SB 1671: gaming; racing; boxing; conflict-of-interest continuation - Arizona

Senate Engrossed Version (03/02/2026) → Chaptered Version · 5 edits

MODERATE

This bill amends Arizona gaming laws to establish strict conflict-of-interest disclosure requirements for gaming, racing, and boxing officials, while simultaneously terminating the Arizona Racing Commission and the Boxing Commission by July 1, 2032. The changes centralize regulatory authority within the Department of Gaming and mandate annual conflict-of-interest reporting for all employees, aiming to prevent financial conflicts that could compromise regulatory integrity.

Scope change

The bill significantly narrows the scope of independent regulatory bodies by terminating the Arizona Racing Commission and the Arizona State Boxing and Mixed Martial Arts Commission, transferring their functions to the Department of Gaming.

TIMELINE

The Arizona Racing Commission and the Arizona State Boxing and Mixed Martial Arts Commission are set to terminate on July 1, 2032, with their respective statutes repealed on January 1, 2033.

REQUIREMENT

New mandatory conflict-of-interest disclosure forms must be completed annually by the director, deputy director, all employees, and commissioners if any conflict information has changed.

The Department of Gaming must now include independent audit results and corrective actions regarding fee overpayments or underpayments in its annual report.

ELIGIBILITY

Eligibility criteria for the Racing Division director now require a minimum of five years of experience in business and administration, in addition to having no financial interest in the racing industry.

ENFORCEMENT

A new complaint tracking system must be implemented to monitor complaints related to gaming, racing, and boxing, with an annual report submitted to state leadership.

House Engrossed Version (06/11/2026) → Senate Engrossed Version (03/02/2026) · 4 edits · Jun 12, 2026

MODERATE

The bill was transitioned from the House to the Senate version, which included significant substantive changes to the Department of Gaming's structure and reporting requirements. Key additions include a new mandate for the department to submit third-party audits to state leadership, a revised complaint tracking system, and a requirement to review historical audit data to correct past overpayments or underpayments of fees. The effective dates for certain repeals were also adjusted to align with the Senate version.

Scope change

The bill's scope expanded to include specific mandates for third-party audit reporting and a retrospective review of fee payments for event wagering operators, while the repeal of the Department of Gaming was adjusted to take effect retroactively to July 1, 2026, in the Senate version.

REQUIREMENT

Added a requirement for the Department of Gaming to submit all third-party audits to the Senate, House, and Governor by December 17 each year.

Modified the complaint tracking system requirements to include specific reporting on the number of complaints received, dismissed, and resolved.

ENFORCEMENT

Added a mandate for the department to review all independent audits conducted as of 2021 to identify and correct any overpayments or underpayments of privilege fees.

TIMELINE

Changed the retroactive effective date for repeals and new sections from July 1, 2027 (House version) to July 1, 2026 (Senate version).

Introduced Version → House Engrossed Version (06/11/2026) · 5 edits · Jun 12, 2026

MODERATE

This bill amends Arizona gaming laws to strengthen conflict-of-interest rules for directors and employees, requiring annual disclosure forms. It establishes specific termination dates for the Racing Commission, Boxing Commission, and Gaming Department in 2032-2033, while explicitly continuing their operations until those dates. The bill also adds new requirements for tracking complaints and reporting audit results, and repeals outdated sections related to horse racing wagering.

Scope change

The bill clarifies the operational timeline for state gaming agencies, setting a specific sunset date for the Racing Commission, Boxing Commission, and Gaming Department in 2032-2033, while simultaneously ensuring their continued operation through that date.

REQUIREMENT

Mandates that directors, deputy directors, and all department employees complete and submit updated conflict-of-interest disclosure forms annually if information changes.

Requires the creation of a complaint tracking system and an annual report detailing aggregate complaint data and independent audit results.

TIMELINE

Sets a specific termination date of July 1, 2032, for the Racing Commission and Boxing Commission, and July 1, 2032, for the Gaming Department, with repeals effective January 1, 2033.

ENFORCEMENT

Establishes that employment or financial interests of close relatives in the gambling industry are grounds for dismissal of directors and employees.

TECHNICAL

Repeals sections 41-3026.04, 41-3026.13, and 41-3026.22, which appear to be outdated provisions related to horse racing wagering.

gaming; racing; boxing; conflict-of-interest continuation

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