Arizona online sports betting license holders, such as Tribal casinos or sport franchises, may have up to two online skins when sports betting is launched in the state.

The Arizona Department of Gaming released the second draft of its “Event Wagering” rules and noted that responsible license holders “may use more than one (1), and up to two (2), event wagering platforms.” One skin is included with each license and the holder may submit a request to the gaming commission in writing if it requires a second skin for its online sports betting programs.

Second Skin Available for License Holders

It’s an interesting decision from the Arizona Department of Gaming, as several representatives from the state’s professional sports franchises, including the Arizona Diamondbacks and Arizona Coyotes, spoke out in favor of just one proposed online skin per license holder rule at public hearings of the rules.

“In terms of entry into the mobile market, it was always the belief that it would be one skin allowed. It’s extremely important for us that this be specified in the rules going forward,” said Amilyn Pierce, Vice President, Government Affairs, of the Arizona Diamondbacks during the hearing.

It was always the understanding of the PGA that Arizona would only be allowed one skin per entity, David Miller, Vice President & Assistant General Counsel at PGA, said at the hearing. Clarity is needed in the bill regulations to ensure that each entity receive only one skin.

“I don’t know if a single skin market is better or worse for us, but I do know that was our understanding of the legislative intent,” he said.

Arizona Online Sports Betting Tax Rate Set

Among the new information included in the draft rules is a proposed tax rate for both retail and online sports betting. The Department of Gaming proposed an 8% tax of adjusted gross event
wagering receipts for retail sports betting and a 10% tax of online sports betting of adjusted gross event wagering receipts.

Under the bill’s outline the plan allows for as many as 20 licenses, split evenly between Arizona professional sport franchises and Native American tribes in the state who have signed the most recent tribal-state gaming compact. The bill allows Arizona’s professional sport franchises to run sportsbook at their facilities and partner with online sportsbook operators. There are currently six professional sports franchises in Arizona and 22 Native American tribes.

Additionally, 10 licenses for “limited event wagering operators” are available, but the holders need to partner with one of the 20 event wagering operators. The ADG is still working out the details for these limited operator licenses.

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Robert Linnehan
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