On April 13, 2021, the online sports bookmaking and gaming industry was in the limelight as the Maryland and Arizona Legislative authority passed the Arizona Sports Betting Bill – HB 2772 23-6 in the Senate, and the same is moved a step ahead in the legalizing process towards Governor’s Desk for further approval. This Arizona Senate Bill HB 2772 is a similar bill to SB 1797, also known as the fantasy sports bill. The AZ Senate Bill has already passed the House Commerce Committee, 9-1, cleared the full House, 48-12. Earlier, the SB 1797 passed the Senate Commerce Committee, 6-3, before its merging with a historical horse racing bill forced out of the Senate Appropriations Committee, 5-4. However, now House bill was substituted for the Senate bill with necessary amendments, requisitions, and corrections for approval. Further, as per industry sources, after the necessary revisions, the said bill has positive support of Gov. Doug Ducey as moving ahead in the queue of legislative approvals for legalization.
The Arizona Senate Bill’s approval from the governor will officially legalize the online sports bookmaking and gaming compact in the state. The Bill then will be legally authorized 20 licenses, out of which 10 licenses will go to tribal operators, and the other 10 licenses will go to Arizona’s professional sports teams. These Arizona’s 10 licensees will allow the state to set up sportsbooks at or near different places such as stadiums, auditoriums, racecourses, and golf courses. It will also legalize sports bookmaking, daily fantasy sports, and Keno and mobile draw. These licenses include the retail as well as mobile operations approval. Also, a tribe with multiple gaming locations will be allowed to operate retail sportsbooks at each in the state under one license.
The passing of this AZ Senate Bill will open new opportunities. It will allow the industry giants and most major operators such as BetMGM, DraftKings, and FanDuel to enter the market with 20 licensed partners available. The Bill will get along not only the revenue opportunities for the state but also will open and create business opportunities for the new as well as old business players/entrants in the industry. In other words, with an opening of Arizona’s online gaming and sports booking Market, the licenses for online sportsbooks like Barstool, BetMGM, FoxBet, WynnBet, PointsBet, and William Hill will also open. Each sportsbook will either need to partner with a tribal gaming house or with any other licensed sports team.
As per the industry experts, this AZ Senate Bill will lead to a financial uprise of the state economy. The legislative fiscal analysts projects USD154.4 million in annual taxable income from sports bookmaking revenue by 2023 & 2024. The State Authorities and gaming regulators will soon finalize the rate, license fees, and other details. However, the tax revenue fiscal note has proposed a minimum of 8% tax for achieving the state’s projected potential revenue.