Arizona State Lotteries Laws
State lotteries are state-run games of chance that often include both scratch-off tickets and drawings, typically for cash prizes. Arizona state lottery laws specifically earmark 29 percent of all lottery revenues for state funds and projects, and half of the revenue for prizes for winners. Learn more about Arizona's state lottery laws in the following article.
Learn about Arizona's state lottery laws in the following summary chart and/or the in-depth description below. See Details on State Lottery Laws for more information.
|Code Section||5-501, et seq.|
|Distribution of Lottery Revenue||18.5% state lottery fund (for administrative and advertising expenses); 29% commerce and economic development commission fund, clean air fund, and local transportation assistance fund; 50% payment of prizes|
|Additional Purpose of Lottery||-|
|Lottery Prize Subject to Garnishment||On prizes over $600, a set-off is allowed for any debts over $100 owed to the state, including overdue support|
|Time Limit to Claim Prize/Disposition||180 days/70% to state lottery prize fund and 30% to special advocate fund|
|Prohibited Related Activities||Sale to minor; alteration of ticket; sale by unauthorized person; sale at unauthorized price|
Arizona Revised Statutes Chapter 5.1
Arizona state lottery laws can be found in Chapter 5.1 of the Arizona Revised Statutes. Relevant portions of the laws are summarized below.
- Distribution of Lottery Revenue -- Revenue from the sales of lottery tickets is divided in the following manner in Arizona:
- 18.5% to the state lottery fund for administrative and advertising expenses;
- 29% to economic and business development, education, environmental issues, and health and public welfare; and
- 50% for the payment of prizes to winners.
- Lottery Prize Subject to Garnishment -- On lottery prizes over $600, winnings may be garnished to pay any debts over $100 owed to the state. A court may also seize lottery winnings to enforce overdue child support payments.
- Time Limit to Claim Prize/Disposition -- Lottery winners have 180 days to claim prizes. Unclaimed prizes will be divided with 70% going to the state lottery prize fund to be used as prizes in future games and 30% going to the special advocate fund.
- Right to Assign -- Generally, a lottery winner may not assign his or her right to the prize to another person unless it goes to the estate of the deceased prize winner, the beneficiary of the deceased prize winner, or another person as directed by an appropriate court order.
- Prohibited Related Activities --The following activities related to lotteries are prohibited under Arizona Law:
- Selling a lottery tickets to a minor;
- Altering a lottery ticket;
- Sale of a ticket by an unauthorized person; and
- Sale of a lottery ticket at unauthorized price.
For more about Arizona lottery games, distribution of ticket proceeds, or how to apply to become a lottery retailer, visit the Arizona lottery website. Additional information is available in FindLaw’s section on Gaming laws and this article about State Lottery Laws. If you are a lottery winner, you may consider contacting financial professionals, including a tax law attorney, to help you understand the tax implications of your prize and incorporate the winnings into an appropriate financial planning. Individuals facing criminal charges for prohibited activities related to the lottery may get assistance from an experienced defense attorney.