The Arizona legislature is considering a sports betting bill that would give tribes a monopoly but would ban wagers on college games. There are 16 tribes in the state and 24 tribal casinos.
Senator Sonny Borrelli and Reps. Mark Finchem and Leo Biasiucci are the authors of SB 1158 that would spell out that federally-recognized tribes based in the state would be able to offer the wagers. Not just tribes with casinos but any tribe able to operate a kiosk or bar or even a private club, even if the facility was not on tribal land.
The bill states: “Each federally recognized Indian tribe that has a tribal-state gaming compact entered into pursuant to Chapter 6 of this title and that has tribal headquarters on Indian lands located in this state may operate sports betting as defined in Section 13-3301. No other person or entity may operate sports betting.”
They would be regulated by the Arizona Department of Gaming, which would ensure the activity follows tribal gaming regulations.
Under the bill’s provisions, tribe could also enter into agreements with non-tribal operators to provide sports betting. They would pay a 6.75 percent tax on gross revenue, which is on the low side for sports betting taxation rates. Tribes with casinos would pay 8.5 percent, the same rate as they pay for slots and table revenues. The bill does not make a provision for online or mobile platforms and doesn’t include the “integrity fees” sought by the NFL, MLB and other sports leagues.
Borelli declared, “This is a great way for the state to get more revenue.” One study estimated that the state could collect as much as $26.1 million if profits were taxed at 10 percent. Other studies project far smaller numbers.
Wells Research Gaming projects between $486,000-$2.3 million in revenue.
Arizona State University School of Public Affairs Director Donald Seigel told AZ Family: “If I had to bet, I would say this may not generate as much revenue as what’s being projected.” He added, “How will sports gambling affect lottery revenue? How will it affect activity on other sin items that we know are consumed in conjunction with gambling like alcohol and tobacco?”
The Santa Ana Star Casino in New Mexico became the first Indian casino to offer sports betting. However, no state has yet passed a bill that specifies that sports betting is the sole provenance of federally-recognized tribes.
Because the bill has an emergency clause, it could become law immediately if signed by the governor, Steve Ducey.
Ducey has indicated that he favors the bill because it would give him an excuse to seek more revenue from the gaming tribes. Tribes have paid $1.45 billion to the state since tribal state gaming was authorized in 2004 by amending the constitution.
