Arizona Revised Statutes Title 43. Taxation of Income § 43-405. Extension of withholding to gambling winnings

A. For the purposes of this title, payments of prize winnings that are subject to federal withholding pursuant to section 1441 or section 3402(q) of the internal revenue code 1 by any of the following shall be treated as if they were payments of wages by an employer to employees for a payroll period:

B. The entities listed in subsection A of this section shall deduct and withhold from each payment of prize winnings made to an individual an amount equal to twenty percent of the amount withheld pursuant to section 1441 or section 3402(q) of the internal revenue code and pay that amount to the department pursuant to this article.