Arizona State Senator Sally Ann Gonzalez has introduced a bill aimed at increasing the number of mobile gaming licenses available in the state. A total of 20 licenses were issued initially, 10 for tribal organizations and 10 for professional sports organizations. Sen. Gonzalez’s bill would allow all of the state’s tribes to be eligible for a license.
Qualified Tribes Unable To Obtain Licensing
On January 31, Sally Ann Gonzalez introduced SB 1674 which would expand the number of mobile gaming licenses the state could issue, as well as allowing additional retail wagering options for tribal operators, although there has been no mention of any online
real money casinos. When Arizona’s initial sports betting legislation was passed in April of 2021, 10 licenses were made available to tribal operators and 10 were made available to professional sports organizations. There was not much competition for the professional sports organizations with every qualified applicant being awarded a license and two more still available either for new organizations that form in the future or for smaller organizations to pursue if they wish.
The tribal licenses were much more highly sought after. With only 10 spots available and 23 qualifying tribes who wished to acquire a license, more than half of the applicants were left out. It was especially onerous for the tribes who missed out as they were required to pay a non-refundable $100,000 application fee to be considered. The sports organizations were required to pay the same application fee, but they had a virtual guarantee of approval while each tribe had a less than 50% chance of seeing any return on their six-figure investment.
This matter is personal for Gonzalez, as she is married to a longtime tribal councilman for the Pascua Yaqui tribe, as well as serving on their tribal council herself in the past. The Pascua Yaqui are one of the 13 tribes who did not receive a gaming license. If SB 1674 passes, it will explicitly allow for each of Arizona’s 23 tribes to acquire a mobile gaming license. Another tribe, the Yavapi-Prescott tribe, filed a lawsuit against the state in August over their inability to obtain a gaming license under the new legislation.
In addition to giving each tribe the opportunity to participate in the newly legal sports betting market, the bill would also expand the ability of tribes to operate brick and mortar retail locations. With the passage of SB 1674, tribes would be able to open retail locations within five blocks of a sports facility or sports complex. The 10 professional sports organizations licensed already have the right to operate retail operations both inside venues as well as within five blocks, but the licensed tribes currently are only able to offer mobile betting outside of tribal land.
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Potential opposition from existing operators
The biggest opponents of Sen. Gonzalez’s bill will likely be the eight professional sports organizations currently operating in Arizona. The bill would allow for increased competition among online providers. Even more importantly, it would allow for competition in the retail markets near the venues that sports organizations are currently afforded a de-facto monopoly on.
With professional sports organizations seeking to protect large investments they have made into facilities like the massive 20,000 square foot, two-story retail sportsbook Caesars Palace opened just outside Chase Field they will be motivated to prevent or amend this proposed legislation to keep the tribes from opening up competing nearby betting locations.
Can the new legislation bring true parity?
Like with all of our
Legal Gaming news
articles, we have been following this closely. The initial decision to award 10 licenses each to tribes and sports organizations was described as ensuring parity in allocating these lucrative opportunities. With the large discrepancy between the size of each group it seems clear that in practice the goal was not achieved. This legislation has the potential to more accurately fulfill the goal of giving qualified groups access to the newly legal Arizona sports betting marketplace.
In addition to providing parity for operators, additional competition is always good for sports bettors. With more operators competing for their share of the gambling market, customers would enjoy the best possible promotions and odds. It remains to be seen if Sen. Gonzales’ bill will gain more traction than the similar amendments she proposed before the current legislation was passed. She is currently working with tribal leaders and other legislators to drum up support for her bill.
