Did some more research. I thought there was a potential loophole in the law as stated about social gambling. However AZ law is also very implicit that taking rake (already knew this was illegal and was why several B&M poker rooms were shut down) but also it appears along those notes any perceived real net positive for a place (as stupid as a gift card give away at a restaurant hosting a weekly poker tourney could be illegal as if said restaurant were to gain extra business by receiving benefit from said gambling). Oh and yes charging a cover charge (i.e. A monthly membership fee) and not raking the poker cash and tournaments is also illegal in AZ. So pretty much they've destroyed any competition to the Indians here in AZ other than home poker games with no rake by the host player.

"As defined in the statute (above), social gambling involves only players playing against each other, as in a poker game. No one but the players can win any prize or money. The venue hosting the gambling cannot promote or profit from the gambling, either by charging a fee in order to play, charging a cover charge or requiring a minimum purchase, taking a percentage of the pot. If the venue promotes, advertises, or encourages the gambling activity, then any increase in sales would be an indirect benefit, rendering the gambling illegal."