Center for Gaming Research
UNLVGamingReseach on Facebook UNLVGaming on Twitter
UNLV
Arizona Gaming Summary

Background

Arizona has legal betting on the lottery, horse racing, and Class III tribal government casinos.

Tribal Casinos

Arizona Tribal-State Gaming Compacts took effect in 1993. In 2001, terms of the current Compacts with 21 Arizona Tribes were successfully negotiated for State regulation of approved Class III gaming activities on Tribal lands in Arizona. The Compacts (or agreements) contain detailed regulatory, technical, and internal control standards for the operation of Indian gaming. The Compacts last for ten years and can be renewed for one term of ten years and one additional term of three years.

The current Compact was passed by Arizona voters in the November 2002 election as Proposition 202, which is part of state law in Section 5-601.02 of the Arizona Revised Statutes. The Compact updated regulatory parameters for Class III gaming activities and required that the Tribes make monetary contributions to the State based on the net revenues received from gaming operations. The Proposition also authorized the State to enter into and maintain Tribal Compacts for up to 23 years.

Currently, 15 Tribes operate 22 Class III casinos. Another 6 Tribes do not have casinos but have slot machine rights they lease to other Tribes with casinos.

Tribal Contributions: Under the Compacts, Tribes with casinos contribute 1 to 8 percent of their gaming revenue each year to the State, and to cities, towns, and counties. The contribution is determined on a sliding scale based on the amount of gaming revenue.

12% distributed by the Tribe to the cities, towns and counties of their choosing for community services and public safety programs for local governments The remaining 88% of the Tribe’s total annual contribution goes to the Arizona Benefits Fund on a quarterly basis and provides funding for the Arizona Department of Gaming and the Office of Problem Gambling.

 

Lottery

Development: The Arizona lottery was created by a public referendum in 1980, with the first ticket sales in 1981. The lottery has subsequently been extended by the voters on three occasions.

Beneficiaries: By law, proceeds from the Arizona Lottery ticket sales go to programs and organizations in four specific state pillars — or areas — of focus that include a variety of beneficiaries. As of FY11, the four Arizona Lottery pillars are: economic and business development, education, environmental issues, and health and public welfare.

For more information see the Ariziona Lottery website.

Arizona Lottery data (fiscal year)

 

Year
Total Revenues
Prize Liabilities
Prize %
Net Revenue
Net %
2004
366,582,105
200,302,437
54.64%
107,977,003
29.46%
2005
397,560,945
220,297,791
55.41%
116,116,167
29.21%
2006
468,696,827
259,093,779
55.28%
140,430,528
29.96%
2007
462,199,980
257,493,027
55.71%
139,225,362
30.12%
2008
472,937,278
262,486,159
55.50%
143,473,505
30.34%
2009
484,486,104
282,482,645
58.31%
127,228,919
26.26%
2010
551,491,701
333,105,221
60.40%
141,743,109
25.70%
2011
583,537,493
360,491,232
61.78%
144,692,517
24.80%
2012
646,848,442
396,714,155
61.33%
164,718,013
25.46%
2013
694,154,874
426,143,442
61.39%
177,727,147
25.60%

Powered by GamblingCompliance.com. For current information, visit GamblingData.com.

Total revenue is total ticket sales plus interest earned on the lottery fund balance and miscellaneous revenue sources . Prize liability is the total amount of prize money paid back to winners. Net Revenue is the total revenue minus vendor and retailer commissions and prize payouts and operating expenses; it is equal to "operating income." Prize and net revenue percentages are taken from the total revenues.

Arizona Gaming Timeline

1949: Arizona Racing Commission established to oversee racing and pari-putuel wagering

1980: Voters pass a referendum approving the Arizona Lottery

1981: First ticket sales

1993: State/tribal compacts take effect, opening the door for Class III gaming on compacted tribal lands.

1997: Voters reauthorize the lottery for five more years

2002: Voters reauthorize the lottery for ten more years

2010: Legislators reauthorize the lottery through 2035.


Follow UNLVgaming on Follow unlvgaming on Twitter Twitter and UNLVGamingResearch on Facebook

© 2016 University of Nevada, Las Vegas. Do not copy or reuse without permission.


Last modified Friday, 23-May-2014 16:07:07 PDT