. In Home Stretch, Senate Amends Historic Horse Racing Bill To Include Sports Betting

In Home Stretch, Senate Amends Historic Horse Racing Bill To Include Sports Betting

Written By Martin Harris on February 26, 2021Last Updated on January 30, 2023

Many states, including Arizona, have not yet made sports betting legal. However, politicians and other serious events have given the possibility a lot of thought.

Currently, the future of legal sports gambling in Arizona remains uncertain. Regulations that could enable this have technically advanced, at the very least. They have passed through a council and are now under consideration by the state Senate.

Interestingly, the future of sports betting is now tied to a unique gambling legislation aimed at reviving traditional horse racing in the Grand Canyon State.

Arizona sports gambling laws were introduced in both tanks.

Earlier this month, a bill proposing the legalization of both retail and online sports betting was introduced by Arizona House Representative Jeff Weninger, with support from both sides of the political aisle. The proposed legislation would grant Arizona’s federally recognized tribes the authority to open sportsbooks in their casinos and to initiate and run online sportsbooks.

The tribes were permitted to acquire up to 10 sports gambling licenses owing to the costs. Furthermore, an additional 10 licenses could be granted to commercial sports organizations in the state, such as professional entities like the Arizona Cardinals and Arizona Diamondbacks. The legislation would also allow off-track betting sites to begin providing keno and daily fantasy sports.

Sen. Thomas Shope introduced a similar bill in the Senate. Both bills would require the consent of the tribes to move forward. In the meantime, Gov. Doug Ducey, a champion of playing expansion, continued his attempts to gain this approval as he renegotiated the tribal-state compacts that were due to expire in 2022.

The new combined expenses incorporate historical horse racing and sports betting.

As discussions on various bills continued, Sen. David Gowan introduced a standalone bill seeking to legalize historic horse racing (HHR) in the state.

Also known as historical horse racing or “instant racing”, this practice involves betting on previously run horse races via an electronic video terminal. Although these activities often resemble video games in their frequent play, they are regulated by the same pari-mutuel betting laws that allow horse race betting in jurisdictions where such machines are legal.

Proponents of the bill assert that the authorization of HHR machines would result in thousands of new jobs and generate new state tax revenue estimated between $100 to $140 million. The proposal has garnered backing from the state, the horse racing industry, and several other businesses.

The bill, which permits non-tribal race tracks and off-track betting (OTB) sites to offer gambling, might face opposition due to cultural interests. Supporters of the bill clarify that it specifically limits its impact on revenues from tribal gaming. They also note that historical horse racing effectively falls under the state law allowing pari-mutuel betting, which predates tribal-state agreements.

However, what will the nations claim?

This week, the causes of sports betting legislation and the historic horse racing bill were combined when the former was added as an amendment to the latter. The Senate Appropriations Committee narrowly passed the unified bill, SB 1794, with a vote of 5-4-1 on Tuesday. The Senate Rules Committee then unanimously approved the bill and forwarded it to the entire Senate the following day.

The Senate has not yet scheduled a reading to explain SB 1794.

What are the chances that the newly merged bill in Arizona, which permits both traditional horse racing and sports betting, will advance in the future? Probably quite high.

The state has the potential to implement SB 1794 as it is, provided the tribes’ consent is not granted. This action would contradict current tribal arrangements. It suggests that the renegotiated compacts must permit non-tribal bodies to facilitate play, as stated in SB 1794.

Although both historical horse racing and sports betting have their advocates, the challenges they could pose for countries seem significant. Indeed, incorporating historical horse racing into the mix might harm sports betting. This is especially true considering that unlike other institutions, the tribes currently show no specific interest in HHR.

Regardless, all interested parties must wait until the current legislative session concludes in late April to see if the Senate voted on the act.

AP / Morry Gash photo
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