| 1 | 1 | | REFERENCE TITLE: event wagering; problem gambling fund State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SB 1717 Introduced by Senator Gonzales An Act amending section 5-572, Arizona Revised Statutes, as amended by laws 2024, chapter 210, section 2; amending section 5-572, Arizona Revised Statutes, as amended by laws 2024, chapter 210, section 3; amending section 5-1305, Arizona Revised Statutes; amending title 5, chapter 11, article 1, Arizona Revised Statutes, by adding section 5-1318.01; relating to event wagering. (TEXT OF BILL BEGINS ON NEXT PAGE) |
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| 9 | 9 | | REFERENCE TITLE: event wagering; problem gambling fund |
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| 10 | 10 | | State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 |
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| 11 | 11 | | SB 1717 |
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| 12 | 12 | | Introduced by Senator Gonzales |
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| 14 | 14 | | REFERENCE TITLE: event wagering; problem gambling fund |
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| 24 | 24 | | State of Arizona |
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| 26 | 26 | | Senate |
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| 28 | 28 | | Fifty-seventh Legislature |
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| 30 | 30 | | First Regular Session |
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| 32 | 32 | | 2025 |
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| 40 | 40 | | SB 1717 |
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| 44 | 44 | | Introduced by |
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| 46 | 46 | | Senator Gonzales |
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| 64 | 64 | | An Act |
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| 68 | 68 | | amending section 5-572, Arizona Revised Statutes, as amended by laws 2024, chapter 210, section 2; amending section 5-572, Arizona Revised Statutes, as amended by laws 2024, chapter 210, section 3; amending section 5-1305, Arizona Revised Statutes; amending title 5, chapter 11, article 1, Arizona Revised Statutes, by adding section 5-1318.01; relating to event wagering. |
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| 74 | 74 | | (TEXT OF BILL BEGINS ON NEXT PAGE) |
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| 78 | 78 | | Be it enacted by the Legislature of the State of Arizona: Section 1. Section 5-572, Arizona Revised Statutes, as amended by Laws 2024, chapter 210, section 2, is amended to read: START_STATUTE5-572. Use of monies in state lottery fund; report A. If there are any bonds or bond related obligations payable from the state lottery revenue bond debt service fund, the state lottery revenue bond debt service fund shall be secured by a first lien on the monies in the state lottery fund after the payment of operating costs of the lottery, as prescribed in section 5-555, subsection A, paragraph 1, until the state lottery bond debt service fund contains sufficient monies to meet all the requirements for the current period as required by the bond documents. Debt service for revenue bonds issued pursuant to this chapter shall be paid first from monies that would have otherwise been deposited pursuant to this section in the state general fund. After the requirements for the current period have been satisfied as required by the bond documents, the monies in the state lottery fund shall be expended for the expenses of the commission incurred in carrying out its powers and duties and in the operation of the lottery. B. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsection A of this section, $10,000,000 shall be deposited in the Arizona game and fish commission heritage fund established by section 17-297. C. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A and B of this section, $5,000,000 shall be allocated to the department of child safety for the healthy families program established by section 8-481, $4,000,000 shall be allocated to the Arizona board of regents for the Arizona area health education system established by section 15-1643, $3,000,000 shall be allocated to the department of health services to fund the teenage pregnancy prevention programs established in Laws 1995, chapter 190, sections 2 and 3 $2,000,000 shall be allocated to the department of health services for the health start program established by section 36-697, $2,000,000 shall be deposited in the disease control research fund established by section 36-274, $1,300,000 shall be deposited in the problem gambling fund established by section 5-1318.01, $1,300,000 shall be allocated to the department of gaming division of problem gambling for treatment and prevention of problem gambling and problem gambling education programs and $1,000,000 shall be allocated to the department of health services for the federal women, infants and children food program. The allocations in this subsection shall be adjusted annually according to changes in the GDP price deflator as defined in section 41-563, and the allocations are exempt from the provisions of section 35-190 relating to lapsing of appropriations. If there are not sufficient monies available pursuant to this subsection, the allocation of monies for each program shall be reduced on a pro rata basis. D. If the state lottery director determines that monies available to the state general fund may not equal $84,150,000 in a fiscal year, the director shall not authorize deposits to the Arizona game and fish commission heritage fund pursuant to subsection B of this section until the deposits to the state general fund equal $84,150,000 in a fiscal year. E. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A through D of this section, $1,000,000 or the remaining balance in the fund, whichever is less, is appropriated to the department of economic security for grants to nonprofit organizations, including faith-based organizations, for homeless emergency and transitional shelters and related support services. The department of economic security shall submit a report on the amounts, recipients, purposes and results of each grant to the governor, the speaker of the house of representatives and the president of the senate on or before December 31 of each year for the prior fiscal year and shall provide a copy of this report to the secretary of state. F. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A through E of this section, and after a total of at least $99,640,000 has been deposited in the state general fund, $1,750,000 shall be deposited in the Arizona competes fund established by section 41-1545.01. The balance in the state lottery fund remaining after deposits into the Arizona competes fund shall be deposited in the university capital improvement lease-to-own and bond fund established by section 15-1682.03, up to a maximum of eighty percent of the total annual payments of lease-to-own and bond agreements entered into by the Arizona board of regents. G. All monies remaining in the state lottery fund after the appropriations and deposits authorized in this section shall be deposited in the state general fund. H. Except for monies expended for debt service of revenue bonds as provided in subsection A of this section, monies expended under subsection A of this section are subject to legislative appropriation. I. The commission shall transfer monies prescribed in this section on a quarterly basis. END_STATUTE Sec. 2. Section 5-572, Arizona Revised Statutes, as amended by Laws 2024, chapter 210, section 3, is amended to read: START_STATUTE5-572. Use of monies in state lottery fund; report A. If there are any bonds or bond related obligations payable from the state lottery revenue bond debt service fund, the state lottery revenue bond debt service fund shall be secured by a first lien on the monies in the state lottery fund after the payment of operating costs of the lottery, as prescribed in section 5-555, subsection A, paragraph 1, until the state lottery bond debt service fund contains sufficient monies to meet all the requirements for the current period as required by the bond documents. Debt service for revenue bonds issued pursuant to this chapter shall be paid first from monies that would have otherwise been deposited pursuant to this section in the state general fund. After the requirements for the current period have been satisfied as required by the bond documents, the monies in the state lottery fund shall be expended for the expenses of the commission incurred in carrying out its powers and duties and in the operation of the lottery. B. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsection A of this section, $10,000,000 shall be deposited in the Arizona game and fish commission heritage fund established by section 17-297. C. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A and B of this section, $5,000,000 shall be allocated to the department of child safety for the healthy families program established by section 8-481, $4,000,000 shall be allocated to the Arizona board of regents for the Arizona area health education system established by section 15-1643, $3,000,000 shall be allocated to the department of health services to fund the teenage pregnancy prevention programs established in Laws 1995, chapter 190, sections 2 and 3, $2,000,000 shall be allocated to the department of health services for the health start program established by section 36-697, $2,000,000 shall be deposited in the disease control research fund established by section 36-274, $1,300,000 shall be deposited in the problem gambling fund established by section 5-1318.01, $1,300,000 shall be allocated to the department of gaming division of problem gambling for treatment and prevention of problem gambling and problem gambling education programs and $1,000,000 shall be allocated to the department of health services for the federal women, infants and children food program. The allocations in this subsection shall be adjusted annually according to changes in the GDP price deflator as defined in section 41-563, and the allocations are exempt from the provisions of section 35-190 relating to lapsing of appropriations. If there are not sufficient monies available pursuant to this subsection, the allocation of monies for each program shall be reduced on a pro rata basis. D. If the state lottery director determines that monies available to the state general fund may not equal $84,150,000 in a fiscal year, the director shall not authorize deposits to the Arizona game and fish commission heritage fund pursuant to subsection B of this section until the deposits to the state general fund equal $84,150,000 in a fiscal year. E. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A through D of this section, $1,000,000 or the remaining balance in the fund, whichever is less, is appropriated to the department of economic security for grants to nonprofit organizations, including faith-based organizations, for homeless emergency and transitional shelters and related support services. The department of economic security shall submit a report on the amounts, recipients, purposes and results of each grant to the governor, the speaker of the house of representatives and the president of the senate on or before December 31 of each year for the prior fiscal year and shall provide a copy of this report to the secretary of state. F. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A through E of this section, and after a total of at least $99,640,000 has been deposited in the state general fund, $3,500,000 shall be deposited in the Arizona competes fund established by section 41-1545.01. The balance in the state lottery fund remaining after deposits into the Arizona competes fund shall be deposited in the university capital improvement lease-to-own and bond fund established by section 15-1682.03, up to a maximum of eighty percent of the total annual payments of lease-to-own and bond agreements entered into by the Arizona board of regents. G. All monies remaining in the state lottery fund after the appropriations and deposits authorized in this section shall be deposited in the state general fund. H. Except for monies expended for debt service of revenue bonds as provided in subsection A of this section, monies expended under subsection A of this section are subject to legislative appropriation. I. The commission shall transfer monies prescribed in this section on a quarterly basis. END_STATUTE Sec. 3. Section 5-1305, Arizona Revised Statutes, is amended to read: START_STATUTE5-1305. License review; approval; fees; material change; exemption; display; transferability A. On receipt of a completed application and the required fee, the department shall conduct the necessary background investigation to ensure the applicant is qualified for licensure. On completion of the necessary background investigation, the department shall either issue a license or deny the application. If the application is denied, the department shall forward a statement setting forth the grounds for denial to the applicant together with all other documents on which the department relied, to the extent allowed by law. B. The department may conduct additional background investigations of any person required to be licensed at any time while the license remains valid. The issuance of a license does not create or imply a right of employment or continued employment. The event wagering operator or limited event wagering operator may not employ and, if already employed, shall terminate an event wagering employee if it is determined that the person meets any of the following criteria: 1. Has been convicted of any gaming offense. 2. Has been convicted of a felony in the seven years before submitting an application unless that felony has been set aside. 3. Has ever been convicted of a felony related to extortion, burglary, larceny, bribery, embezzlement, robbery, racketeering, money laundering, forgery, fraud, murder, voluntary manslaughter, a sexual offense that requires the individual to register pursuant to section 13-3821 or kidnapping. 4. Knowingly and wilfully provides materially important false statements or information or omits materially important information on the person's employment application or background questionnaire. 5. Is a person whose prior activities, criminal record, if any, or reputation, habits and associations pose a threat to the public interest or to the effective regulation and control of gaming or create or enhance the dangers of unsuitable, unfair or illegal practices, methods and activities in the conduct of gaming or the carrying on of the business and financial arrangements incidental thereto. C. Not later than sixty days after the department receives a complete application, the department shall issue a license to the applicant unless the background investigation the department conducts discloses that the applicant has a criminal history or unless other grounds sufficient to disqualify the applicant are apparent on the face of the application. If more than ten applications are received for a particular license type, the department shall adopt a process for ensuring an equal opportunity for all qualified applicants to obtain a license. The department shall review and approve or deny an application for a license as provided in title 41, chapter 6, article 10. D. For each application for licensure or renewal of a license that is approved under this section, the amount of the application fee must be credited toward the licensee's license fee and the licensee shall remit the balance of the initial license fee to the department on approval of a license. The fees collected from licensees under this section shall be deposited in the event wagering fund established by section 5-1318 and used by the department to pay the actual operating and administrative expenses incurred for event wagering. E. Each person licensed under this chapter shall give the department written notice within thirty days after a material change is made to information provided in the licensee's application for a license or renewal. F. Indian tribes within this state that are operating event wagering exclusively on Indian lands are exempt from the licensure requirements of this section. Event wagering on Indian lands is governed by the tribal-state gaming compact, its appendices, any amendments and the Indian gaming regulatory act (P.L. 100-497; 102 stat. 2467). G. Each licensee shall display its license conspicuously in the licensee's place of business or have the license available for inspection by an agent of the department or a law enforcement agency. Each licensee that operates an event wagering platform shall conspicuously display a notice of the license on its platform's landing page. H. The department shall keep all information, records, interviews, reports, statements, memoranda or other data supplied to or used by the department in the course of its review or investigation of an application for an event wagering operator license or renewal of a license confidential. The department shall immediately release any materials described in this subsection to any member of the legislature on written request. The materials described in this subsection are not exempt from disclosure in compliance with a court order, subpoena, statutory audit or pursuant to title 39, chapter 1, article 2. I. A license issued under this chapter may not be transferred to another person or entity without prior approval of the department. The department shall work with applicants and licensees to ensure there is no gap in the validity of the license. END_STATUTE Sec. 4. Title 5, chapter 11, article 1, Arizona Revised Statutes, is amended by adding section 5-1318.01, to read: START_STATUTE5-1318.01. Problem gambling fund; fees A. The problem gambling fund is established consisting of monies deposited pursuant to section 5-572 and subsection b of this section and from any other source. The department shall administer the fund. monies in the fund are continuously appropriated b. Except as otherwise provided in this chapter, the department shall establish a problem gambling fee and require each licensed event wagering operator that is licensed to operate both mobile event wagering and retail event wagering pursuant to section 5-1304, subsection a, paragraph 1 to quarterly pay to the department the fee. C. The monies in the problem gambling fund shall fund the division of problem gambling established within the department. The division will use monies in the fund to do both of the following: 1. Address prevention and treatment of problem gambling and gambling addiction. 