DraftKings Arizona — Legal, But Hobbs Wants 45% Tax

DraftKings Arizona: Legal Since 2021, Licensed Through a Golf Course

DraftKings Arizona has run as a fully licensed sportsbook since September 9, 2021, the same week the state’s market opened statewide. What most bettors never notice is whose name backs that license: not a tribe, not a stadium, but TPC Scottsdale, the PGA Tour venue that hosts the WM Phoenix Open. Five years in, DraftKings is also one of only three operators Arizona’s governor has singled out by name for a proposed tax hike.

Legal status in Arizona

Arizona legalized online and retail sports wagering through HB 2772, signed by Governor Doug Ducey on April 15, 2021, alongside an amended tribal-state gaming compact. The law authorizes up to 20 event wagering licenses, split evenly: ten reserved for the state’s federally recognized tribes and ten for professional sports franchises, racetracks, and golf venues that host PGA Tour or similar events. DraftKings holds one of the second kind, partnered with TPC Scottsdale rather than a tribe or a team. The Arizona Department of Gaming licenses and audits every operator, taxing online revenue at 10% and retail at 8%. The same bill legalized paid daily fantasy sports contests, so DraftKings’ DFS product runs in Arizona too. Arizona has not legalized online casino play at all — no operator offers one, DraftKings included.

State gambling authority: Arizona Department of Gaming

DraftKings Arizona has been live since September 9, 2021, and the sportsbook itself is unremarkable in the best way — licensed, geofenced, audited. What is worth knowing is whose name is actually on that license. It is not a tribe, and it is not a stadium. It is TPC Scottsdale, the golf course that hosts the WM Phoenix Open every February.

Is DraftKings Legal in Arizona? Yes, Through a PGA Tour Venue

Governor Doug Ducey signed HB 2772 on April 15, 2021, legalizing online and retail sports wagering alongside an amended tribal-state gaming compact. The law authorized up to 20 event wagering licenses, split into two equal tracks: ten for the state’s federally recognized tribes, and ten for professional sports franchises, racetracks, and golf venues that host events like the PGA Tour. DraftKings picked the second track, partnering with TPC Scottsdale rather than a tribe. That is a different structure than Michigan, where DraftKings runs through the Bay Mills Indian Community, or Virginia, where it holds a standalone permit and needs no partner at all. Arizona simply built a third lane, and DraftKings used it.

The license holder, plainly: TPC Scottsdale is a golf course, not a casino or a sports team. Its role is identical to Bay Mills’ in Michigan on paper — hold the license, take a cut — but the underlying business has nothing to do with gambling the rest of the year.

Is DraftKings Legit in Arizona If the Governor Is Naming It in a Tax Fight?

In February 2026, Governor Katie Hobbs proposed raising Arizona’s sports betting tax from 10% to 45% — but only for operators pulling in $75 million or more in monthly revenue. Three sportsbooks crossed that line in November 2025: BetMGM, DraftKings, and FanDuel. Getting named in a budget proposal like that is not a compliance problem; it is what happens when a regulator has five years of granular revenue data on an operator and that operator is winning. Smaller operators, including the tribal-licensed ones, would stay at the current 10% cap either way.

Does DraftKings Have Casino or DFS in Arizona?

DFS, yes — HB 2772 legalized paid daily fantasy contests in the same bill that legalized sports wagering, so DraftKings’ fantasy product runs in Arizona alongside the sportsbook. Online casino, no — and that is not a DraftKings-specific gap. Arizona has never legalized online casino gaming for any operator, so there is no DraftKings Casino app to open here regardless of brand loyalty.

How Safe Is DraftKings for Arizona Players?

Standard regulated-market protections apply: Arizona Department of Gaming licensing, geolocation that confirms an in-state bettor, identity verification at signup, and an agency that has collected roughly $193.7 million in event wagering privilege fees from operators statewide since the market opened in 2021. Handle keeps climbing, too — January 2026 set a statewide record at $967.1 million, and June 2026 still topped $663.9 million, a 22.3% jump over the prior year. Regulators do not let volume like that run through an operator they distrust.

Market churn to know about: Arizona has lost several operators over the years — Betfred, WynnBET, Unibet, Betway, and most recently Sporttrade, which exited in 2026 less than a year after launching. The Department of Gaming reopened event wagering license applications from June 26 to July 10, 2026, for up to six new licenses. None of that turnover involves DraftKings, which has held its TPC Scottsdale-backed license continuously since 2021.

Bottom line: DraftKings is legal, licensed, and apparently thriving in Arizona, running through one of the more unusual license structures in its national footprint — a golf course, not a tribe or a stadium. The open question isn’t whether DraftKings belongs here; it is whether Arizona’s legislature follows its governor toward a 45% tax on the operators, DraftKings among them, that are winning the most. Treat any deposit as entertainment spending, not income. 21+ only, and if it stops feeling like entertainment, Arizona’s problem gambling helpline is 1-800-NEXT-STEP.

DraftKings Arizona — Frequently Asked Questions

Is DraftKings legal in Arizona?

Yes. HB 2772, signed by Governor Doug Ducey on April 15, 2021, legalized online and retail sports wagering, and DraftKings has operated continuously since Arizona’s market opened on September 9, 2021, under an Arizona Department of Gaming license.

Why does DraftKings’ Arizona license go through a golf course?

Because of how Arizona split its 20 available licenses: ten went to tribes, ten to professional sports franchises and venues, including golf courses that host PGA Tour events. DraftKings partnered with TPC Scottsdale, home of the WM Phoenix Open, for its Arizona event wagering license — a different structure than Michigan, where DraftKings licenses through a tribe, or Virginia, where it holds a standalone permit with no partner at all.

Is DraftKings legit in Arizona given the tax fight over it?

The tax dispute is about revenue, not legitimacy. Governor Katie Hobbs’ February 2026 budget proposed raising the tax rate on Arizona’s biggest sportsbooks from 10% to 45%, but only for operators clearing $75 million a month — a threshold BetMGM, DraftKings, and FanDuel each crossed in November 2025. Being named as one of the three biggest operators in the state is a sign of market share, not a red flag on DraftKings’ license.

Is DraftKings safe to use in Arizona?

As safe as regulated Arizona betting gets: Department of Gaming licensing, mandatory geolocation confirming an in-state bettor, identity verification at signup, and a regulator that has collected roughly $193.7 million in event wagering privilege fees from operators statewide since 2021 — the kind of ongoing oversight a bad actor doesn’t survive five years under.

Does DraftKings have a casino app in Arizona?

No. Arizona has never legalized online casino gaming for any operator — not just DraftKings. The state’s law covers sports wagering and daily fantasy sports only, so there is no DraftKings Casino product to open here the way there is in Michigan or New Jersey.

Could Arizona actually raise DraftKings’ tax rate to 45%?

It is proposed, not passed. Hobbs’ office estimates the higher rate on big operators could raise $150 million a year, but the plan needs a Republican-controlled legislature that has not embraced it. As of August 2026, DraftKings is still taxed at the standard 10% online rate in Arizona; nothing has changed yet.