Bill Text: AZ SB1575 | 2024 | Fifty-sixth Legislature 2nd Regular | Engrossed
Bill Title: Racing; boxing; transfer; gaming commission
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed) 2024-04-04 - House Committee of the Whole action: Do Pass Amended [SB1575 Detail]
Download: Arizona-2024-SB1575-Engrossed.html
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House Engrossed Senate Bill
racing; boxing; transfer; gaming commission |
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State of Arizona Senate Fifty-sixth Legislature Second Regular Session 2024
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SENATE BILL 1575 |
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An Act
amending sections 5-101, 5-601, 5-602, 5-602.01 and 5-603, Arizona Revised Statutes; repealing section 5-604, Arizona Revised Statutes; amending section 5-605, Arizona Revised Statutes; amending title 5, Arizona Revised Statutes, by adding chapter 6.1; amending sections 5-1201 and 5-1301, Arizona Revised Statutes; repealing sections 41-3024.28 and 41-3026.04, Arizona Revised Statutes; amending title 41, chapter 27, article 2, Arizona Revised Statutes, by adding section 41-3034.01; appropriating monies; relating to gaming.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 5-101, Arizona Revised Statutes, is amended to read:
5-101. Definitions
In this article, unless the context otherwise requires:
1. "Additional wagering facility" means a facility that is not the enclosure in which authorized racing takes place but that meets the requirements of section 5-111, subsection A and is used by a permittee for handling pari-mutuel wagering.
2. "Advance deposit wagering" means a form of pari-mutuel wagering that allows a person to deposit monies in advance in an account with an advance deposit provider and use the monies to pay for pari-mutuel wagering on live or simulcast racing that the advance deposit pari-mutuel wagering permittee accepts or makes.
3. "Advance deposit wagering provider" means a betting system or multijurisdictional wagering provider that is authorized to conduct advance deposit wagering pursuant to this article.
4. "Applicant" means a person, partnership, association or corporation placing before the department an application for a permit or license.
5. "Association" means a body of persons, corporations, partnerships or associations, united and acting together without a charter from the state for the prosecution of some common enterprise.
6. "Commercial horse racing" means horse racing conducted other than by a county fair association.
7. "Commission" means the Arizona racing gaming commission.
8. "Concessionaire" means a person, partnership, association or corporation that offers goods or services for sale to the public, a permittee or a licensee at an enclosure in which authorized racing takes place or an additional wagering facility.
9. "County fair facility" means any place, enclosure or track constructed in accordance with a permit issued by the commission for the purpose of running county fair horse racing dates as well as any commercial dates for horse racing that may be awarded by the commission in reference to the location.
10. "County fair racing association" means an association duly authorized by the board of supervisors to conduct a county fair racing meeting for the benefit of the county.
11. "Dark day simulcast" means a simulcast received on a day when there are no posted races conducted at the enclosure in which authorized racing takes place.
12. "Department" means the department of gaming Arizona gaming commission.
13. "Desensitized" means that a horse's legs on arrival at the receiving barn or saddling paddock do not respond appropriately to tests for feeling administered by an official veterinarian.
14. "Director" means the director of the department of gaming commission.
15. "Dog racing" means racing in which greyhound dogs chase a mechanical lure.
16. "Entered" means that a horse or dog has been registered with an authorized racing official as a participant in a specified race and has not been withdrawn prior to before presentation of the horse or dog for inspection and testing as provided in section 5-105.
17. "Financial interest" means any direct pecuniary interest.
18. "Firm" means a business unit or enterprise that transacts business.
19. "Handle" means the total amount of money contributed to all pari-mutuel pools by bettors.
20. "Harness racing" means horse racing in which the horses are harnessed to a sulky, carriage or similar vehicle and driven by a driver.
21. "Horse racing" means racing in which horses are mounted and ridden by jockeys. For purposes of county fair racing meetings, "horse racing" means racing in which horses or mules are mounted and ridden by jockeys.
22. "License" means the license issued by the department to each employee or other person participating in any capacity in a racing meeting, including officials and employees of the pari-mutuel department.
23. "Pari-mutuel wagering" means a system of betting that provides for the distribution among the winning patrons of at least the total amount wagered less minus the amount withheld under state law.
24. "Permit" means a permit for a racing meeting issued under this article.
25. "Racing meeting" means a number of days of racing allotted by the commission in one permit.
26. "Simulcast" means the telecast shown within this state of live audio and visual signals of horse, harness or dog races conducted at an out-of-state track or the telecast shown outside this state of live audio and visual signals of horse or harness races originating within this state for the purpose of pari-mutuel wagering.
