The inactive NHL franchise Arizona Coyotes has said that the state has canceled an auction on a property the team was targeting to construct a stadium.

The Coyotes are one of eight Arizona sports franchises that are allowed to get a sports betting license, but if the team fails to find a permanent venue and become active again, it risks losing its right to a betting license.

“Today, after a year of planning and meeting every obligation required under Arizona law, the Arizona State Land Department unilaterally canceled the auction that was scheduled to occur on 27 June for the site that has been identified as the future home of the Arizona Coyotes,” a statement from the team read. “This unprecedented action by the state of Arizona seriously jeopardizes the future of NHL hockey returning to the desert.”

The Coyotes have been classified as an inactive franchise since owner Alex Merulo sold the players and game operations in April. However, Merulo still holds the name, team intellectual property and record rights. The team is partnered with SaharaBets, allowing the platform to offer its sports betting markets across Arizona. However, it may lose this license if it remains inactive.

“Regarding the Coyotes’ license in Arizona, the Arizona Department of Gaming sent the Coyotes correspondence regarding the status of licensure in Arizona,” the Arizona Department of Gaming commented via email. “ADG and the Coyotes are undergoing the appropriate administrative processes regarding action on this license. ADG has no comment concerning the NHL’s recognition of the Coyotes and has not been contacted by the NHL.”

The next ADG meeting to discuss licensing will be on July 8, when one tribal license and one pro license are expected to be awarded.

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