Arizona Quickly Moving Toward Legal Sports Betting Legalization

The idea of legal sports betting in the state of Arizona looks as though it may be coming to light after years of debate about what a potential platform would look like. On Thursday, a vote in the Arizona House revealed strong bipartisan support for Bill HB 2772 which could finally pave the way for legal sports betting to go ahead in the state.

It has been a years-long battle in Arizona for the state's legislators to reach this point. Tribal compacts had to be renegotiated and the House had to agree on a satisfactory path forward - a path that was perhaps unnecessarily complicated. Now it is up to Arizona's Senate to take the potential legalization of sports betting past the next necessary step.

Support-Stream

Support for an Arizona legal sports betting scene appears to be an all-time high. The House Bill passed with an overwhelming bipartisan 48-12 majority and last month passed the House Rules Committee with a 9-1 vote in favor.

Governor Rob Ducey, in his State of the State address in February called sports betting “an opportunity for a modernized gaming compact that will bring in more revenue for our tribal nations and our state budget.”

Bettors and betting providers are also lining up in anticipation of sports betting legalization in Arizona. William Hill, PointsBet and Penn Nationals’ Barstool Sportsbook along with BetMGM and the two DFS giants have already signaled a desire to enter the Arizona market, making for a robust and competitive market, right off the bat.

What's at Stake

A legal sports betting industry in Arizona is likely to be a huge success. After all, Arizona is the 14th largest US state in terms of population with 7.3 million residents and the state boasts teams in every major North American sport.

Representatives from the Phoenix Coyotes, Arizona Cardinals, Arizona Diamondbacks, PGA Tour and Phoenix Raceway have all voiced their support of legal sports betting in the state to add to the list of backers for such a platform.

Early projections have sportsbooks contributing $42 million annually in taxes to its general fund, according to Compass Strategies managing partner Kelsey Lundy. Help for the economy and Arizona's sports franchises in addition to the right to legally participate in something that is already going on is on the line.

Details of the Bill

The Arizona House Bill HB 2772 is as optimistic a piece of legislation that has been drafted in the state with regards to legalization of sports betting. It not only has the backing of a few top-end sportsbooks like the two US DFS giants and BetMGM but also the support of an increasing number of Arizona lawmakers. It would not have been completed without Gov. Doug Ducey's ability to update the gaming compacts with Arizona tribes.

The Bill would pave the way for up to 10 mobile and retail gaming licenses for Native American tribes and make Arizona's professional sports teams eligible for 10 more licenses. There would also be a much needed and already heavily used DFS element to the new sports betting legislation as well as limited Keno games a specified locations.

Tax rates and licensing fees have yet to be included in any Bill.

Now It's the Senate's Turn

With Bill HB 2772 getting the legislative go-ahead in the House of Representatives in Arizona, it is now up to the Senate to hear and hopefully pass the Bill and give light to legal sports betting. But the Senate has their own ideas about how to ultimately legalize sports wagering in their state.

Senate Bill SB 1794 has been proposed as a competing Bill to the House piece of legislations. SB 1794's angle is that it would allow for historic horse racing (HHR). HHR is considered a threat to the tribes' revenue stream however and more than likely will be opposed by the tribes for which any piece of legislation will need in order to pass.

So, while the Senate has their ideas, on the surface it looks as though the House Bill ratification is their best path forward toward legalization.

What's Next

Two opposing Bills, one in the House and one in the Senate, means that there is likely to be a political fight before a final decision comes down on what exactly a legal sports betting platform will look like in Arizona. It's between the House Bill and the HHR proposal.

Lawmakers and those involved in the pursuit of a legal sports betting platform in Arizona are eyeing late-2021 or early-2022 for a full launch of a legalized sports wagering. But there are still those hills to climb.

As it stands, the idea of legal sports betting in Arizona is as close as it ever has been. Lawmakers will be working hard to get something done ahead of the June closing of the 2021 Arizona legislative session. Momentum is on their side – unfortunately, time is not.