Arizona Spent $1M On Problem Gambling In FY 2022; Saw Uptick In Racing, MMA

The annual report for fiscal year 2022 (July 2021-June 2022) by the Arizona Department of Gaming highlighted a few notable points.

To begin with, the Division of Problem Gambling within the ADG spent over $1 million on treating problem gambling in the fiscal year 2022.

Secondly, for the first time since the onset of the COVID-19 pandemic in Spring 2020, all three horse racing tracks in Arizona conducted live races in the Financial Year 2022.

In FY 2022, the boxing and mixed martial arts industry made a significant comeback. The state saw an increase of nearly two dozen fights compared to the previous fiscal year.

The state receives quarterly payments from tribes.

Arizona houses 22 federally-recognized Native American tribes. Sixteen of these tribes operate casino gambling, while the remaining six lease out their slots gaming rights to the casino-operating tribes. Despite the flourishing online sports betting scene in the state, Arizona still forbids online casinos.

Tribes are required to make quarterly payments to the state each year, based on a percentage of their gross gaming revenue, following the approval of Proposition 202 in 2002. In FY 2022, the tribes’ combined contribution amounted to $123.6 million.

The Arizona Benefits Fund, which supports education, hospital, wildlife, and tourism services, receives the majority (88%) of the money. The rest (12%) is distributed among cities, towns, and counties with casinos. In the fiscal year 2022, the contribution was $15.1 million.

Treatment of problem gambling has cost over $1.1 million.

Annually, ADG allocates 2% of the Arizona Benefits Fund to the Division of Problem Gambling (DPG) for funding education and treatment for problem gambling. The DPG was established to promote education, prevention, and treatment of problem gambling, benefiting both the affected individuals and their families.

In the fiscal year 2022, the state expended over $1.1 million on treating problem gambling. The DPG allocated a total of $1.76 million in the same year for treatment expenses and operational costs. They conducted 32 hours of training for treatment providers who then provided care for 816 individuals.

In the fiscal year 2022, Arizona recorded 363 new enrollments out of 2,152 active self-exclusions.

The DPG offers assistance to those struggling with problem gambling through several methods, including:

• Providing education to individuals at exhibits and conferences
• Offering counseling, specialized care and a helpline available 24/7.
• Self-exclusion programs in casinos on a voluntary basis

Increases were observed across the board in the racing division.

In FY 2022, Arizona posted significant figures in the racing division.

Live races experienced a 7% rise in total handle from 2021, with growth observed in all areas such as simulcast races, teletracking, as well as on-track and off-track handle.

Revenues for the state saw a rise of 23.2% from 2021. In Fiscal Year 2022, total bets amounted to $355.4 million, from which the state’s share was $1.8 million. This is a 22.5% increase compared to 2021.

The popularity of Boxing and MMA is increasing in Arizona.

The Racing Regulation Fund provides the financial resources for boxing and mixed martial arts (MMA) in the state. In the fiscal year 2022, the total expenditure was $1.8 million.

The Boxing & Mixed Martial Arts Division of ADG is responsible for the regulation and support of unarmed sporting events in Arizona, with a focus on promoting safety among participants and fighters.

This division also channels revenue from event and licensing fees, along with other tax levies, back into the Racing Regulation Fund.

In the fiscal year 2022, the number of boxing and MMA events increased by 23 compared to 2021. The budget for fiscal year 2023 has been elevated to $2.3 million. Over the past three years, the average budget has approximately been $1.8 million.

The ADG reported a breakdown of various events from 2022 as follows:

• Title Fight in Arizona: 1
• 4 new promoters
• Number of US/regional title fights: 6
• Number of world title fights: 6
• 8 Arizona events broadcasted globally
• Number of events held: 32