Plenty of sports betting options in Arizona

Sports betting operators can start taking bets in Arizona on Thursday, September 9, after a judge ruled against a tribe that had filed an injunction to block the industry’s launch. On Monday, Maricopa County Superior Court Judge James Smith rejected most of Yavapai-Prescott Indian Tribe’s arguments.

Arizona Governor Doug Ducey signed HB 2772 into law on April 15, legalizing sports betting in the state. The legislation authorized the Arizona Department of Gaming (ADG) to issue up to 20 licenses: ten for professional sports teams and organizations and ten for tribes. In late August, the ADG awarded all ten tribal licenses and eight sports team/organization licenses. The Yavapai-Prescott Indian Tribe was one of six tribes that lost out.

Judge didn’t buy many arguments

One of the tribe’s arguments was that HB 2772 violated Proposition 202, voted upon by the state’s residents in 2002 approving tribal gaming, by allowing non-tribal entities to offer gambling. The judge said that Proposition 202 specifically regulated gambling at tribal casinos, adding, “Plaintiff did not cite language from the proposition indicating that Arizona would never expand gambling to different activities or locations. What is more, the proposition contemplated gambling expansions.”

The tribe also complained that the even ten/ten split of licenses was unfair, as there are only nine qualifying sports teams or organizations, while there are over 20 tribes fighting for online sports betting licenses. On top of that, the $100,000 application fee is nonrefundable.

Judge Smith did see the tribe’s point and said it could be something to look at, but said it wasn’t enough to issue an injunction. He also agreed with the state’s attorneys, who said that the tribe’s delay in filing the lawsuit hurt its case. The tribe didn’t file the lawsuit until late August, while HB 2772 became law and the tribes signed new gaming compacts in April.

“The tribe’s delay filing suit rebuts the notion of irreparable harm,” Smith wrote.

The tribe made a two-pronged argument regarding “irreparable harm.” The main one was simply that without an online sports betting license, it won’t be able to make as much money in the future. It was also concerned that people who might normally go to its casinos would instead go to ones where they could wager on sports.

It has two casinos in Prescott, Arizona, about 100 miles north of Phoenix, where all of the state’s professional sports teams are located. Those teams – as well as other organizations and sports venues – can setup retail sportsbooks and offer betting online.

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