Gaming in ArizonaGaming in Arizona

Paul BullisPaul BullisArizona Department of GamingArizona Department of Gaming

Courtney MoyahCourtney MoyahGila River Gaming CommissionGila River Gaming Commission

Geoffrey GonsherGeoffrey GonsherArizona Department of RacingArizona Department of Racing

Gaming in ArizonaGaming in Arizona

• Indian GamingIndian Gaming• Lottery Lottery • Racing Racing

Indian GamingIndian Gaming

• 22 Tribes (21 with 22 Tribes (21 with Gaming Compacts)Gaming Compacts)

• 15 Tribes with 15 Tribes with CasinosCasinos

• 22 Casinos22 Casinos

12,326 Slots

165 Poker Tables 282 Blackjack Tables

10 Casinos

Class III Net Win

(Gross Gaming Revenue):

$1.5 Billion (FY2004-05)

14% Increase Over Prior Year

Tribal Contributions

Sliding Scale, up to 8% of Class III Net Win

12%: Cities, Towns & Counties

Remaining 88%$8 Million: ADOG 2%: Problem Gambling Treatment, Education & Prevention56% Instructional Improvement Fund28% Trauma & Emergency Services Fund8% Arizona Wildlife Fund8% Arizona Tourism Fund

Total Tribal Contributions

(Through FY2005-06)

$204 Million

Courtney MoyahCourtney Moyah

Executive Director, Gila River Executive Director, Gila River Gaming CommissionGaming Commission

President, Arizona Tribal President, Arizona Tribal Gaming Regulators AllianceGaming Regulators Alliance

Tribal-State Gaming CompactsTribal-State Gaming Compacts

• Effective Feb. 2003Effective Feb. 2003• 23 years = 10 year term, renewable for 23 years = 10 year term, renewable for

additional 10 years, plus 3 years to additional 10 years, plus 3 years to negotiate new Compactsnegotiate new Compacts

Tribal-State CompactsTribal-State Compacts

• Maximum of 29 Tribal casinos (currently Maximum of 29 Tribal casinos (currently 22)22)

• 16,150 slot machines maximum (currently 16,150 slot machines maximum (currently 12,326)12,326)

• 998 slot machines max per casino998 slot machines max per casino• 100 max combined Blackjack and Poker 100 max combined Blackjack and Poker

tables per casinotables per casino• Bet limits for Poker and BlackjackBet limits for Poker and Blackjack

Blackjack allowed for first timeBlackjack allowed for first time

Jackpot Poker Covered Under CompactJackpot Poker Covered Under Compact

No Tribal internet gaming as long as non-No Tribal internet gaming as long as non-tribal entities also prohibitedtribal entities also prohibited

GameManagement

System

Secure NetworkCASINO ADG

AuthorizedADG UserDesktop

Secure NetworkFile Storage

(separated by Tribe)

RouterFirewallSwitch

Network-attachedstorage

RouterVPN deviceSwitch

Intrusion Detection softwareDS1-Frame Relay

Secu

re

Network

State Electronic Access to State Electronic Access to On-line Slot SystemsOn-line Slot Systems

Slot TransfersSlot Transfers

• Tribes may transfer their rights to operate Tribes may transfer their rights to operate slot machines to other Tribes, for a feeslot machines to other Tribes, for a fee

• Allows remote Tribes to benefit from Allows remote Tribes to benefit from gaming without having to operate a casinogaming without having to operate a casino

Havasupai Tribe

Courtney MoyahCourtney Moyah

Executive Director, Gila River Executive Director, Gila River Gaming CommissionGaming Commission

President, Arizona Tribal President, Arizona Tribal Gaming Regulators AllianceGaming Regulators Alliance

How State and Tribes RegulateHow State and Tribes Regulate

• Tribal-State Compacts govern Tribal-State Tribal-State Compacts govern Tribal-State relationshiprelationship

• Establish respective roles for Tribes and Establish respective roles for Tribes and StateState

Tribes Are the Primary

Regulators

Arizona Department of GamingArizona Department of Gaming

Arizona Department of GamingArizona Department of Gaming

• 106 Employees106 Employees• 32 Certified Peace Officers32 Certified Peace Officers• 18 Accountants & Auditors, incl. CPAs, 18 Accountants & Auditors, incl. CPAs,

CFEs, CIAs, and forensic accountantsCFEs, CIAs, and forensic accountants• $11.7 million budget$11.7 million budget

Gaming Employee Certification UnitGaming Employee Certification Unit

• Certify Gaming Certify Gaming EmployeesEmployees

• 2000 New Applicants 2000 New Applicants in 2005in 2005

• 7000 Renewal 7000 Renewal Applicants in 2005Applicants in 2005

• Annual RenewalAnnual Renewal

Gaming Vendor Certification UnitGaming Vendor Certification Unit

• Certify Gaming VendorsCertify Gaming Vendors• All Vendors of Gaming All Vendors of Gaming

