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SB1801 - 572R - I Ver
REFERENCE TITLE:
event wagering; data
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SB 1801
Introduced by
Senator
Gonzales
AN
ACT
amending
sections 5-1301 and 5-1314, Arizona Revised Statutes; relating to event
wagering.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 5-1301, Arizona Revised
Statutes, is amended to read:
START_STATUTE
5-1301.
Definitions
In this chapter, unless the context otherwise requires:
1. "Adjusted gross event wagering
receipts" means an event wagering operator's gross wagering receipts,
excluding voided bets, minus winnings paid to authorized participants and any
federal excise tax. A deduction from adjusted gross event wagering
receipts equal to the value of free bets or promotional credits redeemed by
authorized participants may be taken as provided in this paragraph.� The
deduction under this paragraph for free bets or promotional credits is limited
to the first five years following
the effective date of this
section
April 15, 2021
as follows:
(a) For years one and two, a deduction not to exceed
twenty percent of an event wagering operator's gross wagering receipts.
(b) For year three, a deduction not to exceed
fifteen percent of an event wagering operator's gross wagering receipts.
(c) For years four and five, a deduction not to
exceed ten percent of an event wagering operator's gross wagering receipts.
(d) For year six and each year thereafter, a
deduction of free bets is not allowed. January 1 following the year
in which the event wagering operator begins event wagering operations is
considered the first year of event wagering for the purposes of this
paragraph. An event wagering operator may deduct up to twenty
percent of an event wagering operator's gross wagering receipts during any
period that the operator conducts event wagering before January 1 of the first
year of event wagering operations.
2. "Department" means the department of
gaming.
3. "E-sport
event
"
means an organized, multiplayer video game competition, particularly between
professional players, individually or as teams.
4. "Event wagering":
(a) Means accepting wagers on sports events or other
events, portions of sports events or other events, the individual performance
statistics of athletes in a sports event or combination of sports events or the
individual performance of individuals in other events or a combination of other
events by any system or method of wagering, including in person or over the
Internet through websites and on mobile devices.
(b) Does not include a fantasy sports contest as
defined in section 5-1201.
5. "Event wagering employee" means an
employee of an event wagering operator, sports facility, management services
provider or limited event wagering operator who is directly involved in the
management or control of the conduct of event wagering under this chapter in
this state.
6. "Event wagering facility" means a
facility at which event wagering is conducted under this chapter.
7. "Event wagering operator" means either:
(a) An owner or operator of an Arizona professional
sports team or franchise, an operator of a sports facility in this state that
hosts an annual tournament on the PGA tour or a promoter of a national
association for stock car auto racing national touring race in this state, or
the designee of such an owner, operator or promoter, who is licensed to offer
event wagering under this chapter.� If an owner, operator or promoter that
qualified for an event wagering operator license appoints a designee, the designee
will be considered the event wagering operator and the licensee with respect to
the applicable license for the purposes of this chapter.
(b) An Arizona Indian tribe or an entity fully owned
by an Arizona Indian tribe, or its designee, licensed to operate only mobile
event wagering outside the boundaries of its Indian lands and throughout this
state if it has signed the most recent tribal-state gaming compact and
any applicable appendices or amendments. If an Indian tribe that
qualified for an event wagering operator license appoints a designee, the
designee will be considered the event wagering operator and the licensee with respect
to the applicable license for the purposes of this chapter.
10.
8.
"Licensee"
means a person that holds an event wagering operator license, limited event
wagering license, supplier license or management services provider license.
8.
9.
"Limited
event wagering operator" means a racetrack enclosure or additional
wagering facility that holds a permit issued by the division of racing to offer
wagers on horseracing and that is licensed under this chapter.
11.
10.
"Management
services provider" means a person that operates, manages or controls event
wagering authorized by this chapter on behalf of an event wagering operator or
limited event wagering operator, including developing or operating event wagering
platforms and providing odds, lines and global risk management, and may provide
services to more than one licensed event wagering operator or licensed limited
event wagering operator.
9. "Official league data"
means statistics, results, outcomes and other data related to a sports event or
other event obtained pursuant to an agreement with the relevant sports
governing body or an entity expressly authorized by the sports governing body
to provide such information to licensees that authorizes the use of such data
for determining the outcome of sports wagers on sports events or other events.
12.
11.
"Other
event" means a competition of relative skill or an event authorized by the
department under this chapter.
13.
12.
"Person"
means an individual, partnership, committee, association, corporation
,
or
Indian tribe or an entity fully
owned by an Indian tribe, or any other organization or group of persons.
14.
13.
"Professional sport" means a sport
conducted at the highest level league or organizational play for its respective
sport and includes baseball, basketball, football, golf, hockey, soccer and
motorsports.
15.
14.
