Arizona Tribes Explore Online Casino Legalization

Tribal leaders in Arizona are beginning to explore the possibility of legalizing online casino gaming, a move that could reshape the state’s gambling landscape. At the recent Arizona Indian Gaming Association Expo, legal experts and tribal representatives convened to discuss the opportunities and challenges of expanding into iGaming. While talks remain in the early stages, the interest among tribes is growing, especially following legal developments at the federal level.

The discussion comes two years after Arizona tribes agreed to share the sports betting market with professional sports teams, a deal that left many feeling shortchanged. Now, tribal leaders are keen to ensure any iGaming framework secures a more advantageous position.

 

The Initial Steps Toward Online Casinos

The panel, titled “Sports Betting to iGaming: Navigating the Future of Indian Gaming,” featured attorneys Scott Crowell and Stephen Hart, along with Paula Hart from the U.S. Department of Interior. They provided tribal leaders with insights into the legal and regulatory considerations of online casino gaming under the Indian Gaming Regulatory Act (IGRA).

“There’s nothing imminent,” Stephen Hart noted, emphasizing the exploratory nature of the discussions. “But there is interest, particularly because of the West Flagler case, and tribes are trying to sort out what that means for their next steps.”

The West Flagler case upheld the Seminole Tribe of Florida’s statewide online gaming model under IGRA, a ruling that could pave the way for Arizona tribes to pursue similar arrangements. Arizona tribes are determined not to repeat the perceived shortcomings of their 2021 sports betting agreements. In that deal, tribes shared the market equally with professional sports teams but secured only a small portion of the revenue—about 5%.

“Certainly, I think most Arizona tribes have remorse over the way the sports wagering agreements played out,” said Crowell. The tribes had agreed to the deal in exchange for expanded brick-and-mortar gaming rights, which ultimately proved lucrative for some. However, the outcome underscored the importance of maintaining exclusivity in future negotiations.

 

Lessons from Other States

During the panel, Hart highlighted Michigan’s successful online casino model, which has become a benchmark for tribal gaming. Michigan tribes operate iGaming under a commercial agreement with the state, which has allowed them to thrive in a population of 10 million—similar to Arizona’s nearly 8 million residents.

This example served as a reminder of the potential for online casino gaming to generate significant revenue if handled correctly. “Michigan provides a parallel for what Arizona tribes could achieve,” Hart explained.

 

Arizona tribes are beginning to explore online casinos, aiming to avoid past sports betting missteps and secure stronger exclusivity agreements.

 

Looking Ahead

While no formal negotiations have begun, there are signs that tribes are seriously considering the move to iGaming. Crowell noted that hallway conversations at the Expo revealed growing interest in the topic.

“There’s a way to do iGaming while avoiding the mistakes made in the sports wagering arrangements,” Crowell said.He believes that Arizona’s 22 tribes are likely to come together to establish a unified strategy for iGaming exclusivity. As discussions progress, the focus will remain on securing a framework that protects tribal interests, maintains exclusivity, and maximizes revenue. The process may take years, but the groundwork being laid today could shape the future of gaming in Arizona.

The potential legalization of online casinos in Arizona represents a critical juncture for the state’s tribal gaming community. While still in its infancy, the dialogue reflects growing interest in adapting to the evolving gaming landscape. By learning from past agreements and leveraging successful models in other states, Arizona tribes aim to ensure iGaming becomes a valuable and equitable part of their gaming portfolio.