27. "Source market fee" means the fee that an advance deposit wagering provider pays to a commercial permittee in the state where the advance deposit wagering customer resides.
28. "Telephone" means any device that a person uses for voice communications in connection with the services of a telephone company.
29. "Unauthorized racing meeting" means any racing meeting conducted outside the bounds of a permit.
30. "Undesirable" includes known bookmakers, touts, persons convicted of a violation of this article or of any law prohibiting bookmaking or any other illegal forms of wagering, or any other person whose presence would, in the opinion of the director, be inimical to the interests of the state.
31. "Week" means seven consecutive days beginning on Monday and ending on Sunday, mountain standard time.
Sec. 2. Section 5-601, Arizona Revised Statutes, is amended to read:
5-601. Gambling on Indian reservations; tribal-state compacts; tribal-state compact fund
A. Notwithstanding any other law, this state, through the governor, may enter into negotiations and execute tribal-state compacts with Indian tribes in this state pursuant to the Indian gaming regulatory act of 1988 (P.L. 100-497; 102 Stat. 2467; 25 United States Code sections 2701 through 2721 and 18 United States Code sections 1166 through 1168). Notwithstanding the authority granted to the governor by this subsection, this state specifically reserves all of its rights, as attributes of its inherent sovereignty, recognized by the tenth and eleventh amendments to the United States Constitution. The governor shall not execute a tribal-state compact which that waives, abrogates or diminishes these rights.
B. Tribal-state gaming compacts shall prohibit persons under twenty-one years of age from wagering on gaming activities conducted pursuant to the compact as follows:
1. Beginning on June 1, 2003, any tribal-state gaming compact that is executed, modified, extended or renewed pursuant to this section shall include a provision that prohibits persons who are under twenty-one years of age from wagering on gaming activities.
2. Any tribal-state gaming compact that is executed, modified, extended or renewed pursuant to this section from and after July 18, 2000 but before June 1, 2003 shall include a provision that prohibits persons who are under twenty-one years of age from wagering on gaming activities, except that the provision shall not take effect until June 1, 2003.
C. The governor shall not concur in any determination by the United States secretary of the interior that would permit allow gaming on lands acquired after October 17, 1988 pursuant to 25 United States Code section 2719.
D. The department of gaming Arizona gaming commission is authorized to carry out the duties and responsibilities of the state gaming agency in compacts executed by the state and Indian tribes of this state pursuant to the Indian gaming regulatory act.
E. In carrying out its duties under tribal-state gaming compacts, the department of gaming Arizona gaming Commission is exempt from the rule making rulemaking requirements of title 41, chapter 6.
F. Indian tribes of this state that have executed compacts with the this state shall pay to the department of gaming Arizona gaming commission their share of the regulatory costs necessary to carry out the duties required by any executed tribal-state compact authorized by the Indian gaming regulatory act. The department of gaming Arizona gaming commission shall collect from each of the tribes that have executed a compact with the this state their share of the costs incurred by the department commission pursuant to this chapter. The dates and methods of payment shall be as specified in the tribal-state compacts.
G. A permanent tribal-state compact fund is established consisting of monies received pursuant to subsection F of this section and other monies received pursuant to this chapter. The department of gaming Arizona gaming commission shall administer the fund. The director of the department of gaming Arizona gaming commission shall make an annual report to the governor, the president of the senate, the speaker of the house of representatives and each tribe which that has executed a compact with the this state disclosing in detail the activities of the department of gaming Arizona gaming commission pursuant to this chapter, including a full and complete statement of revenues deposited in and expenditures from the permanent tribal-state compact fund. The director shall provide a copy of this report to the secretary of state. Monies paid by the tribes shall only be used only for reimbursement of administrative and regulatory expenses incurred by the department commission pursuant to this chapter.
H. Monies deposited in the permanent tribal-state compact fund are subject to legislative appropriation. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.
I. Any tribal-state gaming compact that is executed, modified, extended or renewed pursuant to this section shall include provisions that do all of the following:
1. Establish guidelines on automated teller machine use and on the use of credit cards or other forms of credit in gaming facilities.
2. Require the Indian tribe to post at all public entrances and exits to the gaming facilities signs that state that help is available if a person has a problem with gambling and the statewide toll-free crisis hotline telephone number, established by the Arizona state lottery commission.
3. Prohibit gaming facility advertising and marketing that specifically appeal to minors. The provisions shall include guidelines for determining acceptable advertising and marketing.
