arizona’s legal term for sports betting. The ADG’s general information page splits them like this:

• 10 licenses for Arizona tribes.
• 10 licenses for sports organizations: owners of Arizona pro sports teams, the operator of a venue that hosts a yearly PGA Tour event, or the promoter of a NASCAR national touring race in Arizona.
• 10 “limited” licenses: these are for horse racetracks and off-track betting sites. They allow in-person betting only.

Each license holder can pick a partner company to run the app. That’s why most Arizona apps are big national brands paired with a team or a tribe. For example, the ADG lists a sportsbook partnered with the Phoenix Suns and another partnered with the Tohono O’odham Nation.

Who Is Licensed Today?

On October 16, 2026, the ADG’s official list showed 15 sportsbook partner listings. Of those, the ADG marked one as “not yet launched” and two as having “ceased operations in Arizona.” That leaves 12 live sportsbook apps.

The one not yet live is Circa Sports. The ADG announced on Aug. 3, 2026, that it allocated a license to Circa Sports Arizona LLC, as the partner for the San Juan Southern Paiute Tribe. Legal Sports Report says reporting points to an early 2027 launch. That launch date is not confirmed by the ADG.

Before you download any betting app, check it against the ADG’s Approved Operators list. If an app isn’t on that list, it isn’t licensed in Arizona.

Where Can You Bet in Person?

In-person betting exists, but it’s tiny. ADG’s July 2026 report shows only three operators took any retail bets that month. Retail bets totaled about $1.19 million. Mobile bets totaled about $598.3 million.

More in-person spots may come. On Sept. 15, 2026, the ADG announced new limited event wagering licenses. Its list now shows nine bars, grills and the Turf Paradise racetrack partnered with Caesars. All nine were marked “not yet launched” on October 16, 2026.

Tribes can also run sportsbooks inside their own casinos. That betting is governed by each tribe’s compact, not by a state license, according to the HB 2772 fact sheet.

The Ground Rules for Every Bet

• Age 21: Letting someone under 21 bet is a crime for a licensed operator under HB 2772.
• Location: Apps use geolocation, meaning your phone’s location, to confirm you are in Arizona. Licensed state apps also can’t take a bet from someone standing on tribal land, according to the HB 2772 fact sheet.
• No high school sports: HB 2772 bans bets on high school sports.
• No college player props: A prop bet is a bet on one player’s stats, like passing yards. Legal Sports Report says Arizona does not allow prop bets on college teams or individual college athletes. The ADG’s approved-wager catalog would confirm this, but it would not load for us. Treat this as unverified by the ADG.
• No election betting: The Arizona Attorney General’s office says state law bans betting on elections outright.
• No insiders: Players, coaches and referees can’t bet on their own sport, according to Legal Sports Report and the HB 2772 fact sheet.

New to the basics? Our Sports Betting 101 guide explains odds, bet types and how to read a betting line.

How Much Does Arizona Tax Sportsbooks?

Arizona charges sportsbooks a “privilege fee.” It works like a tax on what the books keep. Arizona Administrative Code R19-4-112 sets it at:

• 8% of adjusted gross receipts for in-person (retail) betting
• 10% of adjusted gross receipts for mobile betting

“Adjusted gross receipts” means the money bettors lost to the book, minus a few allowed deductions. The biggest deduction is free bets and promo credits. The law caps the fee at 10%, according to Arizona Revised Statutes Section 5-1318.

Where does the money go? Under Section 5-1318, 90% of the event wagering fund moves to the state’s general fund each month. The ADG can spend up to 10% on regulating betting. Up to $500,000 of that each year can support problem gambling programs.

In January 2026, Gov. Katie Hobbs proposed raising the fee to 45% for the biggest sportsbooks, Arizona Mirror reported. It would have applied only to operators earning $75 million or more a month. Tribal sportsbooks and smaller operators would have stayed at the 10% cap. That idea did not survive. Arizona Capitol Times reported on June 13, 2026, that the signed budget dropped the new sports betting fee structure.

Our Analysis: Where $100 Bet in Arizona Went in July 2026

We took the ADG’s July 2026 Event Wagering Revenue Report and broke it down per $100 bet. “Handle” means the total amount bet. “Hold” means the share of handle the sportsbooks kept.

