Event Wagering and Fantasy Sports Contest Intercepts

DCSS-POL-06-12.1 v.1

 

  1. POLICY STATEMENT
  2. How the Arizona Division of Child Support Services (DCSS) coordinates with the Arizona Department of Gaming (ADG) to offset event wagering winnings and/or fantasy sports contest prizes to be used as a child support enforcement remedy.
  3.  
  4. The DCSS submits all open title IV-D cases with an unpaid child support arrears balance that meet the criteria, as established by the DCSS, for debt offset of event wagering winnings and/or fantasy sports contest prizes to the ADG.
  1. APPLICABILITY
  1. This policy applies to all Arizona IV-D program staff performing Title IV-D services.
  1. AUTHORITY
  2. A.R.S. § 5-1201(6) Definitions
    A.R.S. § 5-1208 (E)(1) Requirements
    A.R.S. § 5-1301(7) Definitions
    A.R.S. § 5-1302(G)(7) Department of gaming; powers; duties
    A.R.S. § 5-1320(F)(1) Problem gambling; self-exclusion list; program; liabilities
  1. BUSINESS DECISION
  2. DCSS Business Decision Documentation
  1. DEFINITIONS
  1. ClosedEvent Wagering
  1. Accepting wagers on sports events or other events, portions of sports events or other events, the individual performance statistics of athletes in a sports event or combination of sports events or the individual performance of individuals in other events or a combination of other events by any system or method of wagering, including in person or over the Internet through websites and on mobile devices.
  2. Does not include a fantasy sports contest as defined in A.R.S. § 5-1201(6).
  1. ClosedFantasy Sports Contest
  1. A simulated game or contest that is offered to the public with an entry fee and that meets all of the following conditions:
  2. No fantasy sports contest team is composed of the entire roster of a real-world sports team.
  3. No fantasy sports contest team is composed entirely of individual athletes who are members of the same real-world sports team.
  4. Each prize or award or the value of all prizes or awards offered to winning fantasy sports contest players is made known to the fantasy sports contest players in advance of the fantasy sports contest.
  5. Each winning outcome reflects the relative knowledge and skill of the fantasy sports contest players and is determined by the aggregated statistical results of the performance of multiple individual athletes or participants selected by the fantasy sports contest player to form the fantasy sports contest team, whose individual performances in the fantasy sports contest directly correspond with the actual performance of those athletes or participants in the athletic events in which those individual athletes or participants participated.
  6. A winning outcome is not based on randomized or historical events or on the score, point spread or performance in an athletic event of a single real-world sports team, a single athlete or any combination of real-world sports teams.
  7. The fantasy sports contest does not constitute or involve and is not based on any of the following:
  8. Racing that involves animals.
  9. A game or contest ordinarily offered by a horse track or casino for money, credit or any representative of value, including any races, games or contests that involve horses or that are played with cards or dice.
  10. A slot machine or other mechanical, electromechanical or electronic device, equipment or machine.
  11. Poker, blackjack, faro, monte, keno, bingo, fan-tan, twenty-one, seven and a half, klondike, craps, chuck-a-luck, Chinese chuck-a-luck, wheel of fortune, chemin de fer, baccarat, pai gow, beat the banker, panguingue, roulette or other banking or percentage games.
  12. Any other game or device that is authorized or that is not authorized by this state.
  13. A high school or youth sporting event or any event that is not an athletic event.
  14. A contest that involves or results in betting on a race, a game, a contest or a sport that constitutes event wagering as defined in section 5-1301.
  1. CRITERIA
  1. Case is an active IV-D case.
  2. A valid court order exists.
  3. Arrears must be $100 or more.
  4. Payor must have a verified Social Security Number.
  5. Good Cause must not be an issue.
  6. Case must not be suppressed for Gaming Offset.
  7. The case is not under an administrative review, pending litigation or in an open bankruptcy.
  8. Case must not be in the closure process.
  1. PROCEDURE
  2. This policy is supported by standardized work that identifies how action related to this policy will be conducted, including responsibilities, time frames, and required actions. Note: The standardized work document is in process. When it is finalized, we will link it in this policy.
  1. HIGH LEVEL SUMMARY - ARIZONA LAW AND THE DCSS
  2. In 2021, HB2772 introduced legislation to legalize two additional forms of gaming to be regulated by the ADG. This legislation was signed into law by Governor Ducey, and as a result, Arizona Revised Statutes (A.R.S.) includes two new chapters. These chapters can be found in A.R.S., Title 5, Chapter 10 – Fantasy Sports Contests and Chapter 11 – Event Wagering.
  3.  
  4. As part of this new legislation, the ADG is provided with the authority to offset winnings and/or prizes for unpaid child support obligations from Fantasy Sports Contests and/or Event Wagering if the winnings and/or prizes meet the criteria as established in the law.
  5.  
  6. Chapter 10 – Fantasy Sports Contests
  7. A.R.S. § 5-1208(E) specifies that when a fantasy sports contest operator is required to file a form 1099-Misc, or other equivalent Internal Revenue Service (IRS) form, for a person who is identified by the DCSS as owing a child support obligation and the obligation information has been provided to the fantasy sports operator, the fantasy sports contest operator will withhold the child support obligation amount from the person’s account at the time the IRS form is filed and will transmit the amount withheld to the ADG. The ADG will forward monies to the DCSS for disbursement.
  8.  
  9. As indicated above in the statutory summary, fantasy sports contest operators offset winnings when they are required to file the IRS Form 1099-Misc. The current versions of the IRS Form 1099-Misc and Instructions are maintained by the IRS and may be revised at any time. The IRS website contains information about the current version of the Form 1099-Misc and Instructions. The instructions available on the website as of the effective date of this Policy are current as of 1/2022. The website includes a “Specific Instructions for Form 1099-Misc” section that can be found by clicking HERE and scrolling down the page. This section explains the conditions for a business to issue the Form 1099-Misc.