4. Establish guidelines for the effective treatment and prevention of problem and pathological gambling.
5. Establish guidelines for voluntary ban procedures from all gaming facilities in the this state, including but not limited to prohibiting the use of check cashing services, automatic teller machines, credit cards or other forms of credit offered at a gaming facility. A third person may not request a ban on behalf of another person.
Sec. 3. Section 5-602, Arizona Revised Statutes, is amended to read:
5-602. Gaming certification and enforcement; powers; duties; deputy director
A. The department of gaming Arizona gaming commission shall certify, as provided in tribal-state compacts, prospective gaming employees, facility support employees, tribal gaming office employees, financiers, management contractors, providers of gaming services and manufacturers and distributors of gaming devices to ensure that unsuitable individuals or companies are not involved in Indian gaming permitted allowed under the tribal-state compacts. In carrying out the duties prescribed in this section, the department commission shall seek to promote the public welfare and public safety and shall seek to prevent corrupt influences from infiltrating Indian gaming.
B. Certification pursuant to this chapter is a privilege and not a right.
C. The department of gaming Arizona gaming commission shall execute the duties of this state under the tribal-state compacts in a manner that is consistent with this state's desire to have extensive, thorough and fair regulation of Indian gaming permitted allowed under the tribal-state compacts.
D. The department of gaming Arizona gaming commission shall establish a certification and enforcement unit charged with the investigative duties relevant to tribal-state compacts, including applications for certification, investigations and enforcement, and such other duties as the director of the department of gaming Arizona gaming commission prescribes.
E. To determine the suitability of prospective applicants for any tribal gaming license or state certification, each applicant shall furnish a full set of fingerprints and such fingerprints shall be submitted to the department of public safety for a criminal records check. Each applicant's fingerprints shall also be submitted by the department of public safety to the federal bureau of investigation for a federal criminal records check. The department of gaming Arizona gaming Commission is authorized to receive criminal records information from the department of public safety and from the federal bureau of investigation for the purpose of evaluating the fitness of applicants for any tribal gaming license, state certification or renewal.
F. Hearings shall be conducted pursuant to title 41, chapter 6, article 10. Except as provided in section 41-1092.08, subsection H, any party who is aggrieved by a final order or decision of the director of the department of gaming Arizona gaming commission may seek judicial review pursuant to title 12, chapter 7, article 6.
G. The director of the department of gaming Arizona gaming commission may issue subpoenas for the attendance of witnesses and the production of books, records and documents necessary for the enforcement of this article and the tribal-state compacts. These subpoenas shall be served and enforced in a manner consistent with title 41, chapter 6, article 10.
H. The director of the department of gaming Arizona gaming commission may establish the position of deputy director of the department of gaming Arizona gaming commission. The deputy director of the department of gaming Arizona gaming commission position is exempt from title 41, chapter 4, articles 5 and 6. Persons holding the position of deputy director of the department of gaming Arizona gaming commission are eligible to receive compensation pursuant to section 38-611.
I. The director of the department of gaming Arizona gaming commission may enter into a contract or agreement with any public agency for any joint and cooperative action as provided in title 11, chapter 7, article 3.
J. The department of gaming Arizona gaming commission may investigate violations of section 13-3306 that occur on non-Indian lands in this state and may cooperate with appropriate law enforcement authorities and prosecutorial agencies in the investigation and prosecution of these violations.
Sec. 4. Section 5-602.01, Arizona Revised Statutes, is amended to read:
5-602.01. Rules; civil penalties
A. The department of gaming Arizona gaming commission may adopt rules to carry out the purposes of this chapter. The rules shall be consistent with the provisions contained in tribal-state compacts.
B. The department commission may impose a civil penalty not to exceed five thousand dollars $5,000 per day and not to exceed a total of twenty-five thousand dollars $25,000 against a certificate holder in lieu of or in addition to revocation of the certificate. The department commission may impose a civil penalty against a certificate holder in an amount not to exceed five hundred dollars $500 for a violation of any rule adopted pursuant to this section if the violation does not constitute grounds for revocation of the certificate. In determining the amount of the civil penalty, the department commission shall consider the seriousness of the violation and the financial impact that the penalty will have on the certificate holder. All civil penalties collected by the department commission pursuant to this section shall be transferred to the state treasurer for deposit deposited, pursuant to sections 35-146 and 35-147, in the state general fund.
C. At the director's request, the attorney general shall file an action in superior court to recover civil penalties imposed pursuant to this section.
Sec. 5. Section 5-603, Arizona Revised Statutes, is amended to read:
5-603. Arizona gaming commission investigators; peace officer status
An investigator who is regularly employed and paid by the department of gaming Arizona gaming commission and who is certified by the Arizona peace officer standards and training board has the authority of a peace officer.