2. education programs relating to problem gambling. END_STATUTE Sec. 5. Effective date Section 5-572, Arizona Revised Statutes, as amended by Laws 2024, chapter 210, section 3 and this act, is effective from and after June 30, 2027. Sec. 6. Legislative intent; definition A. The legislature intends that the department of gaming set the problem gambling fee prescribed in section 5-1318.01, Arizona Revised Statutes, as added by this act, at an amount of at least three percent of the event wagering operator's adjusted gross annual event wagering receipts. B. For the purposes of this section, "adjusted gross annual event wagering receipts" means the gross event wagering receipts that are derived from wagers minus all winnings paid to players and before any deductions are made, including free bet reductions. |
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| 80 | 80 | | Be it enacted by the Legislature of the State of Arizona: |
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| 82 | 82 | | Section 1. Section 5-572, Arizona Revised Statutes, as amended by Laws 2024, chapter 210, section 2, is amended to read: |
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| 84 | 84 | | START_STATUTE5-572. Use of monies in state lottery fund; report |
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| 86 | 86 | | A. If there are any bonds or bond related obligations payable from the state lottery revenue bond debt service fund, the state lottery revenue bond debt service fund shall be secured by a first lien on the monies in the state lottery fund after the payment of operating costs of the lottery, as prescribed in section 5-555, subsection A, paragraph 1, until the state lottery bond debt service fund contains sufficient monies to meet all the requirements for the current period as required by the bond documents. Debt service for revenue bonds issued pursuant to this chapter shall be paid first from monies that would have otherwise been deposited pursuant to this section in the state general fund. After the requirements for the current period have been satisfied as required by the bond documents, the monies in the state lottery fund shall be expended for the expenses of the commission incurred in carrying out its powers and duties and in the operation of the lottery. |
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| 88 | 88 | | B. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsection A of this section, $10,000,000 shall be deposited in the Arizona game and fish commission heritage fund established by section 17-297. |
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| 90 | 90 | | C. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A and B of this section, $5,000,000 shall be allocated to the department of child safety for the healthy families program established by section 8-481, $4,000,000 shall be allocated to the Arizona board of regents for the Arizona area health education system established by section 15-1643, $3,000,000 shall be allocated to the department of health services to fund the teenage pregnancy prevention programs established in Laws 1995, chapter 190, sections 2 and 3 $2,000,000 shall be allocated to the department of health services for the health start program established by section 36-697, $2,000,000 shall be deposited in the disease control research fund established by section 36-274, $1,300,000 shall be deposited in the problem gambling fund established by section 5-1318.01, $1,300,000 shall be allocated to the department of gaming division of problem gambling for treatment and prevention of problem gambling and problem gambling education programs and $1,000,000 shall be allocated to the department of health services for the federal women, infants and children food program. The allocations in this subsection shall be adjusted annually according to changes in the GDP price deflator as defined in section 41-563, and the allocations are exempt from the provisions of section 35-190 relating to lapsing of appropriations. If there are not sufficient monies available pursuant to this subsection, the allocation of monies for each program shall be reduced on a pro rata basis. |
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| 92 | 92 | | D. If the state lottery director determines that monies available to the state general fund may not equal $84,150,000 in a fiscal year, the director shall not authorize deposits to the Arizona game and fish commission heritage fund pursuant to subsection B of this section until the deposits to the state general fund equal $84,150,000 in a fiscal year. |
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| 94 | 94 | | E. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A through D of this section, $1,000,000 or the remaining balance in the fund, whichever is less, is appropriated to the department of economic security for grants to nonprofit organizations, including faith-based organizations, for homeless emergency and transitional shelters and related support services. The department of economic security shall submit a report on the amounts, recipients, purposes and results of each grant to the governor, the speaker of the house of representatives and the president of the senate on or before December 31 of each year for the prior fiscal year and shall provide a copy of this report to the secretary of state. |
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| 96 | 96 | | F. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A through E of this section, and after a total of at least $99,640,000 has been deposited in the state general fund, $1,750,000 shall be deposited in the Arizona competes fund established by section 41-1545.01. The balance in the state lottery fund remaining after deposits into the Arizona competes fund shall be deposited in the university capital improvement lease-to-own and bond fund established by section 15-1682.03, up to a maximum of eighty percent of the total annual payments of lease-to-own and bond agreements entered into by the Arizona board of regents. |
