ARS § 5-111.01

5-111.01 - Breakage; definition; tax; disposition 5-111.01 . Breakage; definition; tax; disposition A. The term "breakage" means the odd cents by which the amount payable on each dollar wagered in a pari-mutuel pool exceeds a multiple of ten cents, except that in the case of minus pools breakage means the odd cents by which the amount payable exceeds a multiple of five cents. A person licensed under this chapter to conduct a racing meeting shall deduct the breakage from the pari-mutuel pool and such amounts shall be distributed as provided by law. B. The breakage deducted by a horse racing or harness racing permittee shall be distributed as follows: 1. Fifty per cent shall be retained by the permittee. 2. Twenty-five per cent shall be retained by the permittee and used to supplement the general purse structure. 3. Twenty-five per cent shall be retained by the permittee to supplement purses in races in which Arizona bred horses are winners. C. The breakage deducted by a dog racing permittee shall be retained by the dog racing permittee.