Scottsdale City Council authorizes seventh amendment to TPC, PGA Tour lease

Amendment grants the construction of new sportsbook wagering facility

Posted 6/11/21

At its June 8 city council meeting, Scottsdale officials approved another amendment to the lease and management agreement between the city, the Tournament Players Club of Scottsdale and the PGA …

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Scottsdale City Council authorizes seventh amendment to TPC, PGA Tour lease

Amendment grants the construction of new sportsbook wagering facility

With recent state legislation and city council approval, TPC and PGA Tour will move forward with the construction of a sportsbook wagering facility at the TPC golf facilities.
With recent state legislation and city council approval, TPC and PGA Tour will move forward with the construction of a sportsbook wagering facility at the TPC golf facilities.
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At its June 8 city council meeting, Scottsdale officials approved another amendment to the lease and management agreement between the city, the Tournament Players Club of Scottsdale and the PGA Tour.

The agreement, initiated in December of 1985, grants the latter two management and operation responsibilities of the city’s TPC golf facilities. 

Located on city parcels and Bureau of Reclamation land north of the Central Arizona Project Canal and east of Scottsdale Road, the facilities provide an “excellent” golf experience to Scottsdale residents and visitors. 

According to city documents, the term of the agreement is through 2035 with an option to extend another 25 years.

While that term is available to extend, the seventh amendment approved does not make that modification. 

Recent state legislation has allowed for the TPC and PGA to request the addition and construction of a sportsbook facility at the current TPC location.

House Bill 2772, which was passed this year, authorizes a limited number of event wagering licenses in certain sports facilities, including one that hosts an annual golf tournament on the PGA Tour.

“This addition will provide individuals the ability to place wagers on sports events and will include new dining facilities,” city documents outlined.

The approved amendment grants TPC and PGA Tour to direct the operations of sportsbook wagering at the TPC golf facility once all the appropriate licenses have been obtained.

TPC and PGA Tour have committed to completing the construction of the facility by Dec. 31, 2023, but aim to have it finished before the 2023 Phoenix Open, documents show.

“The construction commitment and goal are subject to commercially reasonable efforts [and] the construction deadline may be extended by one year,” city documents stated.

Before its completion, however, temporary spaces for sports wagering can take place at an additional golf facility property during the days when the Phoenix Open takes place.

Additionally, the city will collect fees from the facility including a percentage of gaming income starting at 2% escalating to 5% in January of 2026, an initial $100,000 licensing fee and an annual fee of $25,000 starting in 2024. 

The licensing fee will be made in two separate payments, one in September of this year and one when the certificate of occupancy has been accomplished for the retail sportsbook addition.

The city’s parks and recreation department and capital project management will oversee and work with the TPC and PGA Tour throughout the project until its completion. 

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