SB1736 is an Arizona amusements measure that makes a series of changes to the state’s racing, unarmed combat, horse racing, and related alcohol-service laws. It continues to route racing- and combat-sport-related revenues into the racing regulation fund and creates an unarmed combat subaccount within that fund for license fees and other revenues. The bill also preserves the existing 4% gross-receipts tax on boxing contests, clarifies the treatment of complimentary tickets, and keeps the licensing and medical-exam renewal framework for combat sports participants.
The bill also adds several temporary, industry-specific provisions. For fiscal year 2025-2026, it imposes a 0.5% regulatory assessment on commercial racing permittees based on pari-mutuel wagering amounts. It allows first-time starter horses to race in 2025 and 2026 if they have gate approval and at least two timed workouts, including one out-of-the-gate workout within 60 days of the race. Separately, it authorizes liquor producers and wholesalers through June 30, 2027, to sponsor and advertise for concerts held at certain temporary extensions of on-sale retail premises adjacent to multipurpose facilities, with that authority repealed at the end of 2027.
Impact
SB1736 amends Arizona Revised Statutes sections governing racing regulation funds, boxing and unarmed combat revenue collection, and combatant licensing and medical examinations. It also creates a new short-term regulatory assessment on commercial racing permittees, temporarily relaxes eligibility rules for certain first-time starter horses, and temporarily expands sponsorship and advertising opportunities for liquor producers and wholesalers tied to large concert venues. The bill affects the Department of Gaming, the racing and unarmed combat regulatory structure, commercial racing permittees, horse owners and trainers, boxing promoters, combat sport licensees, and liquor industry participants serving large event venues.
Sentiment
The bill appears to have been generally supported, but not unanimously. It advanced through the Senate and House with majority support, including 17-12 on Senate third reading and 40-16 on House third reading, and it received favorable committee votes. The inclusion of an emergency declaration for the broader bill package suggests lawmakers viewed the measure as time-sensitive and operationally important for the affected industries.
Contention
The main points of contention likely centered on the new 0.5% assessment on commercial racing permittees, the temporary loosening of horse-racing entry requirements for first-time starters, and the alcohol sponsorship/advertising authorization for events at temporarily extended premises. Those provisions benefit specific industry stakeholders but may have raised concerns about added costs, regulatory relaxation, or expanded alcohol marketing near large venues. The split floor votes indicate some legislative disagreement, though the bill still secured enough support to pass.