Three things stand out to us:

• Bettors got most of it back, but not all. About $88.84 of every $100 came back as winnings. The other $11 or so stayed with the books before promos.
• Promos ate about a quarter of the books’ win. Free bets and promo credits equaled about 26% of what the books kept before promos. Those credits are deducted before the state takes its share.
• The state’s share is small. Arizona collected about 81 cents per $100 bet in July. Since betting began, the report shows $198.9 million in fees on $36.56 billion in bets. That’s about 54 cents per $100.

Editor’s Note on method: All figures come from ADG’s July 2026 report, which the ADG labels unaudited. We divided each line by total handle and rounded. One month can swing a lot based on game results. July is also a slow sports month, so treat these numbers as a snapshot, not a yearly average.

Our take: The “per $100” view shows why the 45% fee fight will likely return. The state takes well under 1% of what Arizonans bet. Supporters of a higher fee will point to that. Opponents will point to the fact that most of the money goes back to bettors. Either way, the fee is charged on what books keep, not on what you bet.

What Gambling Is Not Legal in Arizona?

Arizona law starts from a simple rule. Gambling is illegal unless a law allows it, according to the ADG’s July 10, 2026 enforcement release and Arizona Revised Statutes Section 13-3302. Here’s what is not allowed:

• Online casino games: The ADG’s home page says online casinos, often called “iGaming,” are not legal in Arizona. It warns that fake sites falsely claim real Arizona casinos have launched online.
• Online poker: The ADG said in July 2026 that online poker is illegal in Arizona.
• Unlicensed sportsbooks: Any betting site not on the ADG list, including offshore books.
• Election betting: Banned outright, according to the Attorney General’s office.
• Bets on high school sports: Banned under HB 2772.
• Gambling under 21: The legal age for all gambling in Arizona is 21.
• Peer-to-peer betting where the site takes a cut: The ADG says the platform can’t profit from bets between players.
• Home games where someone profits: More on this below.

As of Oct. 15, 2026, AZCentral reported there were no active bills or proposals to legalize online casinos in Arizona.

What Other Gambling Is Legal in Arizona?

Tribal Casinos

Every federally recognized tribe in Arizona has a gaming compact with the state, according to the ADG. That’s 22 tribes. The 2021 amended compacts added new table games such as craps, roulette and baccarat.

Tribal casinos also pay into a state fund. The ADG reported $47.59 million in tribal gaming contributions for the first quarter of fiscal year 2027, in a Sept. 18, 2026 release.

The Arizona Lottery

The Arizona Lottery sells draw games and scratchers. You must be 21 or older to buy or cash a ticket, according to the Lottery’s FAQ. HB 2772 also let the Lottery run one electronic keno game and one mobile draw game, under strict limits.

Daily Fantasy Sports

Daily fantasy sports (DFS) are legal and licensed by the ADG. DFS means paying to enter a fantasy contest that lasts a day or a week instead of a full season. On Oct. 16, 2026, the ADG listed 16 fantasy operators, with one marked as having ceased operations in Arizona.

Horse Racing

Betting on horse races is legal through pari-mutuel pools. In a pari-mutuel pool, bettors bet against each other, and the track takes a cut. The ADG’s Division of Racing issues the permits.

Sweepstakes Casinos

This one needs care. The ADG’s “Sweepstakes in Arizona” flyer says only certain free-to-play games are legal. To stay legal, a game must let you play free in the same way and with the same odds as a paying player. It can’t make the free route harder.

The ADG has acted on this. Legal Sports Report says the ADG sent cease-and-desist orders to more than 17 operators across four waves in 2025. A cease-and-desist order is a formal demand to stop. If a “sweeps” site makes free play hard or limited, the ADG may view it as illegal gambling.

Home Poker Games

Arizona allows “social gambling,” as defined in Section 13-3301. All players must be 21 or older and compete on equal terms. No one can profit except through their own winnings. That means no rake, no house cut, and no host fee. If the host takes a cut, it stops being social gambling.

What’s Happening With Prediction Markets in Arizona?

Prediction markets let you buy “event contracts,” which pay out if something happens. They’re regulated by a federal agency, the Commodity Futures Trading Commission (CFTC). Many now offer contracts on sports games. Arizona says that’s illegal sports betting without a state license.

