event wagering; data

SB 1801 establishes tax deduction rules for event wagering operators in Arizona, specifically limiting how much they can deduct for free bets or promotional credits from their taxable income. It allows operators a deduction equal to up to 20% of gross wagering receipts for the first two years, 15% in year three, and 10% in years four and five, with no deduction permitted after that. The bill directly affects licensed event wagering operators - including sports teams, racetracks, and tribal entities - and defines key terms like "event wagering" (covering bets on sports, e-sports, and other competitions) and "adjusted gross receipts." The policy creates a structured, time-limited tax incentive to encourage operator participation while maintaining clear definitions for regulatory compliance.