Lawsuits filed by the Yavapai-Prescott Tribe and Turf Paradise racetrack could imperil the launch of Arizona sports betting. Both seek injunctions to halt the rollout. Hearings were scheduled for Friday, September 3.
That could mean the state won’t be able to go live with sports betting for the first day of the NFL season. The Arizona Department of Gaming (ADG) has already issued 18 licenses, eight to professional sports franchises and 10 to gaming tribes.
The tribal suit alleges that the law that allows sports betting violates Arizona’s constitution and the monopoly of gaming tribes offering. It also argues that the way the bill was passed, as an emergency measure, was also unconstitutional.
The lawsuit points out that Arizona voters, through their approval of the “Indian Gaming Preservation and Self-Reliance Act” of 2002, confined certain types of gaming to tribes. The same year, voters voted down a measure that would have allowed off-reservation gaming. This establishes voter intent, says the suit.
An attorney for the tribe says that the Voter Protection Act does not allow lawmakers to change a ballot proposition unless it “furthers the purpose” of the original law.
A critic of the lawsuit, Senator T.J. Shope, who sponsored the legislation, questioned why it wasn’t filed when the bill was signed, but only after the tribe’s application for a license was not approved.
He said in a statement: “The timing of these challenges, at the dawn of selection rather than during the legislative session or upon the bill’s enactment, amount to an end-around run on that qualifications-based awarding process at the Department of Gaming.”
Named as defendants are Governor Doug Ducey and ADG Director Ted Vogt.
The Turf Paradise suit is really a bid for a sports betting license. The track alleges that the ADG’s decision not to grant it one was “arbitrary and capricious, not supported by substantial evidence, and/or an abuse of discretion.”
The Yavapai-Prescott Tribe did not sign an updated tribal state gaming compact with Ducey this spring. The lawsuit alleges that the state presented the tribe with a non-negotiable proposal. It filed the lawsuit after its partnership with Australia-based PointsBet was first granted a license to offer sportsbook from the Cliff Castle Casino, only to have the license pulled as a mistake.
Queried by Sports Handle, an ADG spokesman wrote in an email: “On Monday, August 23, 2021, an administrative error led to the false issuance of a Tribal Event Wagering Operator License to Cliff Castle Casino Hotel entirely outside of the license allocation process used to distribute the available licenses.”
Cliff Castle General Manager Aaron Moss said in a press release, “During the licensing process, we had expectations that the Arizona Department of Gaming would be transparent in how the licenses would be awarded.” Moss added, “The fact that we were issued a license and then told that we did not get a license with no explanation has raised more questions than answers about the license allocation process.”
Besides allowing sports betting offered by gaming tribes and sports organizations, the new law expanded the table games that tribes can offer, and authorized several more tribal casinos.
The law also allowed daily fantasy sports to be offered, something that was rolled out. DraftKings, FanDuel, FFPC, Yahoo, Fantasy Sports Shark and Underdog Sports have been issued licenses to offer DFS.
The law authorized 10 tribal licenses, and 16 tribes applied. Licenses were granted to the Ak-Chin, Fort Mohave, Navajo, Quechan, Tonto Apache, Tohono O’odham, Hualapai, San Juan Southern Paiute, San Carlos Apache and Fort McDowell Yavapai tribes.
The pro sports teams and venues given licenses included Arizona Cardinals, Arizona Diamondbacks, Phoenix Suns, Arizona Coyotes, Phoenix Mercury, TPC Scottsdale, Phoenix Speedway and Arizona Rattlers.
ADG Director Ted Vogt noted that the department awarded licenses using criteria that included geographic diversity, community contributions and the ability to offer sports betting within six month.
