Arizona Department of Gaming—Department assesses compliance with Tribal-State Gaming Compact, but should enhance its gaming facility employee recertification and horse racing licensure processes

The Arizona Department of Gaming (Department) regulates and monitors tribal gaming in the State. Tribal gaming in Arizona is governed by a formal agreement, or Compact, negotiated between the State and participating tribes. We found that the Department has developed various processes to help ensure compliance with the Compact, including verifying that tribes appropriately contribute monies to the State. We also found that the Department appropriately certified tribal gaming facility vendors and employees reviewed, but it should continue to enhance the tribal gaming facility employee recertification process by performing required financial background checks. The Department is also responsible for regulating and overseeing pari-mutuel horse racing and wagering in Arizona, including licensing horse-racing participants. We found that although the Department appropriately issued racing licenses reviewed, it should improve its background investigation process, enhance supervisory review of licensing decisions, and formalize its process for conducting licensing interviews.