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| 98 | 98 | | G. All monies remaining in the state lottery fund after the appropriations and deposits authorized in this section shall be deposited in the state general fund. |
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| 100 | 100 | | H. Except for monies expended for debt service of revenue bonds as provided in subsection A of this section, monies expended under subsection A of this section are subject to legislative appropriation. |
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| 102 | 102 | | I. The commission shall transfer monies prescribed in this section on a quarterly basis. END_STATUTE |
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| 103 | 103 | | |
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| 104 | 104 | | Sec. 2. Section 5-572, Arizona Revised Statutes, as amended by Laws 2024, chapter 210, section 3, is amended to read: |
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| 105 | 105 | | |
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| 106 | 106 | | START_STATUTE5-572. Use of monies in state lottery fund; report |
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| 107 | 107 | | |
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| 108 | 108 | | A. If there are any bonds or bond related obligations payable from the state lottery revenue bond debt service fund, the state lottery revenue bond debt service fund shall be secured by a first lien on the monies in the state lottery fund after the payment of operating costs of the lottery, as prescribed in section 5-555, subsection A, paragraph 1, until the state lottery bond debt service fund contains sufficient monies to meet all the requirements for the current period as required by the bond documents. Debt service for revenue bonds issued pursuant to this chapter shall be paid first from monies that would have otherwise been deposited pursuant to this section in the state general fund. After the requirements for the current period have been satisfied as required by the bond documents, the monies in the state lottery fund shall be expended for the expenses of the commission incurred in carrying out its powers and duties and in the operation of the lottery. |
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| 109 | 109 | | |
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| 110 | 110 | | B. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsection A of this section, $10,000,000 shall be deposited in the Arizona game and fish commission heritage fund established by section 17-297. |
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| 111 | 111 | | |
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| 112 | 112 | | C. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A and B of this section, $5,000,000 shall be allocated to the department of child safety for the healthy families program established by section 8-481, $4,000,000 shall be allocated to the Arizona board of regents for the Arizona area health education system established by section 15-1643, $3,000,000 shall be allocated to the department of health services to fund the teenage pregnancy prevention programs established in Laws 1995, chapter 190, sections 2 and 3, $2,000,000 shall be allocated to the department of health services for the health start program established by section 36-697, $2,000,000 shall be deposited in the disease control research fund established by section 36-274, $1,300,000 shall be deposited in the problem gambling fund established by section 5-1318.01, $1,300,000 shall be allocated to the department of gaming division of problem gambling for treatment and prevention of problem gambling and problem gambling education programs and $1,000,000 shall be allocated to the department of health services for the federal women, infants and children food program. The allocations in this subsection shall be adjusted annually according to changes in the GDP price deflator as defined in section 41-563, and the allocations are exempt from the provisions of section 35-190 relating to lapsing of appropriations. If there are not sufficient monies available pursuant to this subsection, the allocation of monies for each program shall be reduced on a pro rata basis. |
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| 113 | 113 | | |
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| 114 | 114 | | D. If the state lottery director determines that monies available to the state general fund may not equal $84,150,000 in a fiscal year, the director shall not authorize deposits to the Arizona game and fish commission heritage fund pursuant to subsection B of this section until the deposits to the state general fund equal $84,150,000 in a fiscal year. |
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| 115 | 115 | | |
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| 116 | 116 | | E. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A through D of this section, $1,000,000 or the remaining balance in the fund, whichever is less, is appropriated to the department of economic security for grants to nonprofit organizations, including faith-based organizations, for homeless emergency and transitional shelters and related support services. The department of economic security shall submit a report on the amounts, recipients, purposes and results of each grant to the governor, the speaker of the house of representatives and the president of the senate on or before December 31 of each year for the prior fiscal year and shall provide a copy of this report to the secretary of state. |
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| 117 | 117 | | |
