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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
Senate: RAGE DPA 5-0-2-0 | Third Reading 26-3-1-0-0House: COM DPA 9-0-1-2 |
SB1671: gaming; racing; boxing; conflict-of-interest continuation
Sponsor: Senator Bolick, LD 2
Caucus & COW
Overview
Continues the Arizona Department of Gaming (ADG), Arizona Racing Commission (Racing Commission) and the Arizona State Boxing & Mixed Martial Arts Commission (Boxing & MMA Commission) for six years. Includes conflict-of-interest requirements.
History
Established in 1995, the ADG regulates and monitors tribal gaming activities in accordance with Arizona tribal-state gaming compacts as required by federal law and authorized by statute. The ADG's statutory responsibilities include: 1) licensing and regulation of event wagering and fantasy sports contests; 2) supporting programs to reduce problem gambling; 3) overseeing live horse racing, harness racing, pari-mutuel and simulcast wagering; and 4) providing staff support for the Racing Commission and Boxing & MMA Commission.
The Arizona Racing Commission regulates and supervises all racing meetings held and pari-mutuel wagering conducted in Arizona. The Racing Commission is statutorily required to: 1) issue racing dates; 2) prepare and adopt rules governing racing and pari-mutuel wagering; 3) conduct hearings on permit applications and rehearings on licensing and regulatory decisions; and 4) conduct all review of applications to construct capital improvements at racetracks.
The Boxing & MMA Commission is responsible for regulating and supervising all boxing, kickboxing, tough man, and mixed martial arts events in Arizona, including issuing licenses to referees, judges, matchmakers, promoters, trainers, ring announcers, timekeepers, ringside physicians, inspectors, mixed martial arts combatants, boxers, managers and seconds (Title 5, Chapter 1, 2, and 6, A.R.S.)
The House of Representatives Commerce Committee of Reference (COR) met on January 13, 2026, to review the Auditor General's Performance Audit and Sunset Review Report (25-106) of the ADG, Racing Commission and Boxing & MMA Commission, consider the ADG's responses to the statutorily-outlined sunset factors and receive public testimony.
The Commerce COR recommended that the ADG be continued for two years and that the Racing Commission and Boxing & MMA Commission be continued for six years.
The ADG, Racing Commission and Boxing & MMA Commission are statutorily set to terminate on July 1, 2026, unless continued by the Legislature (A.R.S. §§ 41-3026.04, 41-3026.13, 41-3026.22).
Provisions
Arizona Department of Gaming
1. Requires ADG, by December 17 of each year, to submit all audits conducted by third party auditors to the President of the Senate, the Speaker of the House of Representatives, and the Governor. (Sec. 3)
2. Instructs ADG to create and implement a submission process and tracking system to track and monitor complaints to make the submission process available on ADG's website. (Sec. 4)
3. Requires ADG to submit an annual report to the President of the Senate, the Speaker of the House of Representatives, and the Governor including information on the number of complaints that were received and dismissed or resolved. (Sec. 4)
4. Requires ADG to review all independent audits conducted since 2021 to determine if event wagering operators are paid the correct privilege fees and to correct any identified overpayments or underpayments. (Sec. 10)
Conflict-Of-Interest Requirements
5. Requires the director, deputy director, executive director, commissioners and all employees of the Division of Racing, the Boxing & MMA Commission and ADG to:
a. complete a conflict-of-interest disclosure form upon their initial appointment and hiring; and
b. submit an updated form annually if any conflict-of-interest information has changed. (Sec. 1, 2, 3)
Continuations
6. Continues, retroactive to July 1, 2026, the Racing Commission, the Boxing & MMA Commission and ADG for six years until July 1, 2032. (Sec. 5, 6, 11)
7. Repeals the Racing Commission, the Boxing & MMA Commission and ADG on January 1, 2033. (Sec. 6)
Miscellaneous
8. Contains purpose statements relating to the Racing Commission, the Arizona State Boxing & MMA Commission and ADG. (Sec. 7, 8, 9)
9. Adds that failure for the Division of Racing employees to comply with completing and submitting the conflict-of-interest information is grounds for dismissal. (Sec. 1)
Amendments
Committee on Commerce
1. Removes certain ADG reporting requirements relating to the audits conducted by third-party auditors and complaints that were received, dismissed or resolved.
2. Requires ADG to submit an annual report that includes aggregate data of complaints that are received by the department relating to persons or entities that are licensed or regulated by ADG to the Legislature and the Governor by September 30.
3. Adds that the annual report relating to active licensees must include a statement that indicates the number of independent audit results that are required to be submitted by licensed event wagering operators and management service providers and include any corrective actions taken by the department regarding the overpayment or underpayment of privilege fees.
4. Removes the requirement for ADG to review all independent audits conducted since 2021.
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8. Initials PB SB 1671
9. 3/11/2026 Page 0 Caucus & COW
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