Senate committee recommends confirmation of Jackie Johnson to lead Arizona Department of Gaming

The Arizona Senate Committee on Director Nominations on March 6 recommended the full Senate confirm Jacqueline Ray “Jackie” Johnson as director of the Arizona Department of Gaming following a confirmation hearing that examined her record since joining the agency and the department’s response to illegal online gaming and problem gambling.

Chairman Jay Kaufman opened the hearing by citing the committee’s statutory role and saying nominees would be evaluated under the executive authority referenced in the hearing as “ARS 38 dash 2 11.” He said the committee’s priorities include “protecting public health, safety, and welfare under the least restrictive form of regulation,” language the chairman referenced from the hearing as “ARS 40 one-three 502.”

Johnson, who told the committee she has served as the department’s director since February 2023, outlined her legal and regulatory background and described agency priorities she has emphasized while in the post: combating illegal online gaming, expanding problem-gambling treatment and prevention services statewide, strengthening enforcement through an intelligence unit, and improving safety oversight in racing and unarmed combat sports.

“We follow the law at the Department of Gaming,” Johnson said in response to questions about sports-wagering rules and privilege fees. She described the department’s responsibility as executing statutes and providing information to policymakers if legislative changes are desired.

On illegal gaming, Johnson described an intelligence unit made up of POST-certified law enforcement officers that investigates tips and refers matters to prosecutors when necessary. She said the department has pursued enforcement actions, including an operation that blocked an offshore illegal online-gaming operator from operating in Arizona. Johnson told senators the department is collaborating with local law enforcement, prosecutorial offices and a federal task force to address jurisdictional issues posed by offshore operators.

Johnson described expansion of the Department’s problem-gambling division, which now provides subsidized treatment for affected individuals and family members, has a new contract for financial counseling services, and is building peer-support and rural outreach programs. “We also have various educational outreach,” she said, noting the division was previously concentrated in the Phoenix metro area and that the department has worked to expand services into rural Arizona.

Several senators pressed Johnson on the 2021 tribal gaming compact implementation and the state’s sports-wagering rollout. Senator Lela Ortiz (Senator Ortiz) asked whether the sports-betting revenue projections made under the prior administration had materialized; Johnson said she was not familiar with exact past projections but offered to provide the data to the committee. She said the department follows the laws and rules that govern privilege-fee calculations and licensing and that policy changes would be for the Legislature to consider.

Senators also questioned Johnson about conflict-of-interest safeguards stemming from her prior work as a gaming lawyer and with tribal regulatory offices. Johnson said she and department counsel created a conflicts policy when she joined the agency and that she avoids one-on-one interactions with former clients; she said the policy also accounts for appearances of conflict.

Committee members asked about other priorities and operations: the department’s move to track measurable five-year outcomes (including reducing noncompliance and adverse incidents), use and oversight of artificial intelligence, safety measures for horse racing and concussion testing for combat sports, and efforts to make Arizona an attractive venue for boxing and MMA events. Johnson said regulators do not set industry policy but conduct stakeholder outreach, monitor trends, and develop regulations and safety protocols; she noted enhanced veterinary exams and other safety steps in racing and the department’s concussion-testing protocol for unarmed combat sports.

The committee also heard brief discussion about tribal contributions reported by the department and a quarterly drop in Q3 FY24; Johnson said she would provide the committee with detailed reporting to explain year-to-year and seasonal variances.

With no members of the public requesting to speak, Senator Freischauer moved that the committee recommend confirmation of Jacqueline Ray Johnson. The roll call recorded five aye votes, no nay votes, and the committee forwarded the nomination to the full Senate.