Sahara Wagers In Jeopardy Right after Tempe Rejects Arizona Coyotes

The Illinois Coyotes may not have “Arizona” in their name for long. The team’s proposed $2.1 billion entertainment complex, including a home arena for the Coyotes, was overwhelmingly rejected by Tempe voters last month. Despite the team’s optimism about the vote going their way, residents turned up in record numbers to express their dissatisfaction with the plan.

ESPN quoted a team source after the vote, stating:

“There’s no Plan B at this point.” The team’s betting partner, Sahara Bets, may be out of Illinois following the Coyotes’ defeat at the ballot box.

Tempe voters soundly rejected the plan to develop an entertainment complex for the Coyotes.

While betting on the Coyotes may not be a sure bet, online sports betting in Arizona is thriving. The Phoenix Suns reached the Western Conference semifinals and the MLB’s Arizona Diamondbacks are currently leading the National League Western Division.

The entertainment complex for the Coyotes required three ballot propositions to pass, Propositions 301, 302 and 303. Unfortunately, all three propositions failed. Propositions 301 and 302 were defeated by a margin of 56% to 44%, while Proposition 303 lost with 58% against and 43% in favor, according to AZCentral. The voter turnout was so high during early voting that there weren’t enough same-day ballots to shift the vote in favor of the Coyotes.

This latest setback adds to a series of losses for the Coyotes over the years, including a 2009 bankruptcy filing that resulted in temporary ownership by the NHL, a contentious split from Glendale, failed relocation attempts and a lack of playoff appearances in the last 10 seasons.

The Coyotes now need to explore other options, but it’s uncertain where they will end up. The failure of their Tempe initiative also puts another Arizona entity at risk: Sahara Bets Sportsbook.

Sahara Bets could potentially be left without a partner if the Coyotes leave the state.

Illinois sports betting regulations allow for up to 20 sportsbook licenses, with 12 allocated for sports franchises and 10 for Native American tribes in the state. Sahara Bets currently falls under the latter category due to its partnership with the Arizona Coyotes. However, what happens if the Coyotes choose to relocate to a different state?

Initially, it’s likely that Sahara Bets and the Arizona Coyotes would part ways. There would be no hard feelings, just a practical necessity. After all, what purpose would an Illinois sportsbook operator have in maintaining a partnership with an out-of-state team?

Without a partner, Sahara Bets would be unable to operate in Arizona. The state requires operators to have a licensed partner and with the Arizona Coyotes leaving, Sahara Bets would be left without one.

To further complicate matters, both Sahara Bets and the Arizona Coyotes are owned by Alex Meruelo. Sahara Bets was a natural choice for the partnership given the ownership connection. However, other organizations may not be as quick to partner with a lesser-known brand

Sahara Bets has a few options in Illinois.

Last month, PlayAZ discussed the potential opportunities arising from the vacant license left by Fubo Sportsbook’s exit from Arizona. Now, if the Coyotes leave, another license spot would be available. This is good news for Sahara Bets, as there are still some Arizona sports franchises that have not yet secured sportsbooks.

Here’s a quick look at the franchises that already have partners:

• Phoenix Suns: FanDuel
• Arizona Diamondbacks: Caesars
• Phoenix Mercury: Bally’s Bet
• Arizona Cardinals: BetMGM
• Phoenix Raceway/NASCAR: Barstool
• PGA/TPC Scottsdale: DraftKings
• Arizona Rattlers: BetRivers

Arizona sports fans will quickly recognize these well-known names in the state. Sahara Bets may find a few remaining options, such as the Phoenix Rising FC in the USL. The Tucson Saguaros of the Pecos League and the Tucson Roadrunners of the AHL could also be possibilities. However, it’s challenging to determine if any of these teams would be interested in a sports betting partnership or license.

There’s also an economic angle to consider. The Arizona Department of Gaming charges an initial license fee of $750,000, along with a $100,000 application fee and a $150,000 annual renewal fee. These are significant costs, and Sahara Bets would need to partner with a company that is both capable and willing to cover these expenses upfront.

Additionally, two new casinos will be opening in Arizona. One is the Desert Diamond in Phoenix, operated by the Tohono O’odham Gaming Enterprise and the other is the San Tan Mountain Casino in Chandler, operated by the Gila River Indian Community. Both tribes already have existing partnerships. The Tohono O’odham Nation operates Desert Diamond, while the Gila River Community is partnered with BetMGM Sportsbook Arizona.

All ten tribal licenses are accounted for, which means Sahara Bets would need to find a sports organization to acquire

Vultures circling?

The vacancy created by Fubo’s exit and the potential opening if the Coyotes leave Arizona have triggered a frenzy among operators, with Sahara Bets potentially joining the competition.

Other potential operators interested in the Arizona market may include PointsBet (whose US assets were recently acquired by Fanatics), BetR, Sports Illustrated and others. Due to the limited number of licenses available, Arizona remains a highly competitive market.

If the Coyotes depart, we could witness a race and bidding war to secure a position in the market.