"Prohibited
conduct" includes any statement, action or other communication intended to
unlawfully influence, manipulate or control a betting outcome of a sports event
or other event
or
of any individual occurrence or
performance in a sports event or other event in exchange for financial gain or
to avoid financial or physical harm.
16.
15.
"Prohibited
participant" means:
(a) Any individual whose participation may undermine
the integrity of the wagering
,
or
the
sports event or the other event.
(b) Any individual who is prohibited from placing a
wager as an agent, proxy or because of self-exclusion.
(c) Any individual who is an athlete, coach,
referee, player, trainer or personnel of a sports organization in any sports
event or other event overseen by that individual's sports organization who,
based on information that is not publicly available, has the ability to
determine or to unlawfully influence the outcome of a wager.
(d) An individual who holds a position of authority
or influence sufficient to exert influence over the participants in a sporting
contest, including coaches, managers, handlers and athletic trainers, such that
their actions can affect the outcome of a wager.
(e) An individual with access to exclusive
information on any sports event or other event overseen by that individual's
sports governing body that is not publicly available information or any
individual identified by any lists provided by the sports governing body to the
department.
17.
16.
"Sports
event" means a professional sport or athletic event, a collegiate sport or
athletic event, a motor race event, an e-sport event or an olympic event.
18.
17.
"Sports
facility" means a facility that is owned by a commercial, state or local
government or quasi-governmental entity that hosts professional sports
events and that holds a seating capacity of more than ten thousand persons at
its primary facility, one location in this state that hosts an annual golf
tournament on the PGA tour and one location that holds an outdoor motorsports
facility that hosts a national association for stock car auto racing national
touring race.
19.
18.
"Sports
governing body" means an organization headquartered in the United States
that prescribes final rules and enforces codes of conduct with respect to a
sports event and participants in a sports event.
22.
19.
"Supplier"
means a person that manufactures, distributes or supplies event wagering
equipment or software, including event wagering systems.
20. "Tier one sports wager" means a sports
wager that is determined solely by the final score or final outcome of the
sports event and that is placed before the sports event has begun.
21. "Tier two sports wager" means a sports
wager that is not a tier one sports wager.
23.
22.
"Wager":
(a) Means a sum of money or thing of value risked on
an uncertain occurrence.
(b) Includes tier one and tier two sports wagers,
single-game bets, teaser bets, parlays, over-under bets, moneyline bets,
pools, exchange wagering, in-game wagering, in-play bets, proposition
bets, straight bets and other wagers approved by the department.
END_STATUTE
Sec. 2. Section 5-1314, Arizona Revised
Statutes, is amended to read:
START_STATUTE
5-1314.
Event wagering authorized
A. Notwithstanding any other law relating to
wagering except for
title 5,
chapter 1
of
this title
and title 13, chapter 33, the operation of event wagering is
lawful only if the event wagering is conducted in accordance with this chapter
and any other relevant laws and rules.
B. Notwithstanding section 5-112, wagers on
racing meetings or simulcasted races may be made, offered or received through
the means that other wagers allowed by this chapter are made, offered or
received unless otherwise prohibited by federal law.
C. Each event wagering operator shall adopt and
adhere to a written, comprehensive policy outlining the house rules governing
the acceptance of wagers and payouts.� The policy and rules must be approved by
the department before the event wagering operator accepts wagers.� The policy
and rules must be readily available to a bettor at any event wagering facility
location and on any event wagering platform.
D. The department shall adopt rules regarding:
1. The manner in which an event wagering operator
accepts wagers from and issues payouts to bettors, including payouts in excess
of $10,000.
2. Reporting requirements necessary to comply with
the bank secrecy act (P.L. 91-508; 84 Stat. 1114) and patriot act
(P.L. 107-56; 115 Stat. 272) and for any other applicable laws and
rules governing reporting suspicious wagers.
E. Each wager placed in accordance with this chapter
is deemed to be an enforceable contract under law.
F.
An event wagering operator, as
prescribed in section 5-1304, subsection A, may use official league data,
nonofficial league data or alternative league data for the purposes of tier two
sports wagers.
�If the governing body of a sport or sports league,
organization or association or other authorized entity
or
provider of league data
that maintains
or provides
official
league data opts to provide official league data for the purposes of event
wagering,
an event wagering operator shall exclusively use
The
official league data
for purposes of
tier two sports wagers unless the event wagering operator can demonstrate to
the department that the governing body of a sport or sports league,
organization or association or other authorized entity cannot provide a feed of
official league data for tier two sports wagers in accordance with commercially
reasonable terms, as determined by the department
shall
not be bundled.� The authorized entity or provider of official league data
shall list, price, offer, lease and sell official league data separately by
league or sport and the event wagering operator may choose specific league data
based on a single league or sport.� An event wagering operator shall not be
required to purchase official league data for a fixed-price, multi-league data
or by a sport menu
.
END_STATUTE