EquipmentEquipment• Gaming Services over Gaming Services over

$10,000 in One Month$10,000 in One Month• 550 Active Vendors550 Active Vendors• 245 Vendor Background 245 Vendor Background

Investigations in 2005Investigations in 2005• Good for 2 yearsGood for 2 years

Machine Compliance UnitMachine Compliance Unit

• Certify All New, Certify All New, Modified, Upgraded Modified, Upgraded Slot Machines Slot Machines (12,326)(12,326)

• Random Inspections Random Inspections (50 machines 5x per (50 machines 5x per year per casino)year per casino)

• 1000 Cert & Insp per 1000 Cert & Insp per MonthMonth

Investigations & Inspections UnitInvestigations & Inspections Unit

• Tribal AgentsTribal Agents• Work Closely With Tribal Work Closely With Tribal

RegulatorsRegulators• On-Site Inspections of Gaming On-Site Inspections of Gaming

Facilities, Incl. SurveillanceFacilities, Incl. Surveillance• Conduct Investigations as Conduct Investigations as

Necessary, in Coordination and Necessary, in Coordination and Cooperation With Tribal Cooperation With Tribal RegulatorsRegulators

Intelligence UnitIntelligence Unit

• Gathers/Disseminates Info Concerning Gathers/Disseminates Info Concerning Threats to Gaming OperationsThreats to Gaming Operations

• Compiles and Analyzes Incident ReportsCompiles and Analyzes Incident Reports• Self-Exclusion List: 1250 people, for 1, 5 or Self-Exclusion List: 1250 people, for 1, 5 or

10 years10 years

Compact Compliance UnitCompact Compliance Unit

• Compact Compliance Compact Compliance ReviewsReviews

• Every Casino Every YearEvery Casino Every Year• Entire Compact and All Entire Compact and All

AppendicesAppendices

Tribal Contributions UnitTribal Contributions Unit

• Tribal Contributions AuditsTribal Contributions Audits• 2 Audits Per Tribe Per Year2 Audits Per Tribe Per Year• Review External Audit and Review External Audit and

WorkpapersWorkpapers• Monthly and Quarterly Monthly and Quarterly

ReportsReports• Quarterly PaymentsQuarterly Payments• Assure the PublicAssure the Public

Information Technology UnitInformation Technology Unit

• Implemented and Implemented and Maintains an Electronic Maintains an Electronic Licensing and Regulatory Licensing and Regulatory SystemSystem

• State Electronic Access to State Electronic Access to Slot Monitoring SystemsSlot Monitoring Systems

AdministrationAdministration

• Budget and Plan for the Budget and Plan for the DepartmentDepartment

• Manage the Department’s Manage the Department’s Facilities, Purchasing, Travel, Facilities, Purchasing, Travel, Fleet, etc.Fleet, etc.

• Perform All Accounting FunctionsPerform All Accounting Functions• Human ResourcesHuman Resources• ITIT

Courtney MoyahCourtney Moyah

Executive Director, Gila River Executive Director, Gila River Gaming CommissionGaming Commission

President, Arizona Tribal President, Arizona Tribal Gaming Regulators AllianceGaming Regulators Alliance

Office of Problem GamblingOffice of Problem Gambling

• $1.8 million Budget, $1.8 million Budget, Funded by Tribal Funded by Tribal Contributions and LotteryContributions and Lottery

• Education, Treatment and Education, Treatment and PreventionPrevention

• 24/7 Toll-free Hotline24/7 Toll-free Hotline• Counselors throughout StateCounselors throughout State• TrainingTraining

Arizona LotteryArizona Lottery

• Begun in 1981Begun in 1981• Has Returned Over Has Returned Over

$1.8 billion to the $1.8 billion to the StateState

• $116.4 million in $116.4 million in FY2005FY2005

Arizona LotteryArizona Lottery• General FundGeneral Fund• Local Transportation Assistance FundLocal Transportation Assistance Fund• Heritage FundHeritage Fund• Healthy ArizonaHealthy Arizona• County Assistance FundCounty Assistance Fund• Mass TransitMass Transit• Economic Development FundEconomic Development Fund• Court Appointed Special Advocate FundCourt Appointed Special Advocate Fund• Department of Gaming (Problem Gambling)Department of Gaming (Problem Gambling)

RacingRacing

Geoffrey GonsherGeoffrey Gonsher

DirectorDirector

Arizona Department Arizona Department of Racingof Racing

QuestionsQuestions