Here’s the timeline, based on official releases and court coverage:

1. March 12, 2026: Kalshi sued Arizona in federal court to stop the state from enforcing its gambling laws, Arizona Capitol Times reported.
2. March 17, 2026: Attorney General Kris Mayes filed a 20-count criminal case against Kalshi’s companies. Four counts were for election wagering, including bets on the 2026 Arizona governor’s race, her office said.
3. May 5, 2026: U.S. District Judge Michael Liburdi blocked the state’s case. He ruled that federal law likely overrides state gambling laws for markets the CFTC regulates, Courthouse News reported.
4. Aug. 28, 2026: In a separate Nevada case, a Ninth Circuit panel ruled the other way. It found that who wins a sporting event is not protected by the federal law Kalshi relies on. Arizona’s federal courts are also in the Ninth Circuit.
5. September 2026: Mayes asked the Ninth Circuit to lift the Arizona order. The CFTC asked the court to wait because Kalshi wants the full appeals court to rehear the Nevada case, Arizona Mirror reported on Sept. 25.

We could not confirm a ruling on Mayes’ request as of Oct. 16, 2026. For the full backstory, read our full report on Arizona’s prediction market legal fight.

Our take: The Nevada ruling gives Arizona a strong argument. If the full Ninth Circuit doesn’t reverse it, we expect Arizona’s case against Kalshi to move forward again. That could cut off sports contracts for Arizonans. Until a court decides, a prediction market is not the same as an ADG-licensed sportsbook. It does not come with Arizona’s self-exclusion list or ADG dispute help.

Are Offshore Sportsbooks Legal in Arizona?

No. Offshore sportsbooks are betting sites based outside the U.S. They operate outside U.S. licensing, and none is licensed by the Arizona Department of Gaming. Some still accept Arizona customers. That doesn’t make them legal here.

Arizona’s law is stricter on this than many people assume. Three sections of Title 13 matter:

• Section 13-3305: Running a business that accepts bets is a class 1 misdemeanor, unless the state’s betting law allows it.
• Section 13-3303: Running or financing gambling for profit, outside the legal exceptions, is “promotion of gambling,” a class 5 felony.
• Section 13-3304: Knowingly getting “any benefit from gambling” is a class 1 misdemeanor, unless the gambling is amusement or regulated gambling. The law makes an exception only for players in a legal social game.

On its face, Section 13-3304 is not limited to people who run gambling sites. Whether it would apply to an individual bettor’s offshore winnings is a legal question we can’t answer for you. We did not find reports of Arizona charging individual bettors for using offshore sites. That doesn’t make offshore betting legal, and it doesn’t tell you your personal risk. Talk to an Arizona lawyer if you need that answer.

The ADG has also gone after an offshore book directly. On July 10, 2026, it sent a cease-and-desist order to Bookmaker. The ADG said the site took bets on horse racing, casino games and sports without an Arizona license. It alleged felony promotion of gambling, illegal control of an enterprise and money laundering.

What You Give Up Offshore

• No Arizona help in a dispute: The ADG’s patron dispute process covers licensed operators. It can’t force an offshore site to pay you.
• No state self-exclusion: Arizona’s self-exclusion list doesn’t reach offshore sites.
• Withdrawal delays and limits: Offshore sites often cap withdrawals and require ID checks first. Our offshore payout speed comparison shows how much withdrawal times can vary.
• Crypto price swings: Many offshore sites favor crypto. Its value can drop between deposit and withdrawal.
• Taxes still apply: Winnings are taxable even when no tax form is issued.

For more detail, read the real risks of offshore sportsbooks. To see how Arizona compares with states that have no legal betting, use our state-by-state offshore betting and casino guide.

Our take: In states with no legal betting, offshore books fill a gap. Arizona has no such gap. It has a dozen licensed apps, a state dispute process and a self-exclusion program. The ADG is also actively enforcing against unlicensed sites. For Arizona residents, we recommend sticking with ADG-licensed apps. That’s why this guide has no offshore sign-up links.

What Protections Do Legal Arizona Bettors Get?

Betting with a licensed app comes with real safeguards. Here’s what the ADG and state law provide:

• A way to check any app: The ADG’s “Check Your Bet” tool and operator list show who is licensed.
• A dispute process: If a licensed app won’t pay or settle a bet fairly, you can file a patron dispute form with the ADG. The ADG says you should first call its Constituent Services Unit at (602) 771-4263 to confirm you are not on the self-exclusion list.
• Self-exclusion: You can ban yourself from licensed sports betting and fantasy apps, from all Arizona tribal casinos, or both. The ADG offers 1-, 5- or 10-year bans, and they cannot be canceled early. Under Section 5-1320, any prize won by someone on the list is forfeited.
• A game-fixing hotline: The ADG runs a confidential line at 833-652-0828 to report attempts to rig a bet or game.
• Problem gambling funding: State law sets aside money for help programs, and licensed operators must offer problem gambling resources, according to the ADG.

