Arizona’s highest-grossing sportsbooks could face some of the nation’s most onerous tax rates if a proposed budget provision is passed this year. • Arizona Gov. Katie Hobbs proposed raising the sports betting tax rate to 45% for the state’s highest-grossing online sportsbooks, up from the current 10%. • The proposed increase would apply only to FanDuel, DraftKings, Fanatics, and BetMGM, potentially generating $150 million to $175 million in additional annual tax revenue.