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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
gaming; racing; boxing; conflict-of-interest continuation
Purpose
Continues the Arizona Department of Gaming (ADG) for two years and the Arizona Racing Commission (Racing Commission) and the Arizona State Boxing and Mixed Martial Arts (Boxing and MMA Commission) Commission for six years. Modifies the powers and duties of the ADG, Racing Commission, and Boxing and MMA Commission.
Background
The ADG was established in 1995 to monitor tribal gaming activities in accordance with the Arizona tribal-state gaming compacts required by federal law and as authorized by statute. The ADG's regulatory authority now includes oversight of racing, pari-mutuel and simulcast wagering, unarmed combat sports, event wagering and fantasy sports contests (Laws 1995, Ch.76; A.R.S. Title 5). In 1949, the Legislature legalized pari-mutuel wagering in Arizona and established the Racing Commission to provide regulatory oversight (Laws 1949, Ch. 61; A.R.S. Title 5, Chapter 1). The Boxing and MMA Commission, established by the Legislature in 1982 as the Arizona State Boxing Commission and expanded to include mixed martial arts in 1997, is a regulatory body responsible for regulating boxing, kickboxing, tough man and mixed martial arts events in Arizona (Laws 1982, Ch. 39; A.R.S. Title 5, Chapter 2).
The House of Representatives Commerce Committee of Reference (COR) held a public meeting on January 12, 2026, and the Senate Regulatory Affairs and Government Efficiency COR held a public meeting on January 13, 2026, to review the Auditor General's Performance Audit and Sunset Review Report, consider each agency's response to the statutorily outlined sunset factors and receive public testimony. The House of Representatives and Senate CORs recommended that the ADG, Racing Commission and Boxing and MMA Commission implement the recommendations to the findings of the Auditor General's 2025 Performance Audit and Sunset Review Report. The House of Representatives and Senate CORs also recommended that the Racing Commission and Boxing and MMA Commission be continued for six years until July 1, 2032, and the ADG be continued for two years until July 1, 2028 (COR Final Report).
The ADG, Racing Commission and Boxing and MMA Commission are statutorily set to terminate on July 1, 2026, unless continued by the Legislature (A.R.S. §§ 41-3036.04; 41-3026.13; and 41-3026.22).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
ADG
1. Continues, retroactive to July 1, 2026, the ADG until January 1, 2028.
2. Repeals the ADG on January 1, 2029.
3. Requires the Director, Deputy Director, if applicable, and all employees of the ADG to complete a conflict-of-interest disclosure form either on initial appointment or on hiring as a new employee.
4. Requires the Director, Deputy Director, if applicable, and all employees of the ADG to submit an updated conflict-of-interest form annually if any conflict-of-interest information has changed.
5. Requires the ADG, by December 17 of each year, to submit all ADG audits that are conducted by a third-party auditor to the following:
a) the President of the Senate;
b) the Speaker of the House of Representatives; and
c) the Governor.
6. Requires the ADG to create and implement a complaint submission process and complaint tracking system that allows it to track and monitor complaints.
7. Requires the ADG to make the complaint submission process available on its website.
8. Requires the ADG to submit an annual report to the President of the Senate, the Speaker of the House of Representatives and the Governor including all of the following:
a) the number of complaints that were received through the complaint submission process;
b) the number of complaints received through the complaint submission process and that were dismissed; and
c) the number of complaints that were received through the complaint submission process and that were resolved.
9. Requires the ADG to review all independent ADG audits that have been conducted as of 2021 to determine if event wagering operators have paid the correct required privilege fee amounts as prescribed by statute.
10. Requires the ADG to address and correct any overpayments or underpayments of privilege fee payments as required by rule.
Racing Commission
11. Continues, retroactive to July 1, 2026, the Racing Commission until July 1, 2032.
12. Repeals the Racing Commission on January 1, 2033.
13. Requires, under the ADG Division of Racing, the Director, the Deputy Director, if applicable, and all employees of ADG to complete a complete a conflict-of-interest disclosure form either on initial appointment or on hiring as a new employee.
14. Requires, under the ADG Division of Racing, the Director, Deputy Director, if applicable, and all employees of the ADG to submit an updated conflict-of-interest form annually if any conflict-of-interest information has changed.
Boxing and MMA Commission
15. Continues, retroactive to July 1, 2026, the Boxing and MMA Commission until July 1, 2032.
16. Repeals the Boxing and MMA Commission on January 1, 2033.
17. Requires the Executive Director, all commissioners and all employees of the Boxing and MMA Commission to complete a conflict-of-interest disclosure form on initial appointment or on hiring.
18. Requires
the Executive Director, all commissioners and all employees of the Boxing and
MMA Commission to submit an updated conflict-of-interest disclosure form
annually if any
conflict-of-interest information has changed.
Miscellaneous
19. Contains purpose statements.
20. Makes technical and conforming changes.
21. Becomes effective on the general effective date, with retroactive provisions as noted.
Prepared by Senate Research
February 8, 2026
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