Green Light for Sports Gambling in Arizona

It was a hard-fought battle over the last year or so. However, the Arizona Senate has passed HB 2772 (an identical bill to SB 1797), and the bill is on the way to the desk of Gov. Doug Ducey, who is expected to sign the bill in the coming days. It's noteworthy that the bill was passed under an emergency clause that required a two-thirds vote in the Senate. That same clause made it possible for the bill to be immediately signed by the Governor.

Much of the debate over the last year involved what to do with the current Tribal compact that is set to expire by the end of next year. With this new bill, the Indian Tribes will get the opportunity to add a couple of new casinos and some new games to the rosters of what is already available.

As far as the sports betting portion of the bill, there will be a total of 20 licenses allotted. Of the 20, 10 mobile/retail licenses will be going to Tribal concerns. Currently, there are a total of 16 tribes running a combined 25 retail casinos in Arizona. It will take a bit of effort and compromise to figure out which tribes will be getting the coveted licenses.

The other 10 licenses will be allotted to the state's professional sports franchises. That would include the Arizona Cardinals (NFL), Phoenix Suns (NBA), Arizona Dbacks (MLB), the PGA Tour, and the Arizona Coyotes (NHL). Based on the language in the bill, each of these teams will have the right to open sports books in their venues. If all licenses are not subscribed, race tracks and off-track betting facilities will be permitted to apply for them.

What Else is in the Bill?

The details within the bill are somewhat interesting. Betting on statewide college sports teams will be permitted. However, proposition bets on players and teams will not be allowed on betting menus.

Each approved licensee will be required to pay an annual fee of $150,000 with the proceeds going to the state's general fund. Compared to states like Pennsylvania where the license fee is a whopping $10 million (one time), Arizona licensees will be getting away on the cheap. They will also benefit from a tax rate of only 8% on gross revenues, which is on the low end of what other states are collecting.

When Will Sports Betting Go Live in Arizona?

Assuming Governor Ducey signs the bill this week, there is a good chance Arizona residents could be legally betting on sports by the start of the NFL season in September. Clearly, that would be the goal.

To make that happen, applications would need to be processed and approved sometime in the middle of summer. That shouldn't be a problem with the nation's top bookmakers like DraftKings, BetMGM, and FanDuel already preparing to move forward. It is worth noting that DraftKings could get the first license as they look to expand on a current partnership with the PGA Tour.