In a move to protect Arizona residents and uphold the state’s gaming laws, the Arizona Department of Gaming (ADG) has issued cease-and-desist orders to several unlicensed and unregulated gambling operators. These operators, which include both domestic and international companies, have been accused of unlawfully targeting Arizