The law moves fantasy sports and unarmed combat money into the state's event wagering fund, lets the Department of Gaming spend up to $500,000 a year of its share on problem gambling programs, sets a 0.5% regulatory assessment on horse race wagering for fiscal year 2026-2027, and loosens racing rules for first-time starter horses in 2026 and 2027.
Official title: amusements; 2026-2027
- September 12, 2026
- Fiscal year 2026-2027: 0.5% regulatory assessment on horse race wagering
- Applies to 2026 and 2027 race meetings; repealed after December 31, 2027: First-time starter horse racing rule
What changes
BeforeFantasy sports fees and late penalties went into a separate fantasy sports contest fund, and boxing and unarmed combat license fees and gross receipts taxes went into a subaccount of the racing regulation fund.
NowThese monies go into the event wagering fund, including its unarmed combat subaccount. The fantasy sports contest fund is repealed, and its remaining money moves to the event wagering fund.
BeforeThe Department of Gaming could spend up to 10% of event wagering fund monies on its annual costs of regulating and enforcing event wagering.
NowThe same 10% limit now also covers regulating and enforcing chapter 10 of the gaming title. Out of that 10%, the department may spend up to $500,000 each fiscal year to support problem gambling programs. It may also use those monies, plus private donations, grants or federal money for problem gambling, to give grants for problem gambling purposes.
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NowIn fiscal year 2026-2027, the Department of Gaming must collect a regulatory assessment from each commercial horse racing permittee equal to 0.5% of amounts wagered on live and simulcast races. The money comes out of the pari-mutuel pools (the shared betting pools) and is in addition to the amounts permittees may already deduct.
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NowFor race meetings in 2026 and 2027, the department may let a horse race for the first time if it has gate approval and at least 2 timed workouts. One workout must be an out-of-the-gate workout held within 60 days of the race.
BeforeMoney in the liquor licenses fund above $700,000 at the end of each fiscal year went back to the state general fund.
NowMoney in the liquor licenses fund above $700,000 on December 31 of each year goes back to the state general fund.
Who it affects
- Horse racing permittees, horse owners and bettors
- Fantasy sports contest operators
- Boxing and unarmed combat promoters and licensees
- People served by problem gambling programs
- Arizona Department of Gaming
- Department of Liquor Licenses and Control
What you need to do
Nothing.
What the law doesn't answer
- How much money is in the fantasy sports contest fund being transferred
- Which specific problem gambling programs or grant recipients will be funded
- What chapter 10 of the gaming title covers
- How the 0.5% assessment money will be used
- What rules applied to first-time starter horses before this law
This summary describes the law as enacted. Later laws, court rulings or referendum petitions can change the picture. Check the official text for the current wording.