the Arizona Department of Games gathered public comment for its second draft rules for AZ sports betting Wednesday.
Comments received came from a variety of Arizona sports betting players ranging from professional sports teams to sports betting operators. ADG will accept written comments up to 11:59 p.m. PDT Wednesday evening.
ADG Director Ted vogt said refined draft rules and a licensing proposal will follow “shortly thereafter”. The ADG still plans to launch sports betting in September 9.
New AZ Sports Betting Coins
the second draft regulation includes license fees and proposed taxes.
These proposals came as a result of the first set of rules that didn’t include them, as ADG worked on fees, skin numbers and how they allocate licenses.
There is still little indication of how the ADG will license the state’s tribes, and the other topics have received a lot of comment. Comments for the first draft closed in June.
Fees receive feedback
Several speakers asked how the fees will be structured and when they will owe the fees.
The proposed rates are as follows:
- $ 100,000 Registration fees
- $ 750,000 license fee
- $ 150,000 annual renewal fee
The tax structure:
- 8% on retail betting
- ten% on mobile bets
Vogt explained the differences in tax structure as a combination of consideration of the tribal pact, other states, and retail overhead.
What is a sports betting skin?
In the last round of sports betting rules in Arizona, the ADG “deliberately” eliminated the word skin. Many stakeholders, mainly professional teams, have expressed concern that there may be more than one skin per license holder.
In the language, there can be a single sports betting system and up to two platforms. The language reads:
“Event Wagering Platform” means the Internet interface to a single event betting system, designed to accept mobile event betting through a website or mobile application. “
Arizona Coyotes representative André Diss asked if that meant they could have “Coyotes Bet” for the NHL team and “RoadRunners Bet” for their wholly owned American Hockey League affiliate. This comment was greeted: “This is potentially something you could do. “
Other Comments on Arizona Sports Betting Rules
Several stakeholders called for more specific language regarding official league data, particularly regarding value that constitutes “commercially reasonable”.
DraftKings Senior Legal Advisor Kevin cochran raised concerns about accounting procedures, suggesting that, as proposed, the requirements appear to be based on antiquated Nevada regulations and involve “a significant amount of manual accounting work.”
A representative of Penn National Gaming stated that the definition of affiliate marketing is too broad.
FanDuel Director of Government Affairs Andrew Winchell echoes both concerns. He also expressed concerns about the requirement for a geographic closure log of unsuccessful bet attempts.
The launch seems planned for the fall
Arizona Governor Doug Ducey signed a bill approving sports betting in April to accompany a new tribal pact between the State and its tribes of players. Several efforts have failed in the past.
The legislation assigns 20 licenses, divided among professional sports teams and tribes in the state. There is more than ten gaming tribes, which is why many are anxious to know how the ADG will allocate them.
As ADG strives to meet its launch target on September 9, sports betting partners continue to line up to enter the market. Last week, by Bally in partnership with the Phoenix Mercury, while WynnBET joined the Apache Tribe of San Carlos.