Bill to create new, unified Arizona Gaming Commission takes step forward

Arizona has taken another step in its road to consolidating the state’s three regulators -the Arizona Racing Commission, the Arizona State Boxing and Mixed Martial Arts Commission, and the Department of Gaming- into a single, new state gaming commission. The bill is now headed to a Senate Appropriations Committee hearing, scheduled for this week.

On Monday, the Arizona House Rules Committee voted 8-0 to advance House Bill 2509. Introduced by Republican Leo Biasiucci, the proposal seeks to create a new agency in charge of overseeing gaming, racing, boxing and mixed martial arts, instead of having separate entities for each activity. If passed, the act is effective “from and after June 30, 2023.” 

The legislation calls for the creation of the Arizona Gaming Commission, a six-member body composed of residents of the Grand Canyon State. The director of the commission shall have “at least” five years of experience in public or business administration.

They will be joined at the commission by one member with at least five years of experience in law enforcement, appointed by the governor; while one member shall be a certified public accountant with at least five years of experience in general accounting, principles and practice of corporate finance, general finance, gaming or economics, also appointed by the governor.

The agency is completed with the appointment of three public members, one chosen by the governor, one appointed by the president of the Senate, and one appointed by the speaker of the House of Representatives, the text of the bill reads.

The initial terms of the members appointed by the governor are to expire in staggered years, beginning on the last Monday in January 2025, the last Monday in January 2026, and the last Monday in January 2027. The initial terms of the appointees by the president of the Senate and the speaker of the House of Representatives expire on the last Monday in January 2026.

After the initial terms, each member shall be appointed for a four-year term, the legislation explains. The governor may remove any member of the commission for a justified cause, and they can also be removed by a vote of a majority of the members of the commission without cause.

The commission “shall have an office located in Phoenix” and “may maintain an office in Tucson.” A person who has a financial interest, either directly or indirectly, in gaming is “not qualified” for membership, appointment or employment by the commission. The same applies to a person who holds elected office, or any officer of a political party.

As the new body would assume all the powers and duties of the previously cited three commissions, it would be in charge of enforcing all rules adopted relating to gaming, which means “all racing, boxing, kickboxing, mixed martial arts, gambling on Indian reservations, fantasy sports contests and event wagering.”

The new Arizona Gaming Commission would also be tasked with ensuring “the continued growth and success” of gaming in the state by establishing public confidence, and would regulate the location, practice, association and activities relating to licensed gaming establishments, plus the manufacturing, sale and distribution of gambling devices.

The creation of the new commission would follow the recent launch of sports betting in the Grand Canyon State. Sports betting went live in Arizona on September 9, 2021. The state made 20 licenses available, 10 for tribes and 10 for pro sports teams, meaning there are more tribes than licenses available for them. In contrast, not all sports team licenses have yet been claimed.