Keep your bet sizes in check too. Our bankroll management guide shows how to set a budget and stick to it.

How Are Sports Betting Winnings Taxed in Arizona?

Gambling winnings are taxable income on both your federal and Arizona returns. That’s true for licensed apps, tribal casinos, the lottery and offshore sites.

Federal Rules for 2026

• Report everything: The IRS says you must report all gambling winnings, even if you don’t get a tax form.
• Losses only help if you itemize: You can deduct gambling losses only if you itemize on Schedule A, up to the amount of your winnings, IRS Tax Topic 419 says. Itemizing means listing your deductions instead of taking the flat standard deduction.
• New 90% limit: Starting in 2026, you can deduct only 90% of your gambling losses, according to IRS Internal Revenue Bulletin 2026-19.
• Form W-2G: For sports bets, a sportsbook files a W-2G when a payout meets the reporting threshold and is at least 300 times your bet. The 2026 threshold is $2,000, according to the IRS’s 2026 W-2G instructions.
• Withholding: The book must withhold 24% for federal tax when your winnings minus your bet are over $5,000 and at least 300 times your bet.

Arizona Rules

• Flat 2.5% rate: Arizona taxes income at a flat 2.5%, according to the Arizona Department of Revenue (ADOR).
• Same starting point as federal: ADOR says Arizona residents are taxed on the income reported for federal purposes, with some changes. Your winnings flow onto your Arizona return.
• State withholding: When a payout is subject to federal withholding, Arizona now requires withholding at 2.5%, ADOR says. The 2025 Tax Corrections Act changed this from 20% of the federal amount.
• The 90% question: Gov. Hobbs signed HB 4168 on June 13, 2026, updating Arizona’s link to the federal tax code for 2026, according to a summary by Current Federal Tax Developments. Arizona itemized deductions generally follow the federal list. So the 90% limit likely carries over for Arizona itemizers. We could not find ADOR guidance that says so directly. Treat this as unverified.

Our Example: A Winning Season Can Still Cost You

Most bets are priced at -110. That means you risk $110 to win $100. Our NFL point spread guide explains how those prices work. At -110, you must win about 52.4% of your bets just to break even. That’s because the book’s fee, called the vig, is built into the price.

Say you make 100 bets of $110 each at -110. You win 53 and lose 47. To keep the math simple, we assume your other income already uses up your standard deduction. That means each extra dollar of gambling income is taxed at your top rate. We use a 12% federal bracket as the example.

Look at the left column. If you can’t deduct your losses, you owe tax on all $5,300 of winnings, not on your $130 profit. Under our assumptions, the added tax is far bigger than the profit. A small winning season can turn into a loss after taxes. Even if you itemize, the 90% limit means you pay some tax on money you didn’t actually make.

Editor’s Note on method: We counted each winning bet’s profit as winnings and each losing stake as a loss. That’s a simple way to track it. Your tax preparer may group bets by session instead, which can change the totals. The 12% bracket and the standard deduction assumption are just examples. Your real result depends on your total income, filing status and other deductions. This is general information, not tax advice.

Our advice: Keep a log of every bet, deposit and withdrawal. Download your app’s yearly win/loss statement. If you bet a lot, ask a tax pro whether itemizing makes sense for you. Our state sports betting tax table shows how Arizona compares with other states.

What Arizona Gambling Changes Should You Watch?

Arizona’s 2026 legislative session is over. Here’s what we’re watching next, in rough order:

1. Nov. 3, 2026 election: Attorney General Kris Mayes faces Republican Warren Petersen, according to Ballotpedia. The winner will decide how hard Arizona keeps pushing its case against Kalshi.
2. The Ninth Circuit: A ruling on Kalshi’s rehearing request in the Nevada case, and on Mayes’ request in the Arizona case, could reopen the state’s prosecution.
3. New sportsbook launches: Circa Sports holds an Arizona license but had not launched as of Oct. 16, 2026. Nine Caesars-partnered retail spots were also approved but not yet live.
4. January 2027 session: Watch for a return of the 45% fee plan for the biggest sportsbooks. It was dropped from the 2026 budget, not ruled out.
5. Federal bills: Congress has bills that would ban sports contracts on prediction markets, including the Senate’s Prediction Markets Are Gambling Act (S.4160). None had become law as of Oct. 16, 2026.
6. Online casinos: No bill to legalize them was active as of mid-October 2026. Tribal casinos have a big stake in that question, so any change would likely involve the compacts.

