Arizona Laws 5-1302. Department of gaming; powers; duties
A. The department shall enforce this chapter and supervise compliance with laws and rules relating to regulating and controlling event wagering in this state.
Terms Used In Arizona Laws 5-1302
- Contract: A legal written agreement that becomes binding when signed.
- Department: means the department of gaming. See Arizona Laws 5-1301
- 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. See Arizona Laws 5-1301
- Fraud: Intentional deception resulting in injury to another.
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Licensee: means a person that holds an event wagering operator license, limited event wagering license, supplier license or management services provider license. See Arizona Laws 5-1301
- 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. See Arizona Laws 5-1301
- 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. See Arizona Laws 5-1301
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Supplier: means a person that manufactures, distributes or supplies event wagering equipment or software, including event wagering systems. See Arizona Laws 5-1301
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
B. The department may adopt rules in accordance with this chapter and Title 41, Chapter 6.
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. Except as provided in Section 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.
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.