ARIZONA STATE SENATE RESEARCH STAFF TO: MEMBERS OF THE SENATE APPROPRIATIONS COMMITTEE DATE: March 25, 2022 SUBJECT: Strike everything amendment to H.B. 2456, relating to event; wagering Purpose Requires the Arizona Department of Gaming (ADG) to issue or renew an event wagering operator license to a professional sports team licensee or applicant if professional events are currently hosted at a temporary sports facility and the primary sports facility is under construction or maintenance or a new primary sports facility is under construction. Background In 2021, the Legislature authorized event wagering according to prescribed regulations administered by the ADG (Laws 2021, Ch. 234). The ADG may not issue more than: 1) 10 event wagering operator licenses to applicants other than Indian tribes; and 2) 10 event wagering operator licenses to Indian tribes in Arizona if the Indian tribe receiving a license has signed the most recent tribal-state gaming compact and any applicable appendices or amendments. The ADG must only issue an event wagering operator license, for an applicant other than an Indian tribe, to: 1) an Arizona professional sports team or franchise; 2) the operator of a sports facility that hosts an annual tournament on the PGA Tour; 3) the promoter of a national association for stock car auto racing national touring race conducted in Arizona; or 4) the owner's, operator's or promoter's designee contracted to operate both retail event wagering at a sports facility or complex and mobile event wagering throughout Arizona. A license issued by the ADG authorizes the event wagering operator to offer event wagering in Arizona through: 1) an event wagering facility within a prescribed radius of a sports facility depending on proximity to Indian lands; and 2) event wagering through a mobile platform as specified by the ADG. An event wagering license may not be renewed if it is determined by the ADG that the event wagering operator has not substantially complied with statutes governing the operation of event wagering (A.R.S. ยง 5-1304). There is no anticipated fiscal impact to the state General Fund associated with this legislation. Provisions 1. Requires the ADG to issue or renew an event wagering operator license to a professional sports team licensee or applicant if all of the following apply: a) the licensee or applicant hosts sports events at a facility that does not meet the definition of a sports facility, but the licensees or applicant meets all other statutory requirements governing event wagering; b) the licensee's or applicant's professional sports team is currently hosting professional sports events in a temporary sports facility located in Arizona with a seating capacity of fewer than 10,000 persons; JASON THEODOROU LEGISLATIVE RESEARCH ANALYST COMMERCE COMMITTEE Telephone: (602) 926-3171 STRIKER MEMO H.B. 2456 Page 2 c) the professional sports team's primary sports facility requires construction or maintenance or the professional sports team is constructing a new primary sports facility; and d) the licensee or applicant holds an event wagering operator license on the general effective date. 2. Allows an event wagering operator licensee that is licensed in accordance with the temporary sports facility authorization to advertise on and within the premises of the licensee's temporary sports facility. 3. Makes technical and conforming changes. 4. Becomes effective on the general effective date.