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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
horse racing; geofencing; wagering; licensing
Purpose
Requires racetrack enclosures and additional wagering facilities that are licensed to accept wagers to use a geofencing system to monitor wagers on mobile wagering platforms. Requires wagers placed through a mobile wagering platform at a racetrack enclosure or additional wagering facility to be treated as a wager made by a patron on the grounds of the racetrack enclosure. Allows the Arizona Department of Gaming (ADG) to issue an advance deposit wagering provider (ADWP) license.
Background
Statute defines advance deposit wagering as a type of pari-mutuel
wagering that allows someone to deposit monies in an account with an advance
deposit provider ahead of time and use those monies for pari-mutuel wagering on
live or simulcast racing that an advance deposit
pari-mutuel wagering permittee accepts or makes (A.R.S.
§ 5-101).
The Arizona Racing Commission may allow for advance deposit wagering through
the permittance of an ADWP, if the ADWP secures approval from the racing
authority in Arizona where it is located and annually secures approval from: 1)
the commercial live horse racing permittees in a county where the ADWP or
commercial live racing permittee accepts wagers for horse racing; and 2) the
organization that represents the majority of owners and trainers at each of the
commercial live horse racing enclosures in each county. Providers must pay
source market fees on wagers placed on horse races to commercial live horse
racing permittees in Arizona (A.R.S.
§ 5-112). An ADWP may allow an advance deposit wager account holder to make
wagers on racing meetings or simulcasted races from the account by telephone,
in person or over the internet through websites and on mobile devices as
authorized by event wagering laws (A.A.C.
R19-2-410; A.R.S.
§ 5-1314).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
Geofencing of Racetrack Enclosures and Additional Wagering Facilities
1. Requires all racetrack enclosures and additional wagering facilities that are licensed to accept wagers to use a geofencing system to dynamically monitor the physical location of patrons attempting to place wagers on mobile wagering platforms.
2. Requires the geofencing system to perform:
a) a geolocation check before placement of a wager in an authorized session; and
b) recurring geolocation checks throughout a patron's authorized session.
3. Requires wagers placed through a mobile wagering platform at a racetrack enclosure or additional wagering facility to be treated as a wager made by the patron on the grounds of the racetrack enclosure.
4. Requires the racetrack enclosure, the additional wagering facility or the geofence provider to provide access to real-time geofence data to the ADG and Arizona Racing Commission.
Advance Deposit Wagering Provider Licensure
5. Allows the ADG to issue an ADWP license to a person or entity that wishes to conduct advance deposit wagering.
6. Requires the person or entity to apply for an ADWP license by submitting an application on a form prescribed by the ADG.
7. Allows the ADG to charge a fee for an ADWP license as established by the ADG Racing Division.
8. Requires the ADG Racing Division to collect a licensing fee for each ADWP license issued.
9. Allows an ADWP licensee that meets statutory ADWP permitting requirements to take advance deposit wagers.
10. Subjects the holder of an ADWP license to the penalties prescribed for any violation of the law relating to horse racing.
Miscellaneous
11. Modifies the definition of ADWP to mean a betting system or multijurisdictional wagering provider that is licensed, rather than authorized, to conduct advance deposit wagering pursuant to statute.
12. Modifies the definition of license to include a license issued to officials and employees of an ADWP.
13. Makes technical changes.
14. Becomes effective on the general effective date.
Prepared by Senate Research
February 14, 2022
JT/sr