Sec. 6. Repeal
Section 5-604, Arizona Revised Statutes, is repealed.
Sec. 7. Section 5-605, Arizona Revised Statutes, is amended to read:
5-605. Tribal-state compacts; 2021 compact trust fund; annual report; definition
A. The 2021 compact trust fund is established for the exclusive purposes of mitigating impacts to Indian tribes from gaming authorized by the 2021 gaming compact amendment and providing economic benefits to beneficiary tribes, including those with that have an effective gaming compact that includes the 2021 amendments and that do not engage in gaming. The trust fund consists of contributions from Indian tribes designated in the 2021 gaming compact amendments. The trust fund shall not include tribal contributions made pursuant to section 5-601.02, subsection H.
B. The department of gaming Arizona gaming commission shall administer the 2021 compact trust fund as trustee in accordance with the terms of section 12.1 of the 2021 gaming compact amendment. The state treasurer shall accept, separately account for and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined by section 35-310 and which shall not be commingled with any other monies in the state treasury except for investment purposes. On notice from the director of the department of gaming Arizona gaming commission, the state treasurer shall invest and divest any trust fund monies deposited in the state treasury as provided by sections 35-313 and 35-314.03, and monies earned from the investment shall be credited to the trust fund.
C. The beneficiaries of the trust fund are federally recognized Indian tribes with a 2021 gaming compact amendment that are eligible to receive payments from the trust fund according to the terms of the 2021 gaming compact amendment.
D. Monies in the trust fund shall be disbursed exclusively for the purposes prescribed in this article and in accordance with the 2021 gaming compact amendment. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, shall be carried forward to the following year and shall not revert or be transferred to any other fund, including the state general fund. Monies in the trust fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.
E. On or before September 30 of each year, the department of gaming Arizona gaming commission shall issue a report to the governor, the president of the senate, the speaker of the house of representatives and each tribe that has executed a 2021 gaming compact amendment that discloses all monies deposited in and disbursed from the trust fund during the prior fiscal year.
F. For the purposes of this section, "2021 gaming compact amendment" means a tribal-state gaming compact amendment that becomes effective after January 1, 2021.
Sec. 8. Title 5, Arizona Revised Statutes, is amended by adding chapter 6.1, to read:
CHAPTER 6.1
ARIZONA GAMING COMMISSION
ARTICLE 1. GENERAL PROVISIONS
5-621. Arizona gaming commission; qualifications; membership; appointment; terms; powers and duties; director; definition
A. the arizona gaming commission is established consisting of the following members, who must be citizens of the United States and residents of this state AND WHO ARE APPOINTED PURSUANT TO SECTION 5-622:
1. A certified public accountant who is licensed by this state or another state and who has at least five years of experience in general accounting, principles and practice of corporate finance, general finance, gaming or economics.
2. One member with at least five years of experience in investigation, law enforcement or gaming law.
3. the director of the commission.
4. Three public members.
5. three members who have experience in horse racing.
B. The governor shall appoint the director pursuant to section 5-622. The director serves at the pleasure of the governor and is eligible to receive compensation pursuant to section 38-611. The director and all other employees of the Arizona gaming commission are subject to title 41, chapter 4, article 4. The director must have at least five years of experience in public or business administration.
C. Each member shall be appointed for a four-year term.
D. The governor may remove Any member of the commission for cause.
E. any member of the commission may be removed by a vote of a majority of the members of the commission without cause.
F. before entering on the discharge of the appointee's duties, each member shall take the official oath.
G. members of the commission are eligible to receive compensation pursuant to section 38-611 for each day spent in the discharge of their duties and reimbursement for all expenses necessarily and properly incurred in attending a meeting of or for the commission, including mileage expenses.
H. a person who has a financial interest, either directly or indirectly, in gaming is not qualified for membership on the commission, appointment to the commission or employment by the commission.
i. a person who holds elected office in this state or any officer or official of a POLITICAL party or political convention IS not qualified for membership on the commission, appointment to the commission or employment by the commission.
J. the commission shall meet at the discretion of the director. A majority of the commission members constitute a quorum.
K. THe commission shall have an office located in Phoenix and may maintain an office in Tucson. On request of the commission, an agency of this state or a political subdivision of this state shall provide the commission with its services, equipment, documents, personnel and facilities to the extent possible without cost to the commission.
L. the commission shall:
1. assume all the powers and duties of the Arizona racing commission and the department of gaming.
2. enforce all adopted rules relating to gaming.
