Arizona Sports Betting Launch Faces Two Legal Challenges

A tribe and a horse racetrack are both seeking injunctions in Arizona to block the launch of sports betting, expected on September 9. [Image: Shutterstock.com]

Two unhappy plaintiffs

The residents of Arizona almost have access to legal sports wagering for the first time in their history. The state’s gaming regulator handed out 18 sports betting licenses last week ahead of an expected market launch on September 9. However, a tribe and a horse racetrack operator have thrown a spanner in the works.

officials have unlawfully excluded them from the new market

The Yavapai-Prescott Tribe and the owner of Turf Paradise Racetrack have filed for injunctions in an attempt to block the betting launch from taking place. Both claim that officials have unlawfully excluded them from the new market, going against the state constitution and a tribal gaming compact from 2003.

In light of the approaching legal betting launch date, Arizona officials have scheduled two emergency hearings for the suits on Friday this week. If either eventually leads to an injunction, it could mean betting in the state won’t begin in time for the start of the NFL season.

The tribe makes its case

The Yavapai-Prescott Tribe, which owns Bucky’s Casino and the Yavapai Casino in Arizona, filed its lawsuit in the Maricopa County Superior Court last week. It names Governor Doug Ducey and the Arizona Department of Gaming (ADG) director Ted Vogt as defendants, and asks the court to stop the licensure process under HB 2772.

The suit argues that Ducey forced the tribe to agree to wagering laws in exchange for new gaming options, such as baccarat and craps. In addition, the group claims that its exclusion goes against a 2003 compact previously agreed with the state. By taking away the tribe’s exclusivity to gaming, the new betting law “materially changes” this compact agreement, according to the suit.

Arizona’s civil court will hear the Yavapai-Prescott lawsuit at 1pm local time on Friday. Notably, the legal challenge arrived on the same day that the ADG handed out the state’s first sports betting licenses. Of the 18 awarded, eight went to professional sports organizations and ten to tribal partners. Six tribal applicants failed to gain a license.

Turf Paradise denied a permit

In addition to the Yavapai-Prescott lawsuit, Arizona’s betting backers have another legal challenge to worry about courtesy of the Turf Paradise Racetrack in Phoenix. Officials rejected TP Racing, the venue’s owner, in the state’s licensing process last week. The ADG argued that it could not categorize the racetrack as a professional sports franchise, but Turf Paradise has filed a lawsuit in the hope of changing that decision.

arbitrary and capricious, not supported by substantial evidence, and/or an abuse of discretion”

The lawsuit describes the license denial as “arbitrary and capricious, not supported by substantial evidence, and/or an abuse of discretion.” Added to this, Turf Paradise notes a section on the ADG’s own website which refers to the racetrack as a sports franchise. It reads: “That dream became a reality on January 7, 1956, when Turf Paradise opened its doors becoming one of Arizona’s first sports franchises.”

The court will hear Turf Paradise’s lawsuit at 2pm local time on Friday. Like the Yavapai-Prescott Tribe, it also seeks an injunction to delay the September 9 launch for approved operators.