Arizona governor gives seal of approval to sports betting bill
DraftKings and FanDuel to build physical sportsbooks at in-state sporting venues following governor’s signature on betting and tribal gaming legislation
Arizona Governor Doug Ducey has signed a new sports betting bill into law in the Copper State.
Bill HB 2772, which includes a 20-year extension to existing state tribal gaming compacts, provides for up to 20 sports betting licenses for both retail and online sports betting operators.
Ducey hailed the signing of the bill as a “historic bipartisan achievement” for the state, with passage of the bill arriving after a rocky journey through the Arizona Senate.
Following an uncontested passage through the House of Representatives, the bill floundered in the Senate during the committee stage, before being pushed through with an emergency designation by 24 votes to six on April 12.
“This represents the most significant changes in almost two decades, a truly historic event,” Ducey said.
“This compact amendment and associated legislation continues and builds on the success that the tribal-state partnership has provided for decades.
“We can call this a win-win-win for the tribes, the state and the taxpayers,” Ducey added.
Arizona brings the number of US states where sports betting is now legal to more than two dozen.
Under the terms of the bill, the state’s tribes receive 10 of the available licenses, and any tribe operating multiple gaming locations can operate multiple sportsbooks under one license.
The remaining 10 licenses are reserved for Arizona sporting organisations. A minimum tax rate of 8% of revenue will be applied to all operators offering sports betting in the state. Sixteen tribes run 25 casinos in Arizona.
State estimates claim Arizona sports betting operators could generate $154.4m in revenue as the market develops.
Operators have wasted no time in concluding market-access deals, with both DraftKings and FanDuel inking agreements to develop sportsbook offerings.
DraftKings, in partnership with the PGA Tour, has agreed a deal to operate a sportsbook at the TPC Scottsdale golf course.
It will see the operator become the exclusive sports betting partner of the annual Waste Management Phoenix Open and create a “visually stunning 19th hole experience” where fans can “gather year-round to place wagers, watch sports and enjoy quality food and beverage options.”
“When DraftKings became the first official betting operator of the PGA Tour last summer, a number of possibilities opened up to innovate together,” said DraftKings chief business officer Ezra Kucharz.
“This momentous effort to pursue a first-of-its-kind sportsbook with the PGA Tour is a testament to the vision of both organizations that we believe will ultimately benefit Arizona sports fans who want to legally bet on sports,” he added.
FanDuel has concluded its own market-access deal with Arizona’s Phoenix Suns basketball team, which will include the development of a luxury retail sportsbook at the Phoenix Suns Arena.
The facility, which will stretch across 6,300 square feet, is expected to open in time for the 2021-22 NBA season.