Arizona cleared for sports betting after DOI approval

Sports betting is officially coming to the state of Arizona after the US Department of Interior (DOI) approved its tribal-state gaming compact on May 24.

The move has paved the way for the state to move forward after Governor Doug Ducey signed House Bill 2772 in April, which established a formal sports betting framework.

“The tribal-state gaming compact amendment, along with its associated legislation, was the culmination of a multi-year process and I was proud to work with all the stakeholders on this historic accomplishment,” Ducey said in a statement.

While more than 20 US states have legalized and launched sports betting since the landmark PASPA Supreme Court decision in May 2018, Arizona’s model promises to be unique.

The Grand Canyon State’s 20 licenses will be equally divided between its gaming tribes and professional sports teams, which should help ensure a competitive and consumer-friendly market.

Market-access dealmaking between operators and teams has already begun, with Caesars Entertainment joining forces with the Arizona Diamondbacks, FanDuel partnering with the Phoenix Suns, and DraftKings linking up with TPC Scottsdale — which hosts an annual PGA Tour event.

“Gaming creates thousands of jobs for Arizonans, it generates tax revenue that benefits key areas of our communities, and it draws visitors to our state,” Ducey said.

In addition to the operators launching their mobile sports betting products, there will also be retail sportsbooks coming to Chase Field, Phoenix Suns Arena, and TPC Scottsdale. The Suns’ sportsbook is expected to be ready for the beginning of the 2021-22 NBA season.

The approval from the Interior Department’s Bureau of Indian Affairs represented the final step to sports betting legalization, but the teams will still have to gain state-issued licenses before launching operations.

Legislative stakeholders are hopeful sports betting will be operational by the start of the NFL season in September.