We track each state’s bills on our state-by-state gambling news page. We’ll update this guide when Arizona’s rules change.

Key Dates in Arizona Sports Betting

Where Can Arizonans Get Help With Gambling?

Arizona’s Division of Problem Gambling runs a free, confidential 24-hour helpline. Call 1-800-NEXT-STEP (1-800-639-8783) or text NEXTSTEP to 53342. Both are listed on the Division’s official site, problemgambling.az.gov.

The Division also helps pay for counseling through its Treatment Assistance Program. In August 2026, it announced expanded access to free financial counseling for people affected by problem gambling.

If you want a hard stop, use the ADG’s self-exclusion program. You’ll need a notarized form and a current color photo. Once it’s processed, licensed apps and tribal casinos must keep you out for the full term you pick.

You can also call the National Problem Gambling Helpline at 1-800-MY-RESET, run by the National Council on Problem Gambling.

References

• Arizona Department of Gaming, Approved Operators and Retail Locations (checked Oct. 16, 2026):.
• Arizona Department of Gaming, Event Wagering General Information.
• Arizona Department of Gaming, Event Wagering Application Period and Circa Sports allocation (Aug. 3, 2026): gaming.az.gov
• Arizona Department of Gaming, Event Wagering Revenue Report, July 2026 (unaudited): gaming.az.gov
• Arizona Department of Gaming, cease-and-desist release (July 10, 2026): gaming.az.gov
• Arizona Department of Gaming, Sweepstakes in Arizona flyer: gaming.az.gov
• Arizona Department of Gaming, Self-Exclusion: gaming.az.gov/exclude
• Arizona Department of Gaming, Tribal Gaming History: gaming.az.gov
• Arizona Department of Gaming, Media Room: gaming.az.gov
• Arizona Division of Problem Gambling: problemgambling.az.gov
• Arizona Revised Statutes 5-1318 (fees; event wagering fund): azleg.gov
• Arizona Revised Statutes 5-1320 (problem gambling; self-exclusion): azleg.gov
• Arizona Revised Statutes 13-3301 (definitions): azleg.gov
• Arizona Revised Statutes 13-3303 (promotion of gambling): azleg.gov
• Arizona Revised Statutes 13-3304 (benefiting from gambling): azleg.gov
• Arizona Revised Statutes 13-3305 (betting and wagering): azleg.gov
• Arizona Administrative Code R19-4-112 (privilege fee): law.cornell.edu
• Arizona Senate fact sheet, HB 2772 as enacted (2021): azleg.gov
• Arizona Attorney General, “Attorney General Mayes Charges Kalshi With Illegal Gambling Operation, Election Wagering in Arizona” (March 17, 2026): azag.gov
• Arizona Department of Revenue, Withholding Highlights: azdor.gov
• Arizona Department of Revenue, Individual Income Tax Highlights: azdor.gov
• Arizona Lottery, Frequently Asked Questions: arizonalottery.com
• IRS, Tax Topic 419, Gambling Income and Losses: irs.gov
• IRS, Instructions for Forms W-2G and 5754 (01/2026): irs.gov
• IRS, Internal Revenue Bulletin 2026-19 (wagering loss limitation): irs.gov
• Arizona Mirror, Hobbs budget and sports betting fee proposal (Jan. 16, 2026): azmirror.com
• Arizona Mirror, Mayes asks Ninth Circuit to revive Kalshi case (Sept. 25, 2026): azmirror.com
• Arizona Capitol Times, “Hobbs signs $18.3B bipartisan budget” (June 13, 2026): azcapitoltimes.com
• Arizona Capitol Times, Kalshi lawsuit against Arizona (March 16, 2026): azcapitoltimes.com
• Courthouse News, “Judge shields Kalshi election wagering in Arizona” (May 5, 2026): courthousenews.com

Gambling involves risk. Only bet what you can afford to lose. You must be 21 or older and physically in Arizona to bet with a licensed Arizona sportsbook. If you or someone you know has a gambling problem, call Arizona’s 24-hour helpline at 1-800-NEXT-STEP (1-800-639-8783) or text NEXTSTEP to 53342. You can also reach the National Problem Gambling Helpline at 1-800-MY-RESET.