SCOTTSDALE, Ariz. — The PGA Tour and DraftKings plan to open a new sportsbook across from the TPC Scottsdale golf course to sports fans and gamblers by fall 2023.
The PGA Tour operates the 36 holes of golf, including the 18-hole course that is home to the WM Phoenix Open, on land owned by the city.
DraftKings released details of the plan Tuesday, which call for a sports lounge with about 390 seats, a high-end restaurant, more than 3,400 square feet of video walls and screens, and an outdoor patio area with VIP cabanas and fire pits.
The proposal also calls for about 40 kiosks and seven ticket windows where bettors can wager on any sporting event on top of being able to use mobile apps to bet.
DraftKings did not release hours of operation but officials there said the establishment is expected to be open daily and remain open into the evening so that customers may enjoy all major sporting events.
Michael Kibort, DraftKings senior director of retail sportsbook, called the plan a “one-of-a-kind” that will bring a unique social experience for customers.
“What we have put together is a very unique viewing and entertainment experience with over 3,000 square feet of video screens throughout the venue and it also has a unique indoor and outdoor feel with a little bit of something for everyone,” he said.
The Arizona Legislature passed a bill one year ago that regulated sports betting in the state and allowed 20 sports-betting license holders, including the PGA, to contract with online wagering companies such as DraftKings.
DraftKings was the most popular app in Arizona for sports betting with gamblers placing $173 million in wagers with the app in January, according to the Arizona Department of Gaming.
Next to DraftKings, the state gaming department reported that FanDuel was the second most popular app with about $150 million in total wagers that month.
FanDuel and Caesars Entertainment, which reported $72.4 million in mobile wagers in January, already have in-person sportsbooks in downtown Phoenix.
Scottsdale City Council approves plans 6-1
DraftKings’ and PGA Tour’s plans were initially approved by the Scottsdale City Council earlier this month in a 6-1 vote.
Councilmember Linda Milhaven said PGA Tour has been a wonderful partner to the city and thanked the organization.
“This just makes our great partnership even better. I’m excited to see what you are going to build here, I think it will be a world-class facility we can all be proud of,” she said.
Councilmember Kathy Littlefield cast the lone vote against it.
Littlefield, who supported previous plans to build the sportsbook on the same land where the course’s clubhouse is located, said the organizations’ plans have expanded too much and would negatively impact the neighborhood around it.
The site where the new sportsbook will go is surrounded by residential condominiums, the golf course and its amenities, and the Scottsdale Sports Complex, where youth soccer teams play.
“From a small internal room in the back of the existing clubhouse, we are now being asked for a whole new complex, and it’s unfortunate that this new building is very close to an existing neighborhood and a large park and children’s sports facility,” Littlefield said.
She also criticized the amount of parking the sportsbook venue would offer on-site, saying 122 spaces wouldn’t be enough to serve almost 400 seats.
“Where will the overflow of cars park? In front of the houses along the street? In public parking lots that are supposed to be used for the park use and children who come to play the games in the facilities? Is the city now providing free parking for a gambling house? That’s my question,” she said.
The architect of the project, Michael Marcoux, told the council the project complies with the city’s parking requirements and there is nearby parking available that serves the golf course as well as valet parking within walking distance in case of parking overflow.
The city entered an agreement in 1985 for the PGA Tour and Tournament Players Club of Scottsdale (TPC) to lease and manage the golf course.
The council amended the agreement in December, stipulating that the city will receive a portion of gaming revenue from the sportsbook or a minimum annual payment of $170,000 in 2023 and 2024 and $225,000 in 2025. The minimum rent fee will increase by 3% yearly from 2026 until the end of the agreement.
Most attended PGA Tour stop
TPC Scottsdale was the sixth club in the PGA Tour’s TPC Network and the Phoenix Open is the tour’s largest annual golf event in terms of attendance, drawing visitors from around the world to Scottsdale. The tournament usually brings in crowds of more than 700,000 for the week.
The Phoenix Open usually takes place in the last week of January or the first two weeks of February.
Construction at the site started in 1986 after the Thunderbirds, the host organization for the tournament, started looking for a new tournament site with the help of then-PGA Tour Commissioner Deane Beman. At the time, former Scottsdale Mayor Herb Drinkwater proposed using city land for the golf course.
The first Phoenix Open tournament at the Scottsdale site was in 1987.
While the sportsbook adds another attraction, it won’t be open during the Phoenix Open — at least not for in-person betting. The facility will be used for hospitality during the tournament, according to a DraftKing spokesperson, who said more details on that would be released later.
The Republic’s Ryan Randazzo contributed to this article.