Arizona Sports Betting Rules Ready For Public Review

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Arizona sports betting and daily fantasy sports rules are ready for public review, allowing stakeholders to submit comments for six days until June 21. The Arizona Department of Gaming (ADG) posted the rules Tuesday, a day later than planned.

The 13-page rules draft misses some key elements, including the license fee to operate sports betting in the Grand Canyon State.

The ADG plans to host four open session virtual meetings for the general public to provide a forum for discussion with sports betting beginning at noon and daily fantasy sports in the later hours.

Arizona sports betting – retail and online – is on track for its launch date by Sept. 9, according to an ADG spokesperson.

Further Details

The review period closes on June 21 after which the ADG will begin to review and add changes to the proposed regulations with a view to launching Arizona sports betting on the kick-off day of the NFL season.

Stakeholders believe very little is available for them to review or comment on.

The gaming department will hold two virtual sessions (each three hours long) per day on Friday and Monday to hear public comments.

The Event Wagering session begins at 9 a.m. Friday, followed by a session on DFS, scheduled at 1 p.m. The schedule will repeat on Monday, with both discussions changing sides.

After June 21, the ADG will consider and submit the draft rules to the Arizona secretary of state.

No License Fee Details

The draft rules include important sections from definitions to internal controls to sports betting licenses.

However, the licensing section is blank when it comes to the proposed fees an operator, vendor, or supplier will pay to be licensed in Arizona. The ADG only outlines six license levels, without addressing either application or fees.

Broad Event Wagering

When sports betting will be available in September, Arizona will be one of the few US states with the broadest range of event wagering. Even wagering on the Academy Awards will be available, in addition to other cinematic and musical awards.

According to state law, event wagering includes professional, college, and Olympic events.

As of now, the law allows for as many as 20 land-based entities to have sports betting licenses, with each entity being entitled to one mobile skin. In addition, there will be ten limited licenses for retail-only betting at horse racetracks and OTBs.

Other Important Points in the Draft Rules

According to other key points in the rule draft:

  • Proxy betting is not allowed.
  • Credit cards will not be accepted to fund player accounts
  • The server must be located within state jurisdiction. Cloud backup is allowed, subject to approval by the ADG.
  • Operators will be allowed to offer tournaments, like March Madness pools.

Four Points Still Undecided

While the rules are almost baked, the draft rules leave open four key areas that will be decided in the coming days. These four points are:

  • Number of skins
  • Licensing Fees
  • Tax rate (or privilege fees) on adjusted gross sports betting receipts
  • License allocation

The upcoming sessions will be taking public comments and stakeholders’ feedback on those key points as well. A form for online comments is available on the ADG’s website.         

Lawmakers had set a goal to launch Arizona sports betting for NFL this fall after Gov. Doug Ducey signed a new tribal compact on April 15. On May 24, the federal authority approved the compact sooner than expected, paving the way for a timely launch.

The rules draft is the final paperwork before the Department of Gaming can prepare for the sports betting launch in the Grand Canyon State.

According to the legislative fiscal note, the state market could bring in $154.4 million in annual sports betting revenue.

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