The Arizona Department of Gaming (ADG) has released a public service announcement (pdf) cautioning residents and visitors about the dangers of illegal online sweepstakes and casino platforms operating within the state. The regulatory body is urging bettors to verify the legitimacy of online gaming services before engaging in any activity to protect themselves from financial risks and potential fraud.

As online sweepstakes and casino-style platforms continue to gain popularity, concerns over their legality have surfaced in multiple states, including Arizona. The ADG has identified several unregulated operators targeting local bettors and is emphasizing the importance of responsible gaming practices.

“Many of these operations are not legal or regulated, leaving users vulnerable to fraud, identity theft, and other serious risks,” the ADG stated in its public service announcement (PSA), which has the following headline: “Tips for Safe and Responsible Online Gaming”. The department highlighted that because these platforms operate outside the regulatory framework, consumers who experience disputes or financial losses have little to no recourse for recovering their funds.

The ADG’s warning aligns with its broader efforts to prevent financial exploitation and identity theft. The agency noted that some sweepstakes operators have been implicated in fraudulent activities, including false tax claims and unauthorized charges. The release of this PSA coincides with Identity Theft Awareness Week, reinforcing the regulator’s commitment to protecting consumers from illicit gaming activities.

Understanding Arizona’s Online Sweepstakes Laws

Under Arizona law, most online sweepstakes and casino-style games remain unregulated. While certain free-to-play games are allowed, they must adhere to strict legal guidelines. According to state regulations, a legitimate free-to-play contest must not require participants to make purchases or provide consideration. Additionally, these games must offer the same level of access and odds to all players, regardless of whether they choose to make voluntary contributions or donations.

Despite these legal distinctions, the ADG has observed an uptick in unlicensed operators promoting online sweepstakes in ways that may mislead consumers into believing they are participating in lawful gaming activities.

Previous Warnings on Gambling Scams

This is not the first time Arizona regulators have addressed gaming-related scams. Last year, the ADG issued a separate warning about fraudulent gaming calls in Arizona and nearby states. Reports indicated that scammers were falsely claiming to represent the ADG while attempting to extract personal and financial information from unsuspecting players. In many cases, these fraudsters promised sweepstakes prizes or winnings without requiring prior participation.

The ADG continues to advise residents to be cautious when engaging in any online gaming activity, especially when dealing with platforms that lack official state licensing. Players are encouraged to consult the ADG’s official resources for information on legal gaming options and to report suspicious activities to the relevant authorities.

Moreover, in November 2024, the National Council of Legislators from Gaming States unveiled its draft of the Model Internet Gaming Act, aiming to establish a framework for iGaming regulation across the United States. The proposed legislation includes measures for the taxation of iGaming, responsible gambling procedures and requirements, and an outright ban on sweepstakes casinos.