3. Ensure the continued growth and success of gaming in this state by establishing public confidence.
4. Regulate the location, practice, association and activities relating to the operation of licensed gaming establishments and the manufacture, sale or distribution of gaming devices and associated equipment.
5. License all establishments where gaming is conducted and where gaming devices are operated to protect the public health, safety, order and general welfare of residents of this state.
M. The employment or financial interest of any relative to the first degree of consanguinity or affinity to the director or any other employee of the Arizona gaming commission in the gambling industry in this state is grounds for dismissal.
N. for the purposes of this section, "gaming" means all racing, gambling on indian reservations, fantasy sports contests and event wagering conducted in this state.
5-622. Arizona gaming commission appointment recommendation board
A. The Arizona gaming commission appointment recommendation board is established consisting of members appointed by the governor pursuant to this section and section 38-211. The board shall consist of members who are citizens of the United States and who have been residents of this state for at least five years. The members shall be selected from each of the following qualifying groups:
1. One member who is actively engaged in an organization that has been in EXISTENCE for at least five years and that operates in the horse and dog racing industry.
2. One member who is actively engaged in an organization that has been in EXISTENCE for at least five years and that operates in the event wagering and fantasy sports industry.
3. One member who is actively engaged in an organization that has been in EXISTENCE for at least five years and that operates in the tribal gaming industry.
4. Two members who have at least five years of experience in investigations, law enforcement or gaming law.
B. Except as otherwise provided by law, members of the board serve five-year terms of office. A board member must maintain continuous membership in the organization the member represented when appointed during the entire term of office. The governor may remove a member of the board for inefficiency, conflict of interest, neglect of duty or misconduct in office and replace the member with an individual from the same organization represented by the former member. If a board member dies, resigns or is removed from office, the governor shall appoint an individual to fill the vacancy within thirty days from the same organization represented by the former member.
C. Three members of the board constitute a quorum. Meetings of the board shall be held at a location determined by the board. The board shall issue a public notice at least one week before a board meeting.
D. Members of the board are not eligible for compensation or reimbursement of expenses.
E. The board shall assist the governor by interviewing, evaluating and recommending candidates to fill vacancies on the arizona gaming commission as follows:
1. After the governor's call for applications for an open position on the commission, the governor shall deliver a final list of the applicants to the board within five days after the close of the application period. The board shall review the list of applicants and the application submitted by each applicant and proceed to interview, evaluate and recommend candidates as provided by this subsection.
2. If the board is considering candidates to fill the office of a commission member whose designated term is about to expire:
(a) On or before November 15 of each year, the board shall host a public forum to interview the commission candidates. The board shall issue a notice of the public forum at least five days before the scheduled date of the forum.
(b) On or before November 25, the board shall recommend at least two, but not more than five, candidates from the governor's final list of candidates.
(c) The governor must select and appoint a commissioner from the list submitted by the board.
3. If the board is considering candidates for a vacancy resulting from a commission member's death, resignation or removal from office:
(a) Not later than two weeks after receipt of the final list of commission candidates from the governor, the board shall host a public forum to interview the candidates. The board shall issue a notice of the public forum at least five days before the scheduled date of the forum.
(b) Within one week after the public forum, the board shall recommend at least two, but not more than five, candidates from the governor's final list of candidates.
(c) The governor must select and appoint a commissioner from the list submitted by the board.
F. The board shall assist the governor in identifying commission applicants.
Sec. 9. Section 5-1201, Arizona Revised Statutes, is amended to read:
5-1201. Definitions
In this chapter, unless the context otherwise requires:
1. "Applicant" means any person that has applied for a license as a fantasy sports contest operator or that has been approved for any act related to fantasy sports contests.
2. "Application" means a request to issue a license as a fantasy sports contest operator or to approve any act related to fantasy sports contests.
3. "Athletic event":
(a) Means a real-world professional, collegiate or nationally recognized sports game, contest or competition that involves the physical exertion and skill of the participating individual athletes who are each physically present at the location in which the sports game, contest or competition occurs, and the outcome of the sports game, contest or competition is directly dependent on the performance of the participating athletes.
(b) Includes events involving motor vehicles.
4. "Department" means the department of gaming arizona gaming commission.
5. "Entry fee" means cash or a cash equivalent that is paid by a participant to a fantasy sports contest operator to participate in a fantasy sports contest.
6. "Fantasy sports contest" means a simulated game or contest that is offered to the public with an entry fee and that meets all of the following conditions:
(a) No fantasy sports contest team is composed of the entire roster of a real-world sports team.
(b) No fantasy sports contest team is composed entirely of individual athletes who are members of the same real-world sports team.
