Arizona Lawmakers Pass Sports Betting and Gaming Expansion Bill  

Arizona legislative leaders passed Arizona’s sports betting bill late Monday which sets the state for the legalization of land-based and state-wide online sports betting. Following the Arizona House of Representatives’ approval last month, the Arizona Senate approved Senate Bill 1797 with a 23-6 vote.  Arizona Governor Doug Ducey has indicated he will sign the bill once it reaches his desk for signature.

In summary, the bill legalizes sports betting, daily fantasy sports, retail and online keno, and mobile lottery draw games.  In regards to sports betting, the bill allows for 20 total licenses to be awarded for online sports betting.   The twenty licenses are designated as “event wagering licenses” which includes ten licenses designated for Indian tribes and ten licenses designated for professional sports franchises and facilities. Currently, Arizona is home to six professional sports franchises and facilities, including the Arizona Cardinals, Arizona Coyotes, Arizona Diamondbacks, Phoenix Suns, Phoenix Raceway and TPC Scottsdale, a PGA Tour affiliate.  Each event wagering operator may partner with a sportsbooks “designee” to operate its state-wide mobile sports wagering on the licensee’s behalf.

The event wagering licensee is also permitted to operate a land-based sportsbook in their stadium, or nearby retail locations that are within five miles of their designated facility, called a “limited event wagering license.”  The Arizona Department of Gaming is permitted to issue ten total limited event wagering licenses to authorize wagering at the ten specific retail locations.   Accordingly, the bill also permits an event wagering operator to partner with a racetrack enclosure that holds a permit issued by the Division of Racing to obtain one of the ten “limited event wagering license”.  The limited event wagering license only permits retail sports betting, and not online sports betting.

All licensed sportsbook are required to use official league data to settle “in-play” or “live” wagers.  Most significantly, the professional sports leagues are expressly permitted to share in the handle from the sports betting operators without requiring any gaming license or regulatory approval.

In addition to sports betting, Senate Bill 1797 permits fantasy sports operators to finally enter the Arizona market.  All fantasy sports operators must be licensed with the Department of Gaming.  Indian tribes that conduct Class III Gaming pursuant to the tribal-state gaming company may offer fantasy sports contests as well, either directly or through a third-party operator.

Key Components

  • Twenty total event wagering licenses are available
    • Ten licenses for Arizona professional sports franchise and facilities
    • Ten licenses for Indian tribes
  • Ten licenses for limited event wagering, for retail sports betting including racetracks and specific retail locations
  • The Department of Gaming will establish application fees and renewal fees for all licenses
  • Licensees are required to use official league data for live in-game wagers
  • Professional sports leagues are permitted to share in the handle from licensees without having to go through a separate licensing process
  • Fantasy sports contests are now legalized

Amendments to Arizona Tribal Gaming Compact

Governor Ducey plans to sign this bill to help facilitate amendments to the tribal gaming compact between Arizona and the 23 federally-recognized gaming tribes.  Following the signing of this bill, Governor Duce is expected to sign amendments to the state-tribal gaming compacts to allow tribes to expand casinos and offer additional table games such as baccarat, craps, and roulette.  The amendments also permit the Tribes to expand casinos to an unspecified number of new casinos in Phoenix.

Gaming in the United States: Massachusetts

The Q&A provides a high level overview of the framework of gambling regulation; the regulatory authorities; gambling products; land-based gambling; regulation and licensing; online gambling; B2B and B2C operations; mobile gaming and interactive gambling; social gaming; blockchain technology; gambling debts; tax; advertising and developments and reform.

To read the full text of this chapter of Thomson Reuters Practical Law: Gaming Global Guide, written by Duane Morris attorneys Bill Gantz and Joseph Caputi, please visit the Thomson Reuters website.

Virginia Legislature Passes Bills to Expand Gambling in the Commonwealth

Legalized casino gambling and sports wagering are approaching the finish line in Virginia following the recent passage of two bills by the Virginia General Assembly. Senate Bill 36 and House Bill 896, both awaiting the signature of Virginia Governor Ralph Northam, would permit five land-based casinos, online sports betting and up to 2,000 additional historical horse racing machines.

View the full Alert on the Duane Morris LLP website.

Colorado Voters Cover the Spread and Approve Sports Betting Bill

Colorado House Bill 1327, titled “Proposition DD: Legalization and Taxation of Sports Betting” was put to voters in a ballot measure and was narrowly approved on Tuesday, November 5.  Colorado Governor, Jared Polis, signed Proposition DD into law in May 2019 and Colorado voters decided its final, successful outcome making Colorado the 19th state to legalize sports betting.  The law will permit land-based sports betting at Colorado’s 33 casinos, as well as state-wide mobile betting.  Notably, Proposition DD does not permit proposition bets for college sports.

The Colorado Division of Gaming is charged with regulating the new market which will allow three types of licenses to be submitted for approval.  Each casino will be limited to a single online/mobile platform or “skin.”  A master license will be issued to an operator that holds a retail gaming license in the state prior to May 1, 2020, or has obtained one through the purchase of an ownership interest in a casino that was in operation prior to May 1, 2020.   A sports betting operator license or an internet license sport betting operator license will be allowed  to contract with a master licensee to operate sports betting in person or online.  The bill sets the maximum license fee at $125,000 and each license must be renewed every two years.

Proposition DD’s passing will allow legal bets to be placed as early as May, 2020 and will tax a casino’s net sports-betting proceeds at a 10% rate.  This tax revenue will be used to pay for regulating sports betting in Colorado, a hold harmless fund, gambling addiction services, water projections, and other obligations.  According to Colorado’s fiscal impact statement, lawmakers expect around $10 million in tax revenue in the first year based on the expectation that Colorado sports betting licensees would take between $1.3 billion to $1.5 billion in bets.  We will continue to monitor this topic and provide updates on this legislation.