Arizona 2022 2022 Regular Session

Arizona House Bill HB2855 Comm Sub / Analysis

Filed 06/21/2022

                      	HB 2855 
Initials PRB 	Page 1 	Caucus&COW 
 
ARIZONA HOUSE OF REPRESENTATIVES 
Fifty-fifth Legislature 
Second Regular Session 
House: APPROP DP 8-5-0-0 
 
HB 2855: amusements; 2022-2023 
Sponsor: Representative Cobb (with permission of committee on Rules), LD 5 
Caucus & COW 
Overview 
Contains provisions relating to amusements needed to implement the FY 2023 budget. 
History 
Laws 2021, Chapter 234, established laws governing fantasy sports contests and event wagering. 
The Arizona Department of Gaming (ADG) is responsible for the administration and regulation of 
fantasy sports contest and event wagering operators. 
ADG is required to establish a fee for the privilege of operating fantasy sports contests and event 
wagering. In determining the fee, ADG must consider the highest percentage of revenue share 
that an Indian tribe pays in accordance with the tribal-state gaming compact. The fees are due by 
the 25th day of each month for deposit to the respective funds (A.R.S. §§ 5-1211, 5-1212, and 5- 
1318).  
ADG has set the following fees for the privilege of operating:  
1) fantasy sports contests, 5% of fantasy sports contest adjusted revenues;  
2) event wagering for retail operations, 8% of adjusted gross event wagering receipts; and  
3) event wagering for mobile operations, 10% of adjusted gross event wagering receipts (R19-
4-208; R19-4-112). 
The Fantasy Contest Fund consists of monies from licensing fees and the privilege fee. Monies 
in the fund are subject to legislative appropriation, and ADG may spend up to 10% on the annual 
costs for regulating and enforcing fantasy sports contest laws.  ADG must transfer any remaining 
monies to the state General Fund (A.R.S. § 5-1212). 
The Event Wagering Fund consists of monies from licensing fees and certain privilege fees. ADG 
may spend up to 10% on the annual costs for regulating and enforcing event wagering laws.  On 
the 25
th
 day of each month, any monies remaining in the fund must be transferred to the state 
General Fund (A.R.S. § 5-1318). 
Pursuant to A.R.S. § 5-104, ADG's Division of Racing establishes and collects a regulatory 
assessment from each commercial racing permittee, payable from amounts deducted from pari-
mutuel pools by the permittee, from amounts wagered on live and simulcast races from in-state 
and out-of-state wagering handled by the permittee. All monies received from the regulatory 
assessment are deposited into the Racing Regulation Fund, which is the primary funding source 
for the Division of Racing. 
While ADG has the authority to set the regulatory assessment rate, the Legislature, for each FY 
since 2017, has set the rate at 0.5% of the amounts wagered. 
Provisions 
☐ Prop 105 (45 votes)     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes) ☐ Fiscal Note    	HB 2855 
Initials PRB 	Page 2 	Caucus&COW 
1. Caps the fee for the privilege to operate fantasy sports contests to 10% of the fantasy sports 
contest operator's adjusted revenues. (Sec. 1) 
2. Caps the fee for the privilege to operate event wagering to 10% of the event wagering 
operator's adjusted gross event wagering receipts. (Sec. 4) 
3. Requires any revenues collected in excess of the amount appropriated from the Fantasy 
Sports Contest Fund to ADG be transferred to the state General Fund at the end of each fiscal 
year. (Sec. 2) 
4. Clarifies that on or before the 25
th
 of each month, 90% of the monies deposited in the Event 
Wagering Fund from the previous month must be transferred to the state General Fund. (Sec. 
4)  
5. Continues for FY 2023, as session law, ADG's regulatory assessment of 0.5% on the amounts 
wagered on live and simulcast races from in-state and out-of-state wagering handled by a 
commercial racing permittee. (Sec. 5) 
6. Makes a technical change. (Sec. 3, 4)