Ariz. Rev. Stat. § 43-405 – Extension of withholding to gambling winnings

A. For the purposes of this title, payments of prize winnings that 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. 1. The Arizona state lottery commission under title 5, chapter 5.1.
2. 2. A permittee conducting horse or dog racing under title 5, chapter 1.
3. 3. A fantasy sports contest operator under title 5, chapter 10.
4. 4. An event wagering operator under title 5, chapter 11.
B. The entities listed in subsection A of this section shall deduct and withhold from each payment of prize winnings made to an individual an amount equal to the highest tax rate prescribed by section 43-1011.