Why State-Regulated Sports Betting Still Makes Sense to Circa’s Derek Stevens

Circa Sports just added its seventh licensed sports betting market, and CEO Derek Stevens is using the moment to make a bigger point: state-regulated sportsbooks still have a future, even as federally regulated prediction markets push into sports wagering nationwide. The Arizona Department of Gaming allocated an online sports betting license to Circa Sports Arizona LLC as a designee for the San Juan Southern Paiute Tribe, with the allocation effective July 27, 2026.

The move comes at an interesting moment for the industry. Prediction market platforms regulated by the CFTC now offer sports-adjacent wagering in states where traditional sportsbooks can’t operate, raising an obvious question for any operator eyeing expansion: why bother with a state-by-state gambling license and tax structure when a federal framework can reach nearly the entire country at once? Stevens’ answer, delivered in an interview with Covers, is that the regulatory relationship still matters for a book built the way Circa is built.

Why Circa Is Still Playing by State Rules

“With Circa’s unique… low-hold model, we’ve got to have the right regulatory environment in place,” Stevens told Covers. That low-hold, sharp-friendly approach is Circa’s calling card — higher limits, tighter lines, and a betting menu built for serious bettors rather than casual recreational play. Operating that model well, according to Stevens, benefits from the kind of direct regulatory relationship that state licensing provides, something a national prediction-market wrapper doesn’t necessarily replicate.

Arizona will be the fourth state where Circa deploys its newer proprietary betting platform, following earlier rollouts in Iowa, Colorado, and Missouri. Each of those launches expanded the available betting menu while keeping the same lower-limit-averse philosophy intact — a pattern Circa appears set to continue as it grows.

How the Arizona Deal Came Together

Arizona permits up to 20 sportsbook operator licenses, split between tribal designees and licenses tied to professional sports teams or venues in the state. Circa’s entry came through the San Juan Southern Paiute Tribe after the tribe’s previous operator partner, Betway, exited the U.S. market entirely, opening the door for a new arrangement. The Arizona Department of Gaming ran a licensing application window from June 27 through July 10, and Circa Sports Arizona LLC was formally approved on July 27.

That makes Circa the sixth operator in Arizona to enter through a tribal partnership, joining bet365, Desert Diamond, Fanatics, Hard Rock Bet, and betcris in that category — and the state’s 13th licensed online sportsbook overall. No launch date has been finalized, but the Department of Gaming says it’s now working with Circa on the remaining steps required before the book can accept live wagers. Stevens is targeting a January 2027 go-live, though he was careful to note it isn’t official until the state signs off.

What This Means Going Forward

Stevens told Covers he’s keeping an eye on additional markets but doesn’t currently have “another deal in the hopper.” For bettors who like Circa’s sharp-book reputation, Arizona joining Nevada, Colorado, Iowa, Missouri, and Circa’s other existing states gives another regional option once the book actually launches. It’s also a useful data point in the broader industry conversation about prediction markets versus traditional sportsbook licensing — at least one prominent operator is still betting that the old model has real staying power.