Assigned to GOV FOR
COMMITTEE
Assigned to GOV FOR
COMMITTEE
ARIZONA STATE SENATE
Fifty-Third Legislature, Second Regular Session
class III gaming; revenue distribution
Purpose
Establishes restrictions and revenue distribution for class III gaming, if such gaming is authorized by the state.
Background
The Arizona Department of Gaming (Department) regulates tribal gaming activities, pari-mutuel racing and wagering, in addition to boxing and mixed martial arts. Laws 1995, Chapter 76 created the Department of which the Director is appointed by the Governor (A.R.S. § 5-604).
Regulated gambling includes either: 1) gambling conducted in accordance with a tribal-state gaming compact or in accordance with the requirements of the Indian Gaming Regulatory Act of 1988; or 2) gambling that is operated and controlled following statutes, rules or orders (A.R.S. §§ 13-3301 & 3302). According to the Department, examples of class III gaming include slot machines, keno and house-banked poker, and blackjack table games.
If class III gaming is authorized by the state, there may be an impact on the state General Fund associated with this legislation.
Provisions
1. Stipulates if class III gaming is authorized by the state, that was not previously authorized in bars, beer and wine bars, casinos and racetracks outside of Indian reservations, the entire share of revenue from the gaming will be annually appropriated by the Legislature as follows:
a) 40 percent to the Department of Public Safety (DPS) for any purpose specified by the DPS Director;
b) 40 percent for public school program funding in kindergarten and grades 1 through 12;
c) 2.5 percent to the Attorney General for deposit in the Internet Crimes Against Children Enforcement Fund;
d) 2.5 percent to the Arizona Health Care Cost Containment System for opioid addiction treatment programs;
e) 5 percent to be divided equally among Arizona counties; and
f) 10 percent retained in the state General Fund for any purposes prescribed by law.
2. Limits class III gaming to table top slot machines, if such gaming is authorized by the state, in bars and beer and wine bars.
3. Limits class III gaming to slot machines, if such gaming is authorized by the state, at racetracks.
4. Allows the city or town council to prohibit class III gaming, where a bar, beer and wine bar, casino or racetrack is located outside an Indian reservation, if class III gaming is authorized by the state.
5. Allows a county board of supervisors to prohibit class III gaming if the outlined locations are not located in a city or town, if class III gaming is authorized by the state.
6. Requires the Department, if class III gaming is authorized by the state, to assess and collect license fees for bars, beer and wine bars, casinos and racetracks that submit applications to the Department to conduct class III gaming.
7. Specifies that class III gaming is not authorized, that was not previously allowed in bars, beer and wine bars, casinos and racetracks, located outside the boundaries of Indian reservations.
8. Defines class III gaming as all forms of gaming that are not class I gaming or class II gaming.
9. Becomes effective on the general effective date.
Prepared by Senate Research
January 29, 2018
JO/lat