Arizona Gov. Doug Ducey has signed House Bill 2772 this Thursday that will allow Arizona consumers to bet on sports at tribal casinos and fantasy sports sites owned by major league sports teams.
The previously existing tribal-state pact was due to expire in the next few years, but the implementation of House Bill 2772 will update this agreement.
The new measure approved by the Legislature adds additional types of table games at tribal casinos and for the first time allows sports betting under licenses issued to tribes and pro sports teams. It also allows gambling on fantasy sports and new Keno games at horse race tracks and fraternal organizations.
“This is a unique step in a generation for tribal nations, their communities, and the entire state of Arizona – and I am proud to sign a compact gaming amendment and associated legislation that will benefit people in every corner of our state,” Ducey said.
“I cannot exaggerate the impact that the compact modification of tribal-state games and the related legislation will have on our state. Today’s signing is the culmination of years of partnership and involvement among many diverse stakeholders – and we did it by bringing everyone to the table, pushing individual agendas aside, and putting Arizona first.”
Under the new agreement, there are allowed as many as four new casinos in the metro Phoenix area, although only two are likely to be built in the near future. The new gaming facilities will provide funding to tribes in exchange for a contribution from tribal gaming revenues to pay for regulatory costs.
The facilities are to be developed on the Tohono O’Odham Nation land in the far western reaches of the metro area and on Gila River Indian Community holdings in the southeastern part of the vast metropolis. Altogether, as many as 11 new casinos are allowed statewide but only four in the first 10 years.
“There’s no question that Arizona has grown and changed significantly since the last major compact update in 2003,” Ducey said. “It’s important that we account for these changes in our policies and our compacts.”
There are currently seven tribal casinos in metro Phoenix and 24 all across the state. At least one new casino could be built in metro Tucson as well.
Tribes will also be given rights to operate nearly 6,300 new slot machines, on top of the 20,500 already allowed, plus a boost every two years after the new deals are formally approved by the federal government, the documents said.
In addition, the number of gaming devices that a tribe is allowed to operate will increase, while remaining limited.
A system that allows tribes to transfer the allocation of gaming devices to other tribes that have valid and effective tribal-state compacts will remain in place.
Private licenses are expected to bring in at least $100 million in new revenue for the general fund. The Legislature’s analysts put the figure at $34 million a year but acknowledged it is speculative.
The state can charge a maximum tax of 8% of the new non-tribal gambling profit, which will go to the general fund. The increase in tribal gaming will bring some increase to a special fund that distributes cash from a 1% to 8% maximum levy on tribal gaming revenues.
The tribes have fiercely protected their exclusive right to most gambling in the state under the gaming compact approved by the state’s voters in 2002 and will continue to get that protection under the new deal, with only the added exceptions allowed.
And in a big win, they would also be allowed to greatly expand their exclusive gambling offerings, adding games like Baccarat and craps to existing offerings of slot machines, blackjack, and poker.
In the fiscal year that ended on June 30, 2020, tribes brought in nearly $2 billion in gambling revenue and the state received $102 million, according to a Department of Gaming report, while cities received $13 million.
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