Arizona regulator: Our stance has not changed on prediction markets

As Director, what are your main priorities in regulating not only Tribal gaming in Arizona, but gaming as a whole? 

We've really focused on consumer protection. With the legalization of event wagering, fantasy sports and, at the same time, the growth of illegal online gaming. It's been a high priority for us. We've really taken a proactive approach to the enforcement of illegal gambling, as well as the public education side of things. We have numerous campaigns we've been putting out, and it all goes back to making sure people are aware of what is legal and what protections they have. That's really been a strong focus for us over the last few years.  

What do you believe are the most prominent threats to Arizona gaming today? 

Great question. It goes back again to illegal gambling. There's so much access to so many apps and websites. Where we've put a lot of our resources is in the enforcement and investigation of illegal gambling. 

Given the Arizona Department of Gaming issued a warning to operators regarding any involvement with prediction markets in September, are you able to provide a current stance on the matter? 

Our stance hasn't changed. We've had open dialogue with our stakeholders after sending that letter. We don't want to put the hammer down on our stakeholders. We invite dialogue with them. We're working through a difficult time right now where you've got what we consider a form of gambling that is not licensed and regulated – but should be. Our duty at the Department is to make sure we are enforcing Arizona's gaming laws. We try to make that clear with our stakeholders. We always invite dialogue if there are changes that are happening in their world we need to be communicating about. But our stance hasn't changed.  

Our view is that prediction markets are a form of gambling that needs to be regulated in the state of Arizona. When we talk about those contracts, one thing we always note is Arizona does have a whole definition about exchange wagering. Exchange wagering is a form of event wagering that can be licensed under the Department. We’re always open to talking with our stakeholders about ways they can develop new offerings for their patrons and we're willing to have those discussions to ensure it is complying with Arizona law.  

Do you see a future where Arizona residents could trade sports-related events contracts in a regulated and safe manner?  

Yeah, whether it's called exchange wagering or something else, I think there is that dialogue. I can't get into the details because, to be honest, that's not my expertise. We have a team that can really dive into ‘will this work or not?’ My overall thought process for the Department is we're open to those discussions. We're open to working with our stakeholders. Our legislature put these laws in place to make sure there were safeguards for responsible gaming and problem gambling, but also that the state and local communities are benefiting from this. We're always open to see if that's something that can work for our state and for our licensees.  

How do issues related to illegal gambling also impact Tribal gaming and the communities in which they're meant to serve? 

Illegal gambling impacts the Tribes just as much because Tribes in Arizona have the right to operate casinos in the state. Anytime there's a type of gambling that's occurring, it may be happening on Tribal lands, which impedes Tribal jurisdiction. Tribes have authority under the Indian Gaming Regulatory Act. Also, it's taking away potential revenue from Tribes in our local communities and the state too, because of the revenue-sharing agreement with Tribes through the compact. The states and Tribes' views are aligned when it comes to illegal gambling and the damage it's doing to both.  

What type of responsible gambling resources does the Arizona Department of Gaming offer to residents?  

I’m glad you asked this. This has also been one of our high priorities in recent years. We're a little bit unique compared to maybe some other jurisdictions. We have a Division of Problem Gambling within the Department, so not only do we regulate all these industries, but we actually have the entity that provides education, prevention and treatment services to Arizonans. Whereas, sometimes, you see that within maybe a Department of Health Services in another state. It's within the regulator, the Department of Gaming; and we have a strong team that provides anything from educational outreach to engagements that we keep track of.  

We provide training to ensure we have behavioral health clinicians that are well versed in problem gambling. We provide subsidized treatment to Arizonans that are seeking services; we have a 1-800 number; a separate website with all types of resources. That's something I'm excited to expand upon. We just awarded the state's first-ever peer support for problem gambling program and are super excited, as that will be launching in the next few months. That's a huge step in a big initiative that our Division of Problem Gambling is moving forward with.