(c) Each prize or award or the value of all prizes or awards offered to winning fantasy sports contest players is made known to the fantasy sports contest players in advance of the fantasy sports contest.
(d) Each winning outcome reflects the relative knowledge and skill of the fantasy sports contest players and is determined by the aggregated statistical results of the performance of multiple individual athletes or participants selected by the fantasy sports contest player to form the fantasy sports contest team, whose individual performances in the fantasy sports contest directly correspond with the actual performance of those athletes or participants in the athletic events in which those individual athletes or participants participated.
(e) A winning outcome is not based on randomized or historical events or on the score, point spread or performance in an athletic event of a single real-world sports team, a single athlete or any combination of real-world sports teams.
(f) The fantasy sports contest does not constitute or involve and is not based on any of the following:
(i) Racing that involves animals.
(ii) A game or contest ordinarily offered by a horse track or casino for money, credit or any representative of value, including any races, games or contests that involve horses or that are played with cards or dice.
(iii) A slot machine or other mechanical, electromechanical or electronic device, equipment or machine.
(iv) Poker, blackjack, faro, monte, keno, bingo, fan-tan, twenty-one, seven and a half, klondike, craps, chuck-a-luck, Chinese chuck-a-luck, wheel of fortune, chemin de fer, baccarat, pai gow, beat the banker, panguingue, roulette or other banking or percentage games.
(v) Any other game or device that is authorized or that is not authorized by this state.
(vi) A high school or youth sporting event or any event that is not an athletic event.
(vii) A contest that involves or results in betting on a race, a game, a contest or a sport that constitutes event wagering as defined in section 5-1301.
7. "Fantasy sports contest adjusted revenues" means the amount equal to the total of all entry fees that a fantasy sports contest operator collects from all fantasy sports contest players minus the total of all sums paid out as prizes or awards to all fantasy sports contest players, multiplied by the in-state percentage.
8. "Fantasy sports contest operator" or "operator" means a person that is engaged in the business of professionally conducting paid fantasy sports contests for cash or other prizes or awards for members of the general public that requires cash or cash equivalent as an entry fee to be paid by a member of the general public who participates in a paid fantasy sports contest.
9. "Fantasy sports contest platform" means the hardware, software, firmware, communications technology or other equipment, including operator procedures implemented to allow player participation in digital or online fantasy sports contests, and if supported, the corresponding equipment related to the display of the outcomes, and other similar information necessary to facilitate player participation in which a player is provided with the means to establish a player account and the fantasy sports contest operator is provided with the means to review player accounts, suspend fantasy sports contests, generate various financial transaction and account reports, input outcomes for fantasy sports contests and set any configurable parameters.
10. "Fantasy sports contest player" or "player" means an individual who participates in a fantasy sports contest offered by a fantasy sports contest operator.
11. "Fantasy sports contest team" means the simulated team composed of multiple individual athletes, each of whom is a member of a real-world sports team that a fantasy sports contest player selects to compete in a fantasy sports contest.
12. "Highly experienced player" means a fantasy sports contest player who has done at least one of the following:
(a) Entered more than one thousand fantasy sports contests offered by a single fantasy sports contest operator.
(b) Won more than three prizes or awards valued at $1,000 each or more from a single fantasy sports contest operator.
13. "Holding company" means a corporation, firm, partnership, limited partnership, limited liability company, trust or other form of business organization that is not an individual and that directly or indirectly does either of the following:
(a) Holds an ownership interest of ten percent or more, as determined by the holding company's board, in a fantasy sports contest operator.
(b) Holds voting rights with the power to vote ten percent or more of the outstanding voting rights of a fantasy sports contest operator.
14. "In-state percentage" means, for each fantasy sports contest, the percentage, rounded to the nearest tenth of a percent, equal to the total entry fees collected from all in-state participants divided by the total entry fees collected from all participants in the fantasy sports contest, unless otherwise prescribed by the department.
15. "Key employee" means an employee of a fantasy sports contest operator who has the power to exercise significant influence over decisions concerning the fantasy sports contest operator.
16. "License" means an approval that is issued by the department to any person or entity to be involved in a fantasy sports operation.
17. "Management company" means a person retained by a fantasy sports contest operator to manage a fantasy sports contest platform and provide general administration and other operational services.
18. "Person" means an individual, partnership, corporation, association, limited liability company, federally recognized Indian tribe or other legal entity.
19. "Player account" means an account that is established by a patron for the purpose of participating in fantasy sports contests, including deposits, withdrawals, entry fees and payouts.
20. "Prize or award" means anything of value or any amount of cash or cash equivalents.
