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Arizona Revised Statutes Title 5. Amusements and Sports § 5-1302. Department of gaming; powers; duties

Current as of January 01, 2025 | Updated by Findlaw Staff

A. The department shall enforce this chapter and supervise compliance with laws and rules relating to regulating and controlling event wagering in this state.

B. The department may adopt rules in accordance with this chapter and title 41, chapter 6.  1

C. The department shall evaluate all applicants to determine suitability for issuing all event wagering operator licenses, limited event wagering operator licenses, supplier licenses and management services provider licenses and license renewals and shall charge and collect all fees pursuant to this chapter.

D. The department may deny, revoke or suspend licenses or renewals or deny an applicant's request to withdraw a license application.

E. The department shall conduct background checks of event wagering operators, limited event wagering operators, management services providers and event wagering suppliers and may monitor and conduct periodic audits of event wagering operations and providers.

F. Hearings shall be conducted pursuant to title 41, chapter 6, article 10.  2 Except as provided in § 41-1092.08, subsection H, any party aggrieved by a final order or decision of the department may seek judicial review pursuant to title 12, chapter 7, article 6.  3

G. The department shall oversee event wagering and develop standards and procedures and engage in other duties as the director of the department prescribes to further the purposes of this chapter, including establishing and enforcing standards and procedures for:

1. Collecting, depositing and disbursing all applicable license fees and payments as required by this chapter.

2. Operating event wagering and maintaining, testing, inspecting, approving and auditing event wagering accounts, platforms, hardware, software and data, including player, financial, accounting and wagering data.

3. Operating event wagering facilities, including location, security and surveillance, departmental access, inspections and approvals.

4. Licensing and requirements for the use of geolocation services to reasonably ensure persons engaging in event wagering are located in this state or another departmentally authorized location allowed by this chapter at the time of event wagering.

5. Approving other events on which wagers may be taken consistent with this chapter.

6. Establishing mechanisms designed to detect and prevent the unauthorized use of player accounts and to detect and prevent fraud, money laundering and collusion, including a requirement that event wagering operations contract with a departmentally licensed integrity monitoring provider.

7. Paying winning wagers, reporting taxes and collecting debt setoffs from a payout of winnings that triggers the licensee's obligation to file a form W-2G or a substantially equivalent form with the United States internal revenue service, including overdue child support payments, state tax debt and debts as established by the department of economic security.

H. The department may adopt rules authorizing event wagering operators to offset loss and manage risk, directly or with a third party approved by the department, through the use of a liquidity pool in this state or another jurisdiction, if the event wagering operator or its management services provider is licensed by such jurisdiction to operate an event wagering or sports betting business. An event wagering operator's use of a liquidity pool does not eliminate its duty to ensure that it has sufficient monies available to pay bettors.

1 Section 41-1001 et seq.
2 Section 41-1092 et seq.
3 Section 12-901 et seq.
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Cite this article: FindLaw.com - Arizona Revised Statutes Title 5. Amusements and Sports § 5-1302. Department of gaming; powers; duties - last updated January 01, 2025 | https://codes.findlaw.com/az/title-5-amusements-and-sports/az-rev-st-sect-5-1302/

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