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| 118 | 118 | | F. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A through E of this section, and after a total of at least $99,640,000 has been deposited in the state general fund, $3,500,000 shall be deposited in the Arizona competes fund established by section 41-1545.01. The balance in the state lottery fund remaining after deposits into the Arizona competes fund shall be deposited in the university capital improvement lease-to-own and bond fund established by section 15-1682.03, up to a maximum of eighty percent of the total annual payments of lease-to-own and bond agreements entered into by the Arizona board of regents. |
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| 119 | 119 | | |
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| 120 | 120 | | G. All monies remaining in the state lottery fund after the appropriations and deposits authorized in this section shall be deposited in the state general fund. |
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| 121 | 121 | | |
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| 122 | 122 | | H. Except for monies expended for debt service of revenue bonds as provided in subsection A of this section, monies expended under subsection A of this section are subject to legislative appropriation. |
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| 123 | 123 | | |
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| 124 | 124 | | I. The commission shall transfer monies prescribed in this section on a quarterly basis. END_STATUTE |
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| 125 | 125 | | |
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| 126 | 126 | | Sec. 3. Section 5-1305, Arizona Revised Statutes, is amended to read: |
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| 127 | 127 | | |
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| 128 | 128 | | START_STATUTE5-1305. License review; approval; fees; material change; exemption; display; transferability |
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| 129 | 129 | | |
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| 130 | 130 | | A. On receipt of a completed application and the required fee, the department shall conduct the necessary background investigation to ensure the applicant is qualified for licensure. On completion of the necessary background investigation, the department shall either issue a license or deny the application. If the application is denied, the department shall forward a statement setting forth the grounds for denial to the applicant together with all other documents on which the department relied, to the extent allowed by law. |
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| 131 | 131 | | |
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| 132 | 132 | | B. The department may conduct additional background investigations of any person required to be licensed at any time while the license remains valid. The issuance of a license does not create or imply a right of employment or continued employment. The event wagering operator or limited event wagering operator may not employ and, if already employed, shall terminate an event wagering employee if it is determined that the person meets any of the following criteria: |
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| 133 | 133 | | |
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| 134 | 134 | | 1. Has been convicted of any gaming offense. |
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| 135 | 135 | | |
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| 136 | 136 | | 2. Has been convicted of a felony in the seven years before submitting an application unless that felony has been set aside. |
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| 137 | 137 | | |
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| 138 | 138 | | 3. Has ever been convicted of a felony related to extortion, burglary, larceny, bribery, embezzlement, robbery, racketeering, money laundering, forgery, fraud, murder, voluntary manslaughter, a sexual offense that requires the individual to register pursuant to section 13-3821 or kidnapping. |
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| 139 | 139 | | |
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| 140 | 140 | | 4. Knowingly and wilfully provides materially important false statements or information or omits materially important information on the person's employment application or background questionnaire. |
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| 141 | 141 | | |
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| 142 | 142 | | 5. Is a person whose prior activities, criminal record, if any, or reputation, habits and associations pose a threat to the public interest or to the effective regulation and control of gaming or create or enhance the dangers of unsuitable, unfair or illegal practices, methods and activities in the conduct of gaming or the carrying on of the business and financial arrangements incidental thereto. |
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| 143 | 143 | | |
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| 144 | 144 | | C. Not later than sixty days after the department receives a complete application, the department shall issue a license to the applicant unless the background investigation the department conducts discloses that the applicant has a criminal history or unless other grounds sufficient to disqualify the applicant are apparent on the face of the application. If more than ten applications are received for a particular license type, the department shall adopt a process for ensuring an equal opportunity for all qualified applicants to obtain a license. The department shall review and approve or deny an application for a license as provided in title 41, chapter 6, article 10. |
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| 145 | 145 | | |
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| 146 | 146 | | D. For each application for licensure or renewal of a license that is approved under this section, the amount of the application fee must be credited toward the licensee's license fee and the licensee shall remit the balance of the initial license fee to the department on approval of a license. The fees collected from licensees under this section shall be deposited in the event wagering fund established by section 5-1318 and used by the department to pay the actual operating and administrative expenses incurred for event wagering. |
