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Can I offer contests that involve entry fees in Arizona? What are the requirements?

Based on the documents provided, it is possible to offer contests that involve entry fees in Arizona, but a license is required from the department as a fantasy sports contest operator [1.2]. To obtain a license, an applicant must submit a completed application, along with any required information, to the department. The department shall determine the form and content of the application. Each application shall be accompanied by the applicant’s current photograph and the fee required by the department. The applicant must also submit a full set of fingerprints to the department for the purpose of obtaining a state and federal criminal records check [2.1].

Entry fees shall be paid from funds in a player account deposited by cash or cash equivalent. All entry fees shall be transacted through the fantasy sports contest platform. Upon acceptance of an entry fee, an electronic fantasy sports contest entry shall be immediately issued. Upon verification, winnings from fantasy sports contest entries shall be immediately deposited into the player account. A fantasy sports contest entry shall only be purchased from a verified player account. A fantasy sports contest entry shall not be accepted upon an event whose outcome has already been determined. If a player cancels a fantasy sports contest entry prior to the start of the fantasy sports contest, and the cancel request is approved by the responsible party, the fantasy sports contest entry fee shall be refunded to the player account after verification by the fantasy sports contest platform. An entry fee shall not be accepted from a person who is purchasing the fantasy sports contest entry for the benefit of another for compensation or is purchasing the fantasy sports contest entry in violation of tribal, state, or federal law [1.1].

An individual may offer one or more fantasy sports contests if all of the following apply:

  1. The fantasy sports contests are not made available to the general public.
  2. Each of the fantasy sports contests is limited to not more than fifteen total fantasy sports contest players.
  3. The individual collects not more than $10,000 in total entry fees for all fantasy sports contests offered in a calendar year, at least ninety-five percent of which are awarded to the fantasy sports contest players [2.1].

Therefore, to offer contests that involve entry fees in Arizona, you need to obtain a license from the department as a fantasy sports contest operator, and comply with the requirements for entry fees and limitations on the number of players and total entry fees that can be collected.

Source(s):
Jurisdiction

Arizona