Arizona sports betting path cleared as court dismisses injunction request
Yavapai-Prescott Indian Tribe unsuccessful in last-minute legal challenge to declare House Bill 2772 unconstitutional
Arizona legislators have hailed a victory for the state following the decision to dismiss efforts by the Yavapai-Prescott Indian Tribe to have a last-minute injunction imposed against the launch of regulated sports betting.
Maricopa County Superior Court Judge James Smith denied the petition for the injunction, in which the tribe had asked for the Grand Canyon State’s sports betting law to be declared unconstitutional.
In its claim, the tribe argued the law, which came into force in April, violated Arizona’s Voter Protection Act, by illegally changing a 2002 voter initiative (proposition 202) authorizing tribal gaming in Arizona.
The tribe asserted that the law violated proposition 202 by permitting non-tribal operators to operate sports betting without first obtaining voter approval. Proposition 202 prohibited gambling outside of tribal reservations.
In his summation, Smith ultimately dismissed the claim, arguing that proposition 202 concerned tribal casino gambling and not other types of betting, as the Yavapai-Prescott Indian Tribe had stated.
“Plaintiff did not cite language from the proposition indicating that Arizona would never expand gambling to different activities or locations,” Smith wrote.
“What is more, the proposition contemplated gambling expansions,” the judge added.
In its lawsuit the tribe also argued that the law was unfair due to the limited number of licenses up for grabs by Arizona tribes.
Legislation had limited tribes to just 10 licenses, with the same number being made available to Arizona’s professional sports teams.
There are only nine qualifying teams or events which can run sports betting under legislation, compared to twice that number of tribes competing for just 10 licenses, something which the Yavapai-Prescott tribe argued placed it at a disadvantage when applying.
The presence of off-reservation sports betting close to its two land-based casinos in Prescott was also outlined by the tribe as potentially siphoning off players who would have previously gone to a casino sportsbook.
The Yavapai-Prescott Indian Tribe and its US sportsbook partner, PointsBet, were denied a license by the Arizona Department of Gaming in August.
In addition, the law stipulates a non-refundable application fee of $100,000, something which the tribe highlighted as another mitigating factor.
In considering these arguments, Judge Smith suggested the Yavapai-Prescott Indian Tribe had waited too long to launch its injunction claim and he questioned the tribe’s interpretation of the sports betting law.
In comments reported by the Associated Press, a spokesperson for Governor Doug Ducey hailed the injunction denial as clearing the way for sports betting to launch on September 9, which is in the knick of time before the new NFL season begins on the same day.
“Today’s ruling is not just a win in court, but a win for Arizona,” a spokesperson for the governor’s office explained.
“A tremendous amount of work by a diverse group of stakeholders has gone in to implementing HB2772 and the amended tribal-state gaming compacts. This ruling means that work will be allowed to continue,” he added.