NOTE: The DCSS does not initiate the offset of gambling winnings. If our customers have any questions about the authority to offset winnings, the Form 1099-Misc, and/or the criteria for offsetting winnings, please refer them to the statute (and/or ADG - see contact information below), A.R.S. § 5-1208(E), and to the IRS website for specific information about the form (link above). We should not be interpreting statute or offering legal interpretation/advice to our customers.

  1.  
  2. Chapter 11 – Event Wagering
  3. A.R.S. §5-1320(F) states that before the event wagering facility operator pays out a person a payout of winnings that require the event wagering facility operator licensee to file a form W2-G, or other equivalent IRS form, the event wagering facility operator must check to see if it has information from the DCSS identifying the person as owing a child support obligation. If the person is identified as owing a child support obligation and specified criteria are met, subject to statutory withholding, the event wagering facility operator shall withhold the amount identified as the child support obligation and will transmit the amount withheld to the ADG. The ADG will forward monies to the DCSS for disbursement.
  4.  
  5. As indicated above in the statutory summary, event wagering facility operators offset winnings when they are required to file the IRS Form W2-G. The current versions of the IRS Form W2-G and Instructions are maintained by the IRS and may be revised at any time. The IRS website contains information about the current version of the Form W2-G and Instructions. The instructions available on the website as of the effective date of this Policy are current as of 1/2021. The website includes a “Specific Instructions for Form W2-G” section that can be found by clicking HERE and scrolling down the page. This section explains the conditions for a business to issue the Form W2-G.

NOTE: The DCSS does not initiate the offset of gambling winnings. If our customers have any questions about the authority to offset winnings, the Form W2-G, and/or the criteria for offsetting winnings, please refer them to the statute (and/or ADG - see contact information below), A.R.S. §5-1320(F), and to the IRS website for specific information about the form (link above). We should not be interpreting statute or offering legal interpretation/advice to our customers.

  1.  
  2. ADG contact information for customer inquiry:
  3. Hotline number: 833-652-0828
  4. Email: [email protected]

Return to beginning of Arizona Department of Gaming Intercepts Policy

 

Policy Effective Date: 8/25/23
Policy Next Review Date: 8/25/24

Back to HOME