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| 147 | 147 | | |
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| 148 | 148 | | E. Each person licensed under this chapter shall give the department written notice within thirty days after a material change is made to information provided in the licensee's application for a license or renewal. |
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| 149 | 149 | | |
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| 150 | 150 | | F. Indian tribes within this state that are operating event wagering exclusively on Indian lands are exempt from the licensure requirements of this section. Event wagering on Indian lands is governed by the tribal-state gaming compact, its appendices, any amendments and the Indian gaming regulatory act (P.L. 100-497; 102 stat. 2467). |
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| 151 | 151 | | |
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| 152 | 152 | | G. Each licensee shall display its license conspicuously in the licensee's place of business or have the license available for inspection by an agent of the department or a law enforcement agency. Each licensee that operates an event wagering platform shall conspicuously display a notice of the license on its platform's landing page. |
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| 153 | 153 | | |
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| 154 | 154 | | H. The department shall keep all information, records, interviews, reports, statements, memoranda or other data supplied to or used by the department in the course of its review or investigation of an application for an event wagering operator license or renewal of a license confidential. The department shall immediately release any materials described in this subsection to any member of the legislature on written request. The materials described in this subsection are not exempt from disclosure in compliance with a court order, subpoena, statutory audit or pursuant to title 39, chapter 1, article 2. |
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| 155 | 155 | | |
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| 156 | 156 | | I. A license issued under this chapter may not be transferred to another person or entity without prior approval of the department. The department shall work with applicants and licensees to ensure there is no gap in the validity of the license. END_STATUTE |
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| 157 | 157 | | |
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| 158 | 158 | | Sec. 4. Title 5, chapter 11, article 1, Arizona Revised Statutes, is amended by adding section 5-1318.01, to read: |
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| 159 | 159 | | |
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| 160 | 160 | | START_STATUTE5-1318.01. Problem gambling fund; fees |
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| 161 | 161 | | |
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| 162 | 162 | | A. The problem gambling fund is established consisting of monies deposited pursuant to section 5-572 and subsection b of this section and from any other source. The department shall administer the fund. monies in the fund are continuously appropriated |
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| 163 | 163 | | |
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| 164 | 164 | | b. Except as otherwise provided in this chapter, the department shall establish a problem gambling fee and require each licensed event wagering operator that is licensed to operate both mobile event wagering and retail event wagering pursuant to section 5-1304, subsection a, paragraph 1 to quarterly pay to the department the fee. |
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| 165 | 165 | | |
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| 166 | 166 | | C. The monies in the problem gambling fund shall fund the division of problem gambling established within the department. The division will use monies in the fund to do both of the following: |
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| 167 | 167 | | |
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| 168 | 168 | | 1. Address prevention and treatment of problem gambling and gambling addiction. |
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| 169 | 169 | | |
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| 170 | 170 | | 2. education programs relating to problem gambling. END_STATUTE |
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| 171 | 171 | | |
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| 172 | 172 | | Sec. 5. Effective date |
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| 173 | 173 | | |
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| 174 | 174 | | Section 5-572, Arizona Revised Statutes, as amended by Laws 2024, chapter 210, section 3 and this act, is effective from and after June 30, 2027. |
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| 175 | 175 | | |
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| 176 | 176 | | Sec. 6. Legislative intent; definition |
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| 177 | 177 | | |
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| 178 | 178 | | A. The legislature intends that the department of gaming set the problem gambling fee prescribed in section 5-1318.01, Arizona Revised Statutes, as added by this act, at an amount of at least three percent of the event wagering operator's adjusted gross annual event wagering receipts. |
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| 179 | 179 | | |
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| 180 | 180 | | B. For the purposes of this section, "adjusted gross annual event wagering receipts" means the gross event wagering receipts that are derived from wagers minus all winnings paid to players and before any deductions are made, including free bet reductions. |
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