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Arizona sports betting legislation appears to be coming to a head.

The Arizona House voted to pass HB 2772, 48-12. The bill now heads to the Senate as the most likelyAZ sports bettinglegislation to make it all the way to Gov. Doug Ducey’s desk.

In February, the state’s Senate Appropriations Committee merged the chamber’s sports betting ambitions with SB1794, a bill poised to allow historic horse racing. It awaits a full chamber vote but remains an unlikely proposition.

A smooth Arizona sports betting journey?

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As Arizona looks to tap into a sports betting market that could generate up to an estimated $42 million in taxes, the House has provided a cleaner route to legalization than the Senate.

The bill allows for 10 licenses tied to professional sports organizations and another 10 licenses to the state’s gaming tribes. The bill also legalizes daily fantasy sports.

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The House bill received only scant opposition centered on data privacy in committees. Also among opponents were sports bars and restaurants who complained about missing out on potential revenue.

Arizona tribal support

The Arizona sports betting bills started as larger pieces necessary to enact a new gaming compact negotiated between Ducey and the tribes.

During hearings on the bills, questions were raised on how and if tribes support the broader AZ sports betting legalization. Several tribal leaders spoke in support of the bills throughout the process.

Explaining her “aye” vote, Rep. Jasmine Blackwater-Nygren reiterated the support tribes issued for HB 2772:

“They rely on gaming facilities and provide jobs and basic services,” Blackwater-Nygren said. “Tribes do not have the same access to the same tax base as towns and counties. This bill provides another way for tribes to raise gaming revenues.”

The Senate route became contentious regarding tribal support as some suggested the historic horse racing practice violates a previous 2002 gaming agreement with tribes. The HHR bill passed 5-4 through the Appropriations Committee after the sports betting bill passed the Senate Commerce Committee,6-3.

Still two routes alive in Arizona

With the Senate bill potentially enacting a “poison pill” because of its HHR base, that route doesn’t seem likely.

The Senate could approve the bill stripped of the HHR provisions to regain tribal and broader political support.

With the House bill now on the way to the Senate, it still appears to be the cleanest option to legalize sports betting in Arizona this year.

PHOENIX (AP) — Arizonans would be allowed to bet on professional and college sports at tribal casinos and at sites owned by pro sports teams under a proposal that is part of an update to the state’s deal that allows Native American tribes to run casinos.

The wide-ranging proposal introduced in the Arizona House on Monday would also allow bets to be placed online, fantasy sports wagering, and add limited Keno games at off-track betting locations and social clubs like the American Legion.

The proposal introduced by Republican Rep. Jeff Weninger of Chandler has been anticipated since GOP Gov. Doug Ducey announced “an opportunity for a modernized gaming compact that will bring in more revenue for our tribal nations and our state budget,” in his State of the State address last month. Ducey has been working on a new deal with tribes for several years, hoping it can boost state revenue by allowing gambling outside of tribal-run casinos.

That’s just what the deal does, Weninger said Tuesday, although the anticipated revenue hasn’t been released.

“With that comes tax revenue without raising taxes, and allows us to keep our tax rates low,” Weninger said in an interview.

The biggest part of the plan would allow pro sports teams like the Phoenix Coyotes, Arizona Diamondbacks and Arizona Cardinals run sports betting operations at their respective venues, at a retail location within a quarter mile and online. There would be 10 licenses awarded to sports, which could include professional golf and even NASCAR, Weninger said.

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Tribes would also get 10 licenses and could run sports books at two dozen tribal casinos in the state.

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The tribes, which have fiercely protected their exclusive right to most gambling in the state under the gaming compact approved by the state’s voters in 2002, get the right to build some new casinos under an updated deal. And in a big win, they would also be allowed to greatly expand their exclusive gambling offerings, adding games like Baccarat and craps to existing offerings of slot machines, blackjack and poker.

And there are options for online gambling as well, allowing growing online gambling sites like Draft Kings to piggyback on the licenses.

Fantasy sports gambling also is embraced by Weninger’s proposal. The state would allow any company that meets it standards to run fantasy sports gambling operations.

Both the legislation and a 20-year extension of the state’s gaming compact with tribes must be adopted for either to go into effect.

Getchen Conger, Ducey’s deputy chief of staff, said the deal will help tribes and pro sport teams that have struggled during the coronavirus pandemic. And the plan is certain to boost state revenue, but it will take some time for the amount to become clear, especially revenue from gambling on sporting events.

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“This is the million-dollar question,” Conger said. “It really depends on what the uptake is on the event wagering.”

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The state gets a cut of the gambling profit, which will go to the general fund. Money from tribal gaming goes to special state accounts and local governments. In the fiscal year that ended on June 30, 2020, tribes brought in nearly $2 billion in gambling revenue and the state received $102 million, according to a Department of Gaming report, while cities received $13 million.