Proprietor of Venice bar sounded rough — in a state! (7)

I haven't cracked this one yet — but the brilliant team at Times for the Times have:

Aural wordplay [sounded rough]: ARIZONA / “’arry’s owner” (proprietor of Venice bar  – Harry’s Bar). This was my last one in.  I had spotted the answer as a possibility much earlier  but dismissed it because I couldn’t see how it fitted the wordplay. It was only when I had all the checkers in place that I had to accept it was correct and then I set out with new resolve to understand why. Please click the link above for more details if required.