1800s – Gambling before Arizona state’s existence
Gambling has existed in the AZ territory even before its formation as a state, particularly in Prescott, Tombstone, and Bisbee mining towns. Gambling halls and saloons offered poker, roulette, and faro. Another proof of the stage of games of chance is the famous O.K. Corral gunfight in Tombstone in 1881, related to a dispute over gambling debts being discussed.
Early 1980s – The Arizona Lottery
In 1912, Arizona became a state, and this is also the year when it outlawed all forms of gambling. In 1980, the Arizona Lottery Act was passed, setting up the State lottery. This act aims to fund state programs, support public education, and finance many public initiatives. The first lottery ticket was sold one year later – in 1981. Three Arizonans at the time claimed $10,000 cash prizes from the lottery.
1988 – The IGRA allows tribal casinos
In 1988, the US Federal government passed the IGRA (the Indian Gaming Regulatory Act), allowing state tribes to open their casinos. The tribes became free to operate gambling facilities on their reservations, which marked the beginning of tribal casinos in AZ.
1990s – Compact with Arizonan tribes
In May 1992, the U.S. Attorney in Phoenix made a series of raids and shut down tribal casinos with slot machines. The National Indian Gaming Commission ruled that tribes must have compacts to have functioning casinos. Later, Gov. Fife Symington signed compacts with 16 tribes over the following 18 months, giving them exclusive rights to offer slot machines and casino gaming.
November 2002 – the expansion of tribal casino gaming
Preposition 202’s passing expanded the number of tribal casinos and the types of games allowed to be offered in them in Arizona. It also extended the gambling compacts for another ten years. This revenue-sharing agreement between the government and the local tribes ensured stability for the industry and more profits for both. The situation with AZ gambling sites’ legal functioning remained intact for almost 20 years. Instead, the state legislation focuses on sports betting, daily fantasy sports, and extending and expanding tribal gaming agreements.
2010-2020 – Lottery extension and legal sport betting
In March 2010, the Arizona State Lottery Commission extended the lottery’s contract until 2035. Nine years later, in 2019, two senators – Steve Pierce and Sonny Borrelli, tried to introduce the first of their bills to pave the way for lawful and regulated sports betting in Arizona.
In 2020, the HB 2813 bill was passed for legalized sports betting at Arizona casinos. Racetracks in the state would also be allowed to provide legal bets on sports. Arizona’s tribes objected to the bill as it required them to get special permission to open their retail sportsbooks. SB 1525 bill was revamped the same year to resolve some of the issues with the earlier HB 2813 bill. As a result, Arizona’s 24 tribal casinos got the green light to run retail sports books without permission. However, mobile and online sports wagering remained prohibited.
April 2021 – The legalization of sport betting, DFS, and some games
Thanks to allowing non-tribal sportsbook operators in Arizona, the current rules on tribal casino gaming became relaxed. Under these new laws, Native American casinos could expand and introduce more slots and table games.
In April 2021, Arizonan Governor Doug Ducey signed regulated sports betting via HB 2772 into law. The bill allowed tribal and non-tribal organizations to apply for licenses to run retail sportsbooks and online betting platforms.
Online and mobile sports betting, keno, and daily fantasy sports also became legal and regulated. Non-tribal operators could offer services too. With the making of Daily Fantasy Sports legal, Stat Hero opened the first DFS sportsbook in the Copper State. The HB 2772 bill also modernized Class III casino games such as craps, baccarat, and roulette.
May 2022 – Online sportsbook reopens
In April 2022, an Arizona player won a $473 million Powerball jackpot. In June of the same year, the Arizona Department of Gaming opened the licensing process for online sportsbooks again. With 17 local regulated online sports betting providers currently in operation, and since the state law permits up to 20, three more could launch.
May 2023 – Latest gambling developments
The latest updates of May 2023 reveal that no further effort has been made to legalize Arizona gambling sites. The signed 10-year compact with all 22 state tribes expires in May 2031.