Clarity in Arizona Sports Betting Expected to Come Monday

Things are quickly coming to a head with regard to the possibility of sports betting legalization in Arizona. After years of negotiation, debate and discussion, the Arizona Senate is setting itself up for an up or down vote on a pair of intriguing Bills, HB 2772 or his SB 1797, on Monday.

Supporters of a legal sports betting platform in Arizona have been lining up to finally get something done in the state including Gov. Doug Ducey who called potential legalization “an opportunity for a modernized gaming compact that will bring in more revenue for our tribal nations and our state budget”.

Representatives from the Phoenix Coyotes, Arizona Cardinals, Arizona Diamondbacks, PGA Tour and Phoenix Raceway have also recently spoken out in favor of some sort of legalization.

What Is On the Line Monday

Sports betting legislation has been sitting idle in the Senate since the House voted to pass HB 2772, by a 48-12 margin, on March 4 after two pieces of legislation including a more controversial historic horse racing (HHR) bill were merged.

Sen. T.J. Shope is leading the charge toward legal sports betting in Arizona and is confident he has the two-thirds vote needed to approve any of the Bills before the Senate committees. After a Senate vote, he likes the state's chances of having it signed into law in quick fashion and for up to 20 online sports betting licenses as well as 31 locations that would be eligible for a brick-and-mortar sports betting venue being awarded sooner than later.

“It would allow the Governor to sign immediately, maybe as soon as Tuesday,” Shope said Thursday. “They would need to get approval from Bureau of Indian Affairs, but that’s almost a formality.”

Stripping Away the HHR Portion of the Potential Legislation

Part of the reason for so much Senate optimism comes on the heels of two Senators, Shope and Appropriations Chair Sen. David Gowan working to omit the historic horse racing part of the Bill.

The addition of HHR to any legal sports betting Bill would likely be seen as stepping on the toes of the state's Tribes, who have a say in what a potential platform would look like. As it stands, Arizona's tribes hold exclusive rights to HHR terminals in the state and likely wouldn't take kindly to any sort of changes on that front.

Renegotiation of the state's tribal compacts would become necessary to include HHR terminals and is both dangerous and time-consuming for those pushing to launch sooner rather than later. Sportsbook operators have also chimed in their lack of support for any legislation that the tribes opposed.

Omission of HHR could be viewed as a good faith move by government as they attempt to renegotiate and modernize tribal compacts with the aim of creating revenue streams for both.

The Potential For Arizona

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, making their market a sought after one by the top providers in the business.

According to Compass Strategies managing partner Kelsey Lundy, an estimated $42 million annually in taxes could flow from Arizona's legal sports betting platform to its general fund. An estimated $3 billion a year is bet illegally in Arizona.

With all of Arizona's sporting entities including Phoenix Coyotes, Arizona Cardinals, Arizona Diamondbacks, PGA Tour and Phoenix Raceway on board, sports betting is already prime for success in The Grand Canyon State.

While Its No Sure Thing…

Legal sports betting in Arizona seems to be on a positive path. There is likely to be some answers about its potential by Monday afternoon. If not Monday, clarification is widely expected in the next two weeks, before the Arizona Legislature adjourns for 2021 on April 24.

If passed, Arizona would become the first state to evenly divide its online licenses between Native American gaming tribes and professional sports teams. All of the top sportsbooks in the industry would surely battle for the right to those skins.

The smart money is on the Senate agreeing to some sort of legal sports betting framework and for legislation to be on Governor Ducey's desk by the end of the week. That would pave the way for a late-summer/early fall launch for Arizona's legal sports betting platform - just in time for the lucrative NFL season.