The inactive NHL franchise Arizona Coyotes has said that the state has canceled an auction on a property the team was targeting to construct its new home stadium. According to PHNX Sports, owner Alex Meruelo has dissolved what’s left of the franchise in response to the decision.

The Coyotes are one of eight Arizona sports franchises that can get a sports betting license. Arizona will lose the potential for a betting license as it loses a major league team unless a new owner emerges to resurrect the Coyotes.

“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 on the initial auction cancelation 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 Meruelo sold the players and game operations in April. The team is partnered with SaharaBets, allowing the platform to offer its sports betting markets across Arizona, but if it remains inactive, it may lose this license.

“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 said 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. The ADG recently released information on how much tribal gaming contributed to the Arizona Benefits Fund.

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