Well, the FFL's who sold to them in AZ are just plain stupid.
You can't reproduce the watermark on an AZ license with a PC, a color laser printer and a laminator.
The license has no lamination, it is a hard-stock card that has a watermark in the card.
The licenses in AZ have been that way for at least 5 years (I've only been here for 5 years). Any license made the old way with paper inside a laminate (that still has a watermark) will be incredibly old and worn out.
Those FFL's should have their licenses revoked. There are Coyote/Mexican rackets that make really good fake id's, but no idiot with $2000 of computer equipment and software is going to make a good fake AZ id.
A friend of mine tried to reproduce a license using a hard-stock card printer very similar to the DMV's printers (according to ARS 13-2002, forgery is illegal only with intent to defraud and the card was shredded immediately). Without the cardstock that they use, the watermark is distorted even when hi-resolution scanned from an original license with no modifications to any card data. These printers are very expensive, about $2000 each. It could not re-create the watermark.