When Arizona Governor Doug Ducey signed HB 2772 to legalize sports betting, representatives of 22 tribes stood with him. The bill also extends tribal-state gaming compacts, originally signed in 1992, for another 20 years.
The tribes have contributed almost $1.5 billion to the state in revenue sharing. The new compact will commit them to also give a percentage of their profits to local charities.
The compact could add another 6,300 slot machines to the nearly 14,000 that are already deployed. Another 570 can be added each year to the total number allowed.
Now, well-known sportsbooks are lining up in preparation of applying for licenses. DraftKings, FanDuel, BetMGM and William Hill already have obtained a footing through tribes or commercial partners.
Reportedly BetMGM will gain entrée through the Gila River Indian Community, owner of three casinos near Phoenix. That would place it near its rivals DraftKings and FanDuel, the latter of which last year announced a “multi-year market access partnership” with the NBA Phoenix Suns. It plans to open a “luxury” sportsbook in the Suns arena in time for the next NBA season.
Phoenix Suns President and CEO Jason Rowley said in a statement: “FanDuel is the perfect partner as our missions are fully aligned. Simply put, FanDuel is committed to making sports more exciting while the Suns are focused on delivering exciting sports and entertainment and engaging fans at the highest level possible.”
DraftKings has partnered with the PGA to operate a sportsbook at TPC Scottsdale and operate a mobile platform. It could become the first sportsbook at a PGA Tour stop in the country.
At most 20 retail/mobile licenses will be issued and will be “tethered” to tribal casinos or professional sports facilities, plus another ten retail sports betting licenses for racetracks.
The professional sports outlets that are being talked about include NFL Arizona Cardinals, NBA Phoenix Suns, MLB Arizona Diamondbacks, NHL Phoenix Coyotes, NASCAR’s Phoenix Raceway, and the PGA Tour’s TPC Scottsdale.
Will Hill has reportedly made a deal to operate a sportsbook through the Harrah’s Ak-Chin Casino, which is also near Phoenix.
It is unknown who the Phoenix Raceway will work with, but it is suggestive that WynnBet and Penn National already have agreements with NASCAR. WynnBet is tethered with Martinsville Speedway and Richmond Speedway in Virginia.
Sports betting isn’t the only feature of the new law. Keno fans will now be able to play at their local American Legion or VFW. Also, the Arizona Lottery will be offering lottery tickets from the comfort of your own cell phone. Betting will be allowed on fantasy sports leagues.
The tribes have achieved a major goal of expanding the tables games they offer with the addition of baccarat, craps and roulette. They will also be able to add four more casinos. One in particular is mentioned in the 92-page compact: a Pascua Yaqui casino on Interstate 10, near Tucson. This could only happen if the land, once home to a now defunct cinema, is put into trust for the tribe by the Bureau of Indian Affairs.
According to a statement from the tribe: “The new gaming compact does allow for a new casino to be built, but the adoption of the compact does not guarantee it. The land will need to be taken into trust by the United States, which would require federal legislation to be passed. Development of a casino is not imminent, as additional steps must be taken before the process is final. The Pascua Yaqui Tribe looks forward to working with the City of Tucson on the potential development of the tribal land in the future.”
The other casino specifically mentioned in the compact would also be in the Phoenix metro area and would be built by the Tohono O’odham Nation, which owns the Desert Diamond Casino near Glendale.
Stacie Stern, governmental affairs for FanDuel, recently addressed the question of just how fast sports betting could be operating in Arizona. She told the Gilbert Sun News: “Let’s assume with the new 5G technology that you’re able to send and receive information quickly, you should be able to sit in a stadium and do in-game betting, just like you at home where you would presumably have a good internet connection.”
