Arizona Approves the Biggest Gambling Expansion in the Last Two Decades

The time has finally come for Arizonians to enjoy legal sports betting. Gamblers in the state are likely to begin betting by the end of the year.

The House of Representatives approved two companion bills in early March, and now the Senate has confirmed this decision. The only thing left is for Governor Doug Ducey to ratify, putting the bills into law.

What Does the New Gambling Expansion Entail

History is in the making with two companion bills — House Bill 2772 and Senate Bill 1797.

After the House passed the former with a 48-12 vote, the Senate has just now approved the latter with a 23-6 vote and only a single Senator abstaining. Bipartisan support was seen for both bills.

Once the Governor ratifies them, both retail and online sports betting will become legal in the state. All forms of the two will be allowed, except for proposition bets. This means people will only be able to wager on the outcome of matches and events or point spreads.

A total of 20 different operators will start online operations, including the first in-stadium bookie in the US.

Ten of these will be owned by sports organizations and ten by the Native American tribes of Arizona. This marks the first time in Arizona’s history that gambling will work outside of the control of Native American tribes.

The license holders will be allowed to partner up with sports betting companies like DraftKings and FanDuel to bring wagering to the online realm.

What’s also interesting here is that the bill will legalize fantasy betting. Arizona was one of the few states that still considered fantasy betting illegal.

Arizona Set to Receive Major Tax Revenues

The new gambling law will also introduce an 8% tax rate for all revenues sportsbooks make. This means the state will subtract 8% from the payouts bettors receive.

The law will likely charge sportsbooks $150,000 annually for the right to keep their gambling license.

As for the state’s revenues, the current estimate is that this law will bring an additional $34 million to Arizona’s annual budget. Sports betting alone is likely to yield $15 million, keno $16 million, fantasy betting $1.2 million, and a mobile draw game around $2 million.

How Will the Bill Affect Native American Tribes?

Even though Native American tribes will lose their monopoly on gambling in Arizona, they still have a lot to gain.

Governor Ducey will also sign amendments to the compacts the state has with the local tribes. These will give them the right to improve and expand their casinos.

Currently, tribal casinos in Arizona only offer a handful of card games like poker and blackjack. With the amendments in effect, they’ll be able to offer games like roulette, baccarat, and craps.

The new amendments are the main reason why the tribes accepted this legalization. On top of that, they will likely get the chance to open new casinos in the metro Phoenix area. However, we don’t have any official information at this point.