On behalf of Foley's Sports & Entertainment Group, I am pleased to announce the establishment of the Sports Betting and Gaming Task Force and its Nationwide Online Sports Betting Tracker—a one stop compilation and summary of state online sports wagering laws and regulations.
In 1992, Congress enacted the Professional and Amateur Sports Protection Act (PASPA) which effectively prohibited sports betting where the practice was not already legal under state law. In 2018, the Supreme Court struck down PASPA in its entirety, allowing each state to address the legality of sports betting on its own terms. Thirty states in the U.S. have now legalized sports betting in some form or another.
By the time PASPA was struck down in 2018, American consumption of entertainment, news, sports and social communication had irreversibly shifted toward mobile internet technology. The sports gambling laws passed in the wake of PASPA's repeal have reflected these changing consumer habits, as sports betting has been legalized not only in the comfort of brick-and-mortar casinos but also via an internet connection from smartphones and laptops. The results of these developments have been astounding—over $220 billion in U.S. sports bets have been placed in the five years since PASPA's repeal, the vast majority of which being placed online.
This tracker is meant as a roadmap for stakeholders in the sports betting and gaming space. It provides a useful breakdown of sports online gambling regulations in each state where the practice has been legalized and includes direct links to all state laws and administrative regulations. The tracker will be updated as further laws and regulations are passed or amended.
From parsing through complex regulatory and licensing requirements, to determining whether a game or activity constitutes gambling (and if so, where), Foley's experienced and knowledgeable Task Force is helping clients navigate the rapidly changing regulatory and legal landscape of sports betting and fantasy sports.
I want to extend my gratitude to my colleagues in Foley's Sports & Entertainment Group who helped create the tracker, specifically, Gregory Marino and Zack Flagel, who managed the project, Sam Fishman and Quinn D'isa, who contributed painstaking research, as well as to our design and marketing team, including Sylvia Oberlin, Brian Klemm, and Christina Wallace Cooper. This was, and will continue to be, a team effort.
Thank you for your interest and support.
STATES FOR GAMBLING TRACKER
Arizona
Currently Operational: Yes
Relevant Regulations: HB 2772 (2021 Gaming Act) 1 ; 2021 Arizona Gaming Compact 2; Arizona Administrative Code Ch.§§19-4-101:153) 3
Relevant Dates: HB 2772 signed into law on April 15, 2021; online sports betting launched on September 9, 2021.
Regulatory Body: Arizona Department of Gaming
Model: Closed Market
Basic Regulatory Structure: Online and retail sports betting are legal. Up to twenty (20) total sports betting licenses may be issued: up to ten (10) licenses for Native American Tribes and up to ten (10) licenses for non-tribal entities. Each license permits the licensee to operate both online and/or retail sports betting
Licensing Categories:
- Event Wagering Operator License:
- An owner or operator of an Arizona professional sports team or franchise, an operator of a sports facility in Arizona that hosts an annual PGA Tour event or auto race, or the licensed Designee of such an owner, operator of promoter.
- An Arizona Indian Tribe or entity fully owned by an Arizona Indian Tribe or Designee. A Tribe that has signed the most recent Tribal-State Gaming Compact is licensed only to operate online event wagering on its Indian lands – and cannot accept wagers from individuals not physically present on its lands.
- Management Services Provider License: A person that operates, manages or controls event wagering on behalf of an event wagering operator or limited event wagering operator. Including developing or operating event wagering platforms and providing odds, lines, and global risk management, etc.
- Supplier License: A person that manufactures, distributes, sells or leases event wagering equipment, systems or event wagering items.
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Footnotes
1. https://www.azleg.gov/legtext/55leg/1r/bills/hb2772p.htm
3. https://gaming.az.gov/sites/default/files/Event%20Wagering%20Revised%20Final%20(v1.0).pdf
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
