Arizona legislative leaders passed Arizona's sports betting bill late Monday which sets the state for the legalization of land-based and state-wide online sports betting. Following the Arizona House of Representatives' approval last month, the Arizona Senate approved Senate Bill 1797 with a 23-6 vote. Arizona Governor Doug Ducey has indicated he will sign the bill once it reaches his desk for signature.
In summary, the bill legalizes sports betting, daily fantasy sports, retail and online keno, and mobile lottery draw games. In regards to sports betting, the bill allows for 20 total licenses to be awarded for online sports betting. The twenty licenses are designated as "event wagering licenses" which includes ten licenses designated for Indian tribes and ten licenses designated for professional sports franchises and facilities. Currently, Arizona is home to six professional sports franchises and facilities, including the Arizona Cardinals, Arizona Coyotes, Arizona Diamondbacks, Phoenix Suns, Phoenix Raceway and TPC Scottsdale, a PGA Tour affiliate. Each event wagering operator may partner with a sportsbooks "designee" to operate its state-wide mobile sports wagering on the licensee's behalf.
The event wagering licensee is also permitted to operate a land-based sportsbook in their stadium, or nearby retail locations that are within five miles of their designated facility, called a "limited event wagering license." The Arizona Department of Gaming is permitted to issue ten total limited event wagering licenses to authorize wagering at the ten specific retail locations. Accordingly, the bill also permits an event wagering operator to partner with a racetrack enclosure that holds a permit issued by the Division of Racing to obtain one of the ten "limited event wagering license". The limited event wagering license only permits retail sports betting, and not online sports betting.
All licensed sportsbook are required to use official league data to settle "in-play" or "live" wagers. Most significantly, the professional sports leagues are expressly permitted to share in the handle from the sports betting operators without requiring any gaming license or regulatory approval.
In addition to sports betting, Senate Bill 1797 permits fantasy sports operators to finally enter the Arizona market. All fantasy sports operators must be licensed with the Department of Gaming. Indian tribes that conduct Class III Gaming pursuant to the tribal-state gaming company may offer fantasy sports contests as well, either directly or through a third-party operator.
Key Components
- Twenty total event wagering licenses are available
- Ten licenses for Arizona professional sports franchise and facilities
- Ten licenses for Indian tribes
- Ten licenses for limited event wagering, for retail sports betting including racetracks and specific retail locations
- The Department of Gaming will establish application fees and renewal fees for all licenses
- Licensees are required to use official league data for live in-game wagers
- Professional sports leagues are permitted to share in the handle from licensees without having to go through a separate licensing process
- Fantasy sports contests are now legalized
Amendments to Arizona Tribal Gaming Compact
Governor Ducey plans to sign this bill to help facilitate amendments to the tribal gaming compact between Arizona and the 23 federally-recognized gaming tribes. Following the signing of this bill, Governor Duce is expected to sign amendments to the state-tribal gaming compacts to allow tribes to expand casinos and offer additional table games such as baccarat, craps, and roulette. The amendments also permit the Tribes to expand casinos to an unspecified number of new casinos in Phoenix.
Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.
