Arizona Attorney Says Sports Betting Would Require Compact Change

The existing Arizona tribal state gaming compacts create an almost insurmountable barrier to the state legislature creating a framework for legalizing sports betting says attorney Steve Hart (l.). Any such framework would violate the compacts and rob the state of much of the gaming revenue they pay, say experts in gaming and Indian law.

Gaming and Indian law attorney Stephen Hart, a partner with Lewis Roca Rothgerber Christie LLC said in a speech last week that if Arizona approves sports betting, it will need to offer a deal to the state’s 20 gaming tribes or risk losing at least some existing gaming revenue.

There has been some discussion of allowing businesses or even the state itself to offer sports betting. However, Hart told a forum on sports betting held at Arizona State University that this risks violating the tribal state gaming compacts.

Hart predicted that probably sports gaming in Arizona will be limited to casinos operated by gaming tribes. “That’s probably the way you’re going to see it here in Arizona,” Hart said. He added that it would be almost impossible for the state to pass a sports betting law that would open it up to commercial vendors—but not tribes.

One speaker asserted that Arizona’s gaming compacts, first adopted in 2002, are currently under negotiation to allow sports betting. If they are, so far no progress has been announced.

The state’s problem is frequently described as a “poison pill,” that affects states that having gaming compacts with tribes. Without an almost complete rewrite, the state would probably lose more money than it would make. The tribes currently pay 8 percent of their gaming revenue to the state in return for exclusivity.

Hart said the state would need to limit taxation to 7 to 10 percent, or it would encourage illegal sports betting.

Recent Articles

History Playbook

On This Day In Sports History

On July 25, 2015, Cole Hamels pitched a 13-strikeout no-hitter to lead the Phillies past the Cubs 5-0 at Wrigley Field—the first no-hitter at the stadium since 1972. Hamels threw 129 pitches, securing the final out when Odúbel Herrera made a dramatic, tumbling catch on a Kris Bryant fly ball to center field. This historic performance marked Hamels' final game in a Philadelphia uniform; after 10 seasons with the club, he was traded to the Rangers six days later.

On This Day In Sports History

On July 24, 1908, American Johnny Hayes won the Olympic marathon in London following a dramatic controversy. Italian runner Dorando Pietri entered White City Stadium well in the lead but collapsed five times from exhaustion. Track officials helped Pietri to his feet each time, enabling him to cross the finish line 32 seconds ahead of Hayes. However, after a protest was filed on the American's behalf, Pietri was disqualified for receiving assistance, and Hayes was awarded the victory.