21. "Protected information" means information related to playing fantasy sports contests by a fantasy sports contest player that is not readily available to the general public and that is obtained as a result of a person's employment in relation to a fantasy sports contest.
22. "Script" means a list of commands that a fantasy sports contest-related computer program can execute and that is created by a fantasy sports contest player or by a third party for a fantasy sports contest player to automate processes on a fantasy sports contest platform.
Sec. 10. Section 5-1301, Arizona Revised Statutes, is amended to read:
5-1301. Definitions
In this chapter, unless the context otherwise requires:
1. "Adjusted gross event wagering receipts" means an event wagering operator's gross wagering receipts, excluding voided bets, minus winnings paid to authorized participants and any federal excise tax. A deduction from adjusted gross event wagering receipts equal to the value of free bets or promotional credits redeemed by authorized participants may be taken as provided in this paragraph. The deduction under this paragraph for free bets or promotional credits is limited to the first five years following the effective date of this section April 15, 2021 as follows:
(a) For years one and two, a deduction not to exceed twenty percent of an event wagering operator's gross wagering receipts.
(b) For year three, a deduction not to exceed fifteen percent of an event wagering operator's gross wagering receipts.
(c) For years four and five, a deduction not to exceed ten percent of an event wagering operator's gross wagering receipts.
(d) For year six and each year thereafter, a deduction of free bets is not allowed. January 1 following the year in which the event wagering operator begins event wagering operations is considered the first year of event wagering for the purposes of this paragraph. An event wagering operator may deduct up to twenty percent of an event wagering operator's gross wagering receipts during any period that the operator conducts event wagering before January 1 of the first year of event wagering operations.
2. "Department" means the department of gaming Arizona gaming commission.
3. "E-sport event" means an organized, multiplayer video game competition, particularly between professional players, individually or as teams.
4. "Event wagering":
(a) Means accepting wagers on sports events or other events, portions of sports events or other events, the individual performance statistics of athletes in a sports event or combination of sports events or the individual performance of individuals in other events or a combination of other events by any system or method of wagering, including in person or over the Internet through websites and on mobile devices.
(b) Does not include a fantasy sports contest as defined in section 5-1201.
5. "Event wagering employee" means an employee of an event wagering operator, sports facility, management services provider or limited event wagering operator who is directly involved in the management or control of the conduct of event wagering under this chapter in this state.
6. "Event wagering facility" means a facility at which event wagering is conducted under this chapter.
7. "Event wagering operator" means either:
(a) An owner or operator of an Arizona professional sports team or franchise, an operator of a sports facility in this state that hosts an annual tournament on the PGA tour or a promoter of a national association for stock car auto racing national touring race in this state, or the designee of such an owner, operator or promoter, who is licensed to offer event wagering under this chapter. If an owner, operator or promoter that qualified for an event wagering operator license appoints a designee, the designee will be considered the event wagering operator and the licensee with respect to the applicable license for the purposes of this chapter.
(b) An Arizona Indian tribe or an entity fully owned by an Arizona Indian tribe, or its designee, licensed to operate only mobile event wagering outside the boundaries of its Indian lands and throughout this state if it has signed the most recent tribal-state gaming compact and any applicable appendices or amendments. If an Indian tribe that qualified for an event wagering operator license appoints a designee, the designee will be considered the event wagering operator and the licensee with respect to the applicable license for the purposes of this chapter.
10. 8. "Licensee" means a person that holds an event wagering operator license, limited event wagering license, supplier license or management services provider license.
8. 9. "Limited event wagering operator" means a racetrack enclosure or additional wagering facility that holds a permit issued by the division of racing to offer wagers on horseracing and that is licensed under this chapter.
11. 10. "Management services provider" means a person that operates, manages or controls event wagering authorized by this chapter on behalf of an event wagering operator or limited event wagering operator, including developing or operating event wagering platforms and providing odds, lines and global risk management, and may provide services to more than one licensed event wagering operator or licensed limited event wagering operator.
9. 11. "Official league data" means statistics, results, outcomes and other data related to a sports event or other event obtained pursuant to an agreement with the relevant sports governing body or an entity expressly authorized by the sports governing body to provide such information to licensees that authorizes the use of such data for determining the outcome of sports wagers on sports events or other events.
12. "Other event" means a competition of relative skill or an event authorized by the department under this chapter.
13. "Person" means an individual, partnership, committee, association, corporation, or Indian tribe or an entity fully owned by an Indian tribe, or any other organization or group of persons.
14. "Professional sport" means a sport conducted at the highest level league or organizational play for its respective sport and includes baseball, basketball, football, golf, hockey, soccer and motorsports.
