13 Dec 8th–Dec 14th, 2022 phoenixnewtimes.com phoenix new Times | cONTeNTs | feeDBacK | OPiNiON | NeWs | feaTuRe | NighT+Day | culTuRe | film | cafe | music | which applied for licenses only to be turned down by the state, sparking lawsuits. There’s less competition for the 10 licenses for the sports teams, which mostly are part- nering with third-party sportsbooks and marquee gaming companies. Casinos in Arizona are confined to reservations, but off-reservation sports betting thrives in bars, arenas, and on millions of cell phones across the state. “It’s about losing that exclusivity and competing in a commercial gaming market. Our feet are nailed into the ground here on the reservation,” Giles said. Tribes ‘Left Behind’ In 2002, Arizona overwhelmingly voted down a ballot initiative that would allow slot machine gambling and table games inside horse racing facilities. The same year, voters approved Proposition 202, called the Indian Gaming and Self- Reliance Act, which established the framework for gaming in Arizona. Since then, tribes have been able to cash out on transfer agreements — those who have an abundance of machine rights can lease their spinning wheels and slot machines to urban tribes who need them on the casino floor. The Navajo Nation, for example, is pulling in $10 million annually off the deal, according to the tribe’s attorney, Stephen Hart. But tribes need sports betting to work in order to stay afloat, some industry leaders argued, and they are concerned about increased competition. “We underestimated the number of commercial operators who came here and sought out tribal partnerships,” said Charlene Jackson, an attorney repre- senting the Hualapai Tribe near Kingman and a Maricopa County Superior Court judge. “A competitive wave is coming in. It’s a little bit scary for us.” Tribes can’t compete with the capital held by commercial operators such as Caesars, BetMGM, and FanDuel, Jackson said. While the Las Vegas bigwigs doled out billions of dollars on splashy bait to hook new Arizona sports bettors, tribes were scrambling to compete for licenses and find partners. “Quite frankly, we were left behind,” Jackson said. “The numbers reflect that.” ‘Only the First Inning’ Jackson argued that 10 licenses for 22 tribes was appropriate. If the state granted every tribe a sports betting license on top of what was negotiated with professional sports teams, there would be more than 30 licenses. “We did not know that the market would hold that. If a tribe went to market and shut its doors, that would be worse,” she said. Still, Jackson said she doesn’t expect tribes will make much money on sports- books. Hart disagrees, but with a caveat. “How have tribes done since the advent of sports betting? Very, very well. That’s the reality,” he said. “But we’re moving from a monopolistic environment into a competi- tive environment. You can lose money. A lot of these entities will go upside down.” The solution, according to Giles, is to maintain casino exclusivity and use sports- books as a bargaining chip to draw casino traffic on reservations — not as a cash cow. “The amount of money generated in sports betting is not a lot. It’s not worth it,” he said. Arizona’s new sports betting market has its issues but still offers opportunities, Giles added. “In the rush to get to sports betting, we need to realize that sports betting is an amenity to draw people into our casino hotels. This is only the first inning,” he said. A gambler at We-Ko-Pa Casino Resort. Elias Weiss
