Amid a cloud of uncertainty, the Arizona Coyotes’ future remains a conundrum both on and off the ice. As per the latest developments, the Arizona Department of Gaming (ADOG) has not been reached out to by either the Coyotes or SaharaBets regarding any change in status following the franchise’s transition. The National Hockey League (NHL) has labeled the Coyotes franchise as “inactive” after a rather unconventional agreement where current owner Alex Meruelo retains rights to the team name, intellectual property, records, and the AHL Roadrunners affiliate franchise, although a sale to a Utah-based group has gone through.
With no formal communication from the Coyotes or SaharaBets, ADOG seems to have its hands tied, leaving their event wagering site active. The state legislature may have to step in to address the ambiguity, potentially revising language to stipulate that an active team presence is required for an Arizona event wagering license to be maintained.
An ADOG spokesperson has acknowledged the awareness of discussions surrounding the Arizona Coyotes but highlights the absence of any official notice from the team or its sports betting designee. The law of the land awards Arizona event wagering licenses to professional sports franchises and Native American tribes, having set aside 20 licenses—with an equal split for sports teams and tribes.
Despite the provision for 10 professional sports team licenses, only eight have been claimed thus far. No additional franchises in Arizona seem to fit the criteria, which mandates that only teams competing in “the highest level” of their sport within the state qualify. Exemplifying this, major professional sports leagues, the PGA Tour, NASCAR, and the Arena Football League have managed to secure licenses. Yet for the United Soccer League’s Phoenix Rising, an initial denial in 2021 was followed by a decision not to reapply in 2023.
The issue of license allocation further muddles as all ten tribal licenses have been snapped up, with excess tribal applications during the first licensing round in 2021. Market consultant Brendan Bussmann has pointed out the odd situation created by a law that promises more licenses than it awards, especially for a franchise he describes as a “tumbleweed in the desert” regarding the Coyotes.
Despite the inactivity, Alex Meruelo’s ownership of the franchise permits him to operate SaharaBets, his wagering platform that has been live for two years, contributing $48,000 in state taxes. The NHL still recognizes Meruelo as the Coyotes owner and has provisioned a five-year window for the team’s reactivation. As it stands, owning an inactive franchise still affords him event wagering operation rights in Arizona—a situation that may need legislative attention to close potential loopholes.
Meanwhile, a transformation has occurred as the players and staff of the Coyotes have transitioned to a new expansion team in Utah, with Ryan and Ashley Smith purchasing the roster, draft picks, and hockey operations to the tune of $1.2 billion. This team is set to re-enter the game in the fall under a new banner.
All this leaves Arizona with two unclaimed professional sports franchise licenses, and one in the hold of a team no longer competing in the state. This reveals a legislative intricacy many tribes are watching closely, for it has left them out of the running for a greatly sought-after event wagering license.
As the sands of the legislative and sporting landscapes shift, Arizona finds itself at a novel crossroads of franchise activity, sports betting, and tribal interests—a complex puzzle that will demand clear legal and regulatory answers in the not-too-distant future.
