Arizona Judge Rules Against Tribe, Sports Betting Expected to Start Thursday
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For more information visit our Arizona Sports Betting page, where you can get full details regarding the Arizona sportsbooks. You will also find a full legal history.
Monday Ruling
On Monday evening, James Smith, a Maricopa County Superior Court Judge, refused to block the new Arizona laws for sports betting after facing notable opposition. The Yavapai-Prescott Indian Tribe had wanted the new law to be declared unconstitutional as they claimed it went against the state’s 2002 voter initiative, which authorized tribal gaming in Arizona. With this development, Arizona’s legal sports betting market has been cleared to launch later this week.
Legal Background
The United States paved the way for sports betting to be legalized state-by-state when the Supreme Court overturned the Professional and Amateur Sports Protection Act in 2018. Since that date, individual states have been working through the legislative process to pass bills and establish regulations for new sports betting providers. Arizona’s HB2772 passed in the House of Representatives and Senate earlier this year, and on April 15, 2021, sports betting became legal with a signature from Governor Doug Ducey.
The Arizona Department of Gaming, the regulating body for sports betting in Arizona, made its rules official on July 26, 2021. It will allow for 10 licenses for professional sports teams and events and 10 licenses for tribes. The Yavapai-Prescott Tribe argued that these new laws were unconstitutional based on Proposition 202, agreed upon in 2002. However, James Smith stated that the proposition did not indicate that “Arizona would never expand gambling to different activities or locations” and did, in fact, contemplate such possible gambling expansions.
Is the Structure in Arizona Unfair to the Tribes?
The Yavapai-Prescott Tribe argued that HB2772 shortchanged them by allowing for the same number of sports betting licenses (10) for both professional teams/events as well as tribes when there were 22 applying tribes and only 9 qualified teams/events. Additionally, all applicants must pay a nonrefundable $100,000 application fee, and many of the Tribes in Arizona did not see that money come to fruition. At the same time, the teams/events that applied knew they would be successful.
Smith brought up fair points that the Yavapai-Prescott Tribe has had since April to bring up these claims, and by waiting until a few days before sports betting is set to launch in Arizona, they ultimately hurt their own case. Additionally, there may not be strong evidence to support the Tribe’s claim that allowing sports betting outside of tribal casinos will hurt its revenue. All of the professional teams/events with state licenses are based in the Phoenix metropolitan area, leaving the rest of the state’s gambling industry relatively uninhibited.
Next Steps
Earlier this year, the United States Department of Interior approved Governor Ducey’s tribal-state gaming compacts that had been in progress for over five years. These compacts included 22 Tribes but not the Yavapai-Prescott tribe who filed this recent injunction. The new compacts allowed the Tribal casinos to offer Baccarat and craps, as well as other games. Ten Tribes have been awarded licenses for online sportsbooks.
Several sportsbooks will launch their online sports betting offerings on Thursday, September 9, the first day of the new NFL season. FanDuel, DraftKings, BetMGM, and Barstool Sportsbook are confirmed for the Arizona market. At the same time, Caesars, TwinSpires, Bally’s, Kindred Group, PointsBet, WynnBet, and Betfred all have local partnerships in place and are hopeful of earning licenses.
While the Yavapai-Prescott tribe is expected to file an appeal against this ruling by Judge Smith, Arizona legislators are still hopeful for the initially expected September 9 launch date of its new legal sports betting market. Be sure to read the news and check our site for all of the latest promotions as Arizona joins the expanding group of states with online sports betting markets.
