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SB 1832

2026-2027; amusements

57th Legislature - Second Regular Session Introduced by Dave Farnsworth and 1 co-sponsor

Implements a temporary 0.5% regulatory assessment on pari-mutuel pools for 2026-27 and pilots gate approval plus two timed workouts for first-time starter horses, with a sunset.

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Bill Summary · SB 1832

Summary of SB 1832 (2026-2027, Arizona) – Amusements

Overview

SB 1832, introduced in the Arizona Senate (Fifty-seventh Legislature, Second Regular Session), concerns regulatory changes in the state’s gaming and horse racing sectors. The bill contains two main provisions: (1) a temporary regulatory assessment on commercial racing permittees, funded from pari-mutuel pools; and (2) a pilot authorization related to gate approval and timed workouts for first-time starter horses, with a sunset repeal date.

1) Purpose and Intent

  • Establish a temporary regulatory funding mechanism for the Arizona Department of Gaming.
  • Expand early-race assessment processes to support regulatory activities.
  • Create a safety/quality control measure for racing by allowing limited gate approval and mandatory timed workouts for first-time starter horses participating in 2026–2027 race meetings, with a clear sunset.

2) Key Provisions

A. Regulatory Assessment on Commercial Racing Permittee (Sec. 1)

  • Effective: Fiscal year 2026-2027 only.
  • Mechanism: The Department of Gaming shall establish and collect a regulatory assessment from each commercial racing permittee.
  • Funding Source: The assessment is payable from amounts deducted from pari-mutuel pools by the permittee, in addition to deductions permitted under existing statute (A.R.S. § 5-111, subsec. B).
  • Amount: The assessment equals 0.5% of the amounts wagered (the bill specifies “0.5 percent of the amounts wagered”).
  • Scope: Applies to live and simulcast races, including wagers both in-state and out-of-state handled by the permittee.

B. Gate Approval, Timed Workouts, and Sunset (Sec. 2)

  • Purpose: Address safety/competitiveness concerns by enabling a pilot for first-time starter horses.
  • A. For 2026 and 2027 race meetings:
    • The Department of Gaming may allow a first-time starter horse to race if:
    • The horse has gate approval, and
    • The horse has at least two timed workouts.
    • One of the workouts must be an out-of-the-gate workout conducted within 60 days of the race in which the horse is entered.
  • B. Sunset Clause:
    • This section (Sec. 2) is repealed on or after December 31, 2027.

3) Affected Parties

  • Commercial racing permittees (racetrack operators and entities handling pari-mutuel wagering): Subject to the new 0.5% regulatory assessment for 2026-2027.
  • Arizona Department of Gaming: Responsible for implementing the regulatory assessment and managing the gate approval/timed-workout pilot.
  • Horse racing participants (specifically first-time starters): Beneficiaries of the gate approval/timed-workout pilot, subject to the two workouts and gate approval requirement.
  • Wagering public and simulcast operators: Indirectly affected through potential changes in costs passed through pari-mutuel pools during 2026-2027.

4) Procedural and Timeline Aspects

  • Effective Period for Assessment: Fiscal year 2026-2027 (temporary).
  • Sunset for Gate/Workouts Provision: Repeal of Sec. 2 on December 31, 2027, ensuring the pilot is time-limited.
  • Legislative Action: Introduced with Senate First Reading on April 27, 2026; co-sponsored by Senators Farnsworth and Kavanagh.

5) Substantive Impact

  • Financial: Introduction of a new 0.5% regulatory assessment on pari-mutuel pools for 2026-2027, increasing costs for commercial racing permittees, which could influence wagering pool economics and potentially betting economics during the specified period.
  • Operational: Allows a controlled pilot to expand opportunities for first-time starter horses if gate-approved and adequately prepared with timed workouts, potentially affecting race preparation protocols and entry decisions for those horses.
  • Regulatory: Creates a temporary funding mechanism for the Department of Gaming and a sunset-driven regulatory experiment concerning racing readiness requirements.

If you’d like, I can compare SB 1832 to current Arizona statutes to highlight deviations or provide a plain-language Q&A for stakeholders.

Compiled from official sources — confirm details with the bill’s official record.

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