AZ Governor Proposes to Raise Sports Betting Tax Rate from 10% to 45%
January 23, 2026
In Arizona, the Governor has proposed increasing the sports betting tax rate from 10% to 45% in her budget proposal announced last week.
Though not all are specific to the sports tax increase, there is already sweeping opposition to her budget in its entirety from the Republican-led legislature. The Governor is a Democrat while Republicans control both the House and Senate.
Though the budget process is in the very early stages, ultimately some increase of the tax rate is expected in a final product. The deadline for state to finalize budget is June 30. iDEA is monitoring the situation and coordinating with stakeholders. We will engage as we have in other states to successfully hold back large tax increases.