By Heidi McNeil Staudenmaier and Amanda Z. Weaver, Ph.D.
In late February, 2024, Arizona Attorney General Kris Mayes issued a formal opinion (“Opinion”) regarding the 2021 Amended Tribal-State Gaming Compact and the effect of its exclusivity provision on historical horse race (“HHR”) betting. See Opinion No. I24-003. The Attorney General concluded that pari-mutuel wagering on HHR machines was subject to the Arizona Tribal-State Gaming Compact’s exclusivity provision.
HHR betting relies on the “use of an electronic device or terminal to place bets on completed horse races in which the bettors do not know the race’s outcome.” Id. Specifics are removed so that bettors cannot identify the specific time and place of the race’s original running, or the horse’s identity; however, some statistical data regarding the horses are provided.
In her analysis, Attorney General Mayes noted that device technology has evolved on HHR machines, such that their “appearance, graphics, animation, and sound . . . is nearly identical to traditional slot machines and similar gaming devices that rely on random number generators.” Id. (internal quotation marks and citation omitted). However, while traditional slot machines use a random number generator, HHR machines have a “game path predicated on a type of pari-mutuel wagering.” Id.
The Opinion’s analysis of the 2021 Amended Tribal-State Compact in Arizona, which governs gaming on tribal lands pursuant to the federal Indian Gaming Regulatory Act (“IGRA”), addresses the three classes of gaming under the IGRA. Class III, per the Opinion, includes pari-mutuel horse wagering and “any electronic or electromechanical facsimiles of any game of chance or slot machines of any kind.” Id. (quoting 25 U.S.C. § 2710(d)(1)).
The Arizona Tribal-State Compact provides for tribes’ exclusive right to conduct certain types of gaming activities on tribal lands, as well as tribes’ contribution of a portion of their revenue from gaming activities to the State, and limitations on the scope of permitted gaming. The Compact also provides that the State not permit any non-tribal entity from engaging in certain types of gambling, including Class III gaming. If the Arizona Legislature permits a non-tribal entity from engaging in these forms of gaming, then tribes “may be released from certain of the Compact’s gaming limitations and may reduce their contributions to the State.” Id.
The Attorney General’s office was previously asked to opine on whether non-tribal entities engaging in HHR betting would trigger the Tribal-State Compact’s exclusivity provision. Id. The exclusivity provision is triggered, in relevant part, where a non-tribal entity operates “any form of Class III Gaming not authorized under the Compact, other than gambling authorized by state law as of May 1, 2002.” Id. (citing A.R.S. § 5-112). The Attorney General concluded in a 2018 opinion that HHR machines did not constitute a legal form of pari-mutuel wagering authorized as of May 1, 2002, and if HHR machines were authorized, the Compact’s exclusivity provision would be triggered.
In 2021, the State of Arizona entered into an amended Tribal-State Gaming Compact with the tribal nations in Arizona, which, among other changes, provided additional exceptions to gaming activity that could be conducted without triggering the exclusivity provision, including (1) off-reservation event wagering; (2) off-reservation fantasy sports; (3) lottery keno; and (4) lottery draw games. HHR devices were not expressly included within these exceptions. The Opinion reconfirmed the 2018 opinion’s analysis that HHR devices would trigger the exclusivity provision, and they did not fit into any of the new exceptions to the exclusivity provision under the 2021 amended Compact.
HHR devices have been gathering attention in other states as well. For example, a court in Louisiana issued a ruling on February 27, 2024, that a law passing HHR betting was unconstitutional and could not be conducted in any parish of the state until voters in such parish “approve such gaming by a majority vote . . .” under the Louisiana Constitution.
Fremin, et al. v. Boyd Racing, LLC, et al., Docket No. C-725,007 (19th Judicial Dist. Ct., Parish of E. Baton Rouge, La., Feb. 27, 2024)
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UWF Introduces Free Certificate Program for Students Seeking Opportunities in the Sports Field
The University of West Florida has announced an initiative to “better prepare students for working in the sport/entertainment field,” according to a recently issued press release. “Many programs and faculty members are looking for micro credential or certification programs to better prepare their students for working in our industry.” UWF is offering the program for free.
“One of the most important elements of risk management, event execution, and facility management entails patron management,” said Dr. Gil Fried of UWF. “The various fights in the stands, banned items being snuck in, fans jumping over fences to enter a venue, intoxicated fans, and numerous other issues can impact fan experiences, patron safety, venue revenue, and even legal liability. That is where the Certificate in Patron Management (CPM) comes into play.”
The patron leader training program was developed over several years by the Patron Management Institute and has now come to fruition in a 17-module training program utilizing YouTube videos produced by Dr. Fried, also known as the Crowd Management Doctor. The videos each take around 20-25 minutes and can be watched in class or at a student’s own time. After watching the videos, students can take the 30-question quiz and if they pass with at least 80% on the quiz they become certified as patron leaders. Students are allowed two attempts to complete the quiz which utilizes randomly pulled questions from the test bank, so each exam is different. Students receive a certificate of completion once they are done and that is valid for two years. If a student does not pass the quiz on the first two attempts, they need to wait a month before they can retake the quiz again. Only students utilizing an edu email address can take the exam for free. The Crowd Management Doctor YouTube channel also has regular news stories, case studies, guest speakers, and other material to help reinforce the basics of patron management and why it is such a critical function.
Here is what one sport management professor had to say about the program:
“Game day operations, facility management and fan engagement continue to be a focus for Posts Universities Sport Management program. We are always looking for best in class certifications for our programs and learned about Dr. Fried’s Certificate in Patron Management. The modules within this program are perfectly suited for what the industry needs in emerging leaders in the event space. It’s also a fantastic learning opportunity for professionals who are looking to refresh and build upon their skills. From modules on active shooters to the nuances of foot traffic, the program is an end-to-end learning experience. Obtaining this certification sends a message that your students and/or your employees are serious about being a Patron Leader and care about best practice in facility management.” – Dr. Roger Caramanica, Program Chair Gaming and Sport Management
The YouTube videos can be reached at: https://www.youtube.com/@crowdmanagementdoctor/playlists You can find all the modules in the playlist under Patron Leader Training.
The quiz link is: https://www.flexiquiz.com/SC/N/PatronLeaderInstitute
