Arizona Legislation: Major League Franchises, Tribes Get Mobile Sports Betting; Tracks Get Keno

Phoenix, Ariz., has four major league sports teams (MLB's Diamondbacks, NBA's Suns, NFL's Cardinals and NHL's Coyotes) and one minor league racetrack (Turf Paradise). In legislation signed into law last week by Gov. Doug  Ducey, the four pro sports teams were among those given the opportunity to buy a license to offer sports betting at their stadiums as well as operate a mobile sports betting platform.

The same legislation gave Turf Paradise and other tracks in the state – along with fraternal organizations – the option to offer keno, a random numbers game offered by lotteries in many states.

The legislation did not address the state's absurd advance-deposit wagering law that requires horse racing bets be made by calling in by telephone to wagering providers rather than using a computer or smartphone apps.

Historical horse racing language was removed from the gambling bill prior to passage.

Powerful native American tribes in Arizona also get to offer sports book and mobile sports wagering, as will NASCAR and PGA Tour events. Up to 10 licenses will be issued for sports organizations and 10 to tribes.

Through the legislation and a new compact negotiated by the Ducey administration, tribes – which operate 25 casinos in Arizona including seven in the Phoenix area – can expand their table game offerings and increase the number of slot machines. The compact permits four new casinos in the Phoenix area.

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COVID-19: Local Officials Prohibit Arizona Downs From Racing In 2020

Citing concerns for public safety and new state orders restricting gathering in public places, local officials have prohibited Arizona Downs from opening this racing season.

That decision comes in the wake of the COVD-19 pandemic and after weeks of discussions between track operators and state and local officials. Though there were initial hopes of hosting races without spectators, local officials raised additional concerns about adequate spacing in stables and other back-of-the-house operations.

“We were hopeful we would be able to host racing, but understand and respect their decision,” said Tom Auther, an Arizona Downs owner. “Nothing is more important than the health and safety of our employees, fans, horsemen and jockeys.”

Earlier this year, Arizona Downs applied with the Arizona Racing Commission to host races through September. But after sharp increases in reported COVID-19 cases across the state, Arizona Gov. Doug Ducey in late June issued an Executive Order prohibiting the gathering of more than 50 people unless authorized by local officials. Prescott Valley officials recently provided formal notice to Arizona Downs that racing will not be allowed.

“We recognize the many difficult decisions our state and local leaders have had to make in recent months and appreciate them keeping safety at the forefront of all decisions,” Auther said. “We look forward to working with each of them to ensure the safe and successful opening of Arizona Downs in 2021.”

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