Arizona has 16 tribes operating 24 Class III gaming casinos in the state. Another six tribes do not have casinos but can lease their Class III gaming devices to other tribes in the state under a “transfer agreement.” Under the tribal-state compact, there is a maximum of 20,500 slot machines permitted in the state, including the transfer agreements.
Responsibility for regulatory oversight of tribal gaming operations is divided between the tribes and the state. Section 6 of the tribal-state compact mandates tribal regulation of the compact provisions, while Section 7 described the state monitoring of the compact provisions.
The tribes, through a tribal gaming agency, are generally responsible for the regulation of all gaming activities pursuant to the tribe’s gaming ordinance and for the enforcement of the compact and its appendices on behalf of the tribe.
As per the compacts, the Arizona Department of Gaming has the authority to monitor the tribe’s gaming
AVAILABLE GAMING LICENSES
Gaming Manufacturers and Suppliers License
Provider of Gaming Services License
Management Contractors and Financiers License
|In exchange for substantial exclusivity given to Arizona tribes, the tribes agreed to contribute a percentage of their Class III net win to the state. The percentages are distributed in the following manner:|
|Net Win||Share to State|
|$0 – $25m||1 percent|
|$25m – $75m||3 percent|
|$75m – $100m||6 percent|
|More than $100m||8 percent|
TAX PROMOTIONAL CREDITS
WITHHOLDINGS ON WINNINGS
STATE USE OF REVENUE
88% to the Arizona Benefits Fund. 12% to cities, towns or counties for government services or deposits into the Commerce and Economic Development Commission Local Communities Fund
TRIBAL USE OF REVENUE
Requirements as described in IGRA
STATUTORY FUNDING REQUIREMENT
A portion of the money contributed to the Arizona Benefits Fund helps fund responsible gaming programs in the state.
Tribes must establish procedures for advising people about state’s self-exclusion list.
COMPLIMENTARY ALCOHOLIC DRINKS
Tribes may not advertise to minors or target those on the self-exclusion list.
ON-PREMISE DISPLAY REQUIREMENT
Must place signs at entrance and exit stating help is available for problem gamblers.
Must be 21 to wager in a tribal gaming facility.
OPERATION ON HOLIDAYS
Gaming devices must be approved by an independent testing laboratory licensed by a tribal gaming office and certified by the state gaming agency.
ANTI-MONEY LAUNDERING REQUIREMENTS
Federal compliance requirements under the Bank Secrecy Act apply.
Federal shipping requirements under the Johnson Act apply.
RESTRICTIONS ON POLITICAL CONTRIBUTIONS
CREDIT OFFERED TO PATRONS
Legislation enacted in April 2021 allows for 20 licenses to be awarded, with ten licenses available to the state’s Class III gaming tribes and ten to professional sports franchises and facilities.
Mobile allowed statewide.
Sports-betting revenue is taxed at a rate of 8 percent for sports wagering conducted at a retail location. For revenue generated through mobile applications or websites, there is a 10 percent tax on sports wagering revenue.
INITIAL LICENSING FEE
LICENSE RENEWAL FEE
Licensees may not accept wagers on high-school sporting events or, only with respect to proposition bets, collegiate sporting events.
OFFICIAL DATA MANDATE
If the governing body of a sport or sports league, organization or association or other authorized entity that maintains official league data opts to provide official league data for the purposes of event wagering, an event wagering operator must exclusively use official league data for purposes of tier two wagers.
Related Research Reports
Responsible Gaming Regulations and Statutes Guide
A comprehensive state-by-state collection of the statutes and regulations around responsible gaming
State of the States 2022
The definitive study of the U.S. commercial gaming industry in 2021, providing key financial performance data and other metrics for the 33 states and D.C. with commercial gaming operations.