15. "Prohibited conduct" includes any statement, action or other communication intended to unlawfully influence, manipulate or control a betting outcome of a sports event or other event of any individual occurrence or performance in a sports event or other event in exchange for financial gain or to avoid financial or physical harm.
16. "Prohibited participant" means:
(a) Any individual whose participation may undermine the integrity of the wagering, the sports event or the other event.
(b) Any individual who is prohibited from placing a wager as an agent, proxy or because of self-exclusion.
(c) Any individual who is an athlete, coach, referee, player, trainer or personnel of a sports organization in any sports event or other event overseen by that individual's sports organization who, based on information that is not publicly available, has the ability to determine or to unlawfully influence the outcome of a wager.
(d) An individual who holds a position of authority or influence sufficient to exert influence over the participants in a sporting contest, including coaches, managers, handlers and athletic trainers, such that their actions can affect the outcome of a wager.
(e) An individual with access to exclusive information on any sports event or other event overseen by that individual's sports governing body that is not publicly available information or any individual identified by any lists provided by the sports governing body to the Department.
17. "Sports event" means a professional sport or athletic event, a collegiate sport or athletic event, a motor race event, an e-sport event or an olympic event.
18. "Sports facility" means a facility that is owned by a commercial, state or local government or quasi-governmental entity that hosts professional sports events and that holds a seating capacity of more than ten thousand persons at its primary facility, one location in this state that hosts an annual golf tournament on the PGA tour and one location that holds an outdoor motorsports facility that hosts a national association for stock car auto racing national touring race.
19. "Sports governing body" means an organization headquartered in the United States that prescribes final rules and enforces codes of conduct with respect to a sports event and participants in a sports event.
22. 20. "Supplier" means a person that manufactures, distributes or supplies event wagering equipment or software, including event wagering systems.
20. 21. "Tier one sports wager" means a sports wager that is determined solely by the final score or final outcome of the sports event and that is placed before the sports event has begun.
21. 22. "Tier two sports wager" means a sports wager that is not a tier one sports wager.
23. "Wager":
(a) Means a sum of money or thing of value risked on an uncertain occurrence.
(b) Includes tier one and tier two sports wagers, single-game bets, teaser bets, parlays, over-under bets, moneyline bets, pools, exchange wagering, in-game wagering, in-play bets, proposition bets, straight bets and other wagers approved by the department.
Sec. 11. Repeal
Sections 41-3024.28 and 41-3026.04, Arizona Revised Statutes, are repealed.
Sec. 12. Title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding section 41-3034.01, to read:
41-3034.01. Arizona gaming commission; termination July 1, 2034
A. The arizona gaming commission terminates on July 1, 2034.
b. Title 5, chapters 1, 6.1, 10 and 11 and this section are repealed on January 1, 2035.
Sec. 13. Purpose
Pursuant to section 41-2955, subsection E, Arizona Revised Statutes, the legislature establishes the Arizona gaming commission to regulate and promote gaming.
Sec. 14. Transferring powers; succession; initial terms
A. The Arizona gaming commission succeeds to the powers and duties of the following:
1. The Arizona racing commission.
2. The department of gaming.
B. All certificates, licenses, registrations, permits and other indicia of qualification and authority that were issued by the Arizona racing commission and the department of gaming retain their validity as provided by law.
C. All equipment, records, furnishings and other property and all appropriated monies that remain unexpended and unencumbered on the effective date of this act of the Arizona racing commission and the department of gaming are transferred to the Arizona gaming commission.
D. All personnel who are under the state personnel system, who are employed by the Arizona racing commission and the department of gaming are transferred to comparable positions and pay classifications in the respective administrative units of the Arizona gaming commission on the effective date of this act.
E. Notwithstanding section 5-621, subsection C, Arizona Revised Statutes, as added by this act, the initial terms of the Arizona gaming commission are as follows:
1. The term of the member appointed pursuant to section 5-621, subsection A, paragraph 1, Arizona Revised Statutes, as added by this act, expires on the last Monday in January 2027.
2. The term of the member appointed pursuant to section 5-621, subsection A, paragraph 2, Arizona Revised Statutes, as added by this act, expires on the last Monday in January 2028.
3. The members appointed pursuant to section 5-621, subsection A, paragraphs 4 and 5, Arizona Revised Statutes, as added by this act, shall assign themselves by lot to terms of two, three and four years in office. The chairperson shall notify the governor of these terms.
Sec. 15. Conforming legislation
The legislative council staff shall prepare proposed legislation conforming the Arizona Revised Statutes to the provisions of this act for consideration in the fifty-seventh legislature, first regular session.
