43-405. Extension of withholding to gambling
winnings
A. For the purposes of this title, payments of prize winnings which are subject to
federal withholding pursuant to section 1441 or section 3402(q) of the internal revenue
code by any of the following shall be treated as if they were payments of wages by an
employer to employees for a payroll period:
1. The Arizona state lottery commission under title 5, chapter 5.
2. A permittee conducting horse or dog racing under title 5, chapter 1.
B. The lottery commission and permittees shall deduct and withhold from each
payment of prize winnings an amount equal to twenty per cent of the amount withheld
pursuant to section 1441 or section 3402(q) of the internal revenue code and pay that
amount to the department pursuant to this article.
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