ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

House: COM DP 5-2-0-2

HB 2813: sports betting; historic racing; revenue

Sponsor:  Representative Pierce, LD 1

Committee on Appropriations

Overview

Allows for historic racing and sports betting to be conducted in this state.

History

The Arizona Department of Gaming (Department) was established in 1995 to monitor tribal gaming activities in accordance with the Arizona tribal-state gaming compacts required by federal law and as authorized by statute.

Federal law requires an Indian tribe and the state to negotiate for a tribal-state compact governing the conduct of class III gaming activities on tribal lands (25 U.S.C. 2710).  The tribal-state gaming compacts between Arizona and the 22 federally-recognized Indian tribes in the state are substantially identical and outline the regulatory framework governing class III gaming. The Department's duties prescribed by statute and tribal-state gaming compacts include: 1) monitoring gaming operations; 2) investigating suspected compact violations; 3) conducting compact compliance reviews of gaming operations, facilities and activities of facility operators; 4) certifying gaming employees who are not enrolled tribal members; 5) certifying management contractors, financiers, manufacturers and suppliers of gaming devices, providers of gaming services and management officials; 6) administering the transfer of unused gaming device allocations; 7) providing problem gambling prevention, treatment and education; and 8) administering and allocating Indian tribes' state contributions through the Arizona Benefits Fund as outlined (A.R.S. Title 5, Chapter 6).

Provisions

☒ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteHistoric Racing (Sec. 1)

1.    Requires the Department to adopt rules to allow historic racing to be conducted as regulated gambling at racetrack enclosures and additional wagering facilities.

a)    Requires the rules to include license application procedures and approval, issuance, renewal and revocation criteria.

2.    Specifies the systems for wagering may be both manual and electronic forms of wagering.

a)    Requires the wagering to be on a closed-loop system located within a racetrack enclosure or additional wagering facility.

3.    Instructs the Director (Director) of the Department to establish application, issuance and renewal licensing fees.

4.    Defines historic racing as a form of racing that establishes pari-mutuel pools from wagers placed on previously conducted races and that is conduct by a commercial live-racing permittee or additional wagering facility.

 

Tribal-State Gaming Compact (Sec. 2)

5.    Removes statutory language that is incorporated into a tribal-state gaming compact that stipulates tribal actions that maybe taken if, after May 2, 2002, state law changes to permit a person or entity other than an Indian tribe to operate a gaming device, any form of class III gaming or poker.

Sports Betting (Sec. 3)

6.    Instructs the Department to adopt rules to allow sports betting to be conducted as regulated gambling at pari-mutuel racetrack, additional wagering facilities and casinos.

a)    Specifies the rules must include licensure requirement; and

b)    Adds the Director must establish licensing fees.

7.    Allows the betting systems to be both manual and electronic forms on a closed-loop system.

8.    Requires the Department to regulate sports betting in a manner that is consistent with the regulation of tribal gaming.

9.    Allows an Indian tribe to operate sports betting through a tribal gaming operator who is subject to licensure.

10.  Specifies the licensure of the owner, partner, shareholder of the tribal gaming operator does not include the members or government officials of an Indian tribe.

11.  Directs the Department to impose and collect an unspecified percent amount of the licensee's adjusted gross sports betting receipts.

12.  Establishes the racing purse enhancement fund consisting of monies collected from sports betting receipts.

a)    Requires the Department to administer the fund; and

b)    Outlines the distribution of monies.

13.  Defines pertinent terms.

Miscellaneous

14.  Includes sports betting and historic racing that is conducted pursuant to statute as lawful regulated gambling. (Sec. 5)

15.  Exempts sports betting and historic racing from statute relating to prohibited betting and wagering. (Sec. 6)

16.  Includes sports betting that is conducted outside a racetrack enclosure, additional wagering facility or tribal casino to the amusement tax classification. (Sec. 7)

17.  Allows certain revenues collected by an Indian tribe for sports betting to be deducted from the amusement classification tax base. (Sec. 7)

18.  Limits amounts subject to state and local taxes to 6.75% of the adjusted gross receipts. (Sec. 7)

19.  Specifies gross income and gross proceeds of sale means the receipts remaining after deducting the monies paid for winnings from gross receipts. (Sec. 7)

20.  Exempts the Department from rulemaking for one year. (Sec. 8)

21.  Contains a Prop 105 clause. (Sec. 9)

22.  Makes conforming changes. (Sec. 2, 4)

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26.                    HB 2813

27.  Initials PRB           Page 0 Approp

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