The Arizona Coyotes might soon lose “Arizona” from their name.
Last month, Tempe voters decisively rejected the team’s $2.1 billion entertainment complex proposal, which included a new home arena for the Coyotes. The team had high hopes for a favorable outcome, but residents turned out in record numbers to voice their disapproval.
Following the vote, a team source was quoted by ESPN.
"There's no Plan B at this point."
After the Coyotes’ defeat at the ballot box, their betting partner, Sahara Bets, may also be leaving Arizona.
Tempe voters soundly defeat plan to build entertainment complex for Coyotes
Although betting on the Coyotes is not considered safe, Arizona online sports betting scene has been thriving. The Phoenix Suns reached the Western Conference semifinals, and the MLB's Arizona Diamondbacks are currently leading the National League West Division.
The Coyotes’ entertainment complex required approval from three ballot propositions—301, 302, and 303—but all three were rejected.
Propositions 301 and 302 were defeated with 56% voting against and 44% in favor, while Proposition 303 failed with 57% against and 43% in favor, according to AZCentral. Early voter turnout was so high that there weren't enough same-day ballots to change the outcome for the Coyotes.
This defeat follows a series of setbacks for the Coyotes over the years.
- A 2009 bankruptcy filing, which resulted in temporary ownership by the NHL
- A bitter split from Glendale
- Various potential relocations that all fell through, including one to the Arizona State University campus
- Missing the playoffs 10 of the last 11 seasons
The Coyotes now need to find a new location, but it's unclear where they will go next. The failure of their Tempe initiative also puts another Arizona entity at risk: Sahara Bets Sportsbook.
Sahara Bets could be high and dry if Coyotes leave the state
Arizona sports betting law permits up to 20 sportsbook licenses: 10 for sports franchises and 10 for the state's Native American tribes. Sahara Bets is currently part of the former group through its partnership with the Arizona Coyotes. But what happens if the Coyotes leave the desert for a colder climate?
Firstly, Sahara Bets and the Coyotes would likely have to part ways. It wouldn’t be due to any animosity, just out of necessity. An Arizona sportsbook operator has no use for a partnership with an out-of-state team.
Without a partner, Sahara Bets can't operate in Arizona, as the state requires operators to have a licensed partner. If the Coyotes leave, Sahara Bets would be left without one.
The situation is further complicated by the fact that both Sahara Bets and the Arizona Coyotes are owned by Alex Meruelo. Sahara Bets was a natural partner because Meruelo owns the team. Other organizations might not be as eager to partner with a lesser-known brand.
Sahara Bets does have a few options in Arizona
Last month, PlayInAZ considered the potential candidates for the vacant license left by Fubo Sportsbook's exit from Arizona. If the Coyotes leave, their sportsbook license spot would become available. This could be advantageous for Sahara Bets. Despite the Coyotes potentially moving out of state, there are still Arizona sports franchises that have not yet partnered with a sportsbook.
Here's a quick look at the franchises that do have partners:
- Phoenix Suns: FanDuel
- Arizona Diamondbacks: Caesars
- Phoenix Mercury: Bally Bet
- Arizona Cardinals: BetMGM
- Phoenix Raceway/NASCAR: Barstool
- PGA/TPC Scottsdale: DraftKings
- Arizona Rattlers: (BetRivers)
Arizona sports fans will quickly recognize that this includes most of the well-known teams in the state. Sahara Bets could explore remaining options like Phoenix Rising FC of the USL, the Tucson Saguaros of the Pecos League, or the Tucson Roadrunners of the AHL. However, it’s uncertain if any of these teams would be interested in a sports betting partnership or license.
The financial aspect is also significant. The Arizona Department of Gaming requires an initial licensing fee of $750,000, plus a $100,000 application fee, and an annual renewal fee of $150,000. This means Sahara Bets would need to partner with an organization capable and willing to pay these fees upfront.
Additionally, two new casinos are coming to Arizona. One in Phoenix, the Desert Diamond, operated by the Santan Mountain Casino in Chandler, run by the Gila River Indian Community. Both tribes already have partnerships: the Tohono O'odham Nation operates Desert Diamond, and the Gila River Tribe is partnered with BetMGM Sportsbook AZ.
Since all 10 tribal licenses are already allocated, Sahara Bets would need to find a sports franchise to partner with.
Vultures circling?
With one sportsbook license available after Fubo’s departure and another potentially opening up if the Coyotes leave Arizona, there could be intense competition among operators. Sahara Bets might join this fray.
Other potential operators eyeing the Arizona market include PointsBet (recently acquired by Fanatics for its US assets), Betr, Sports Illustrated, and several others. Due to the limited number of licenses, Arizona remains a fiercely competitive market.
If the Coyotes depart, we could witness a rush and possibly a bidding war to secure a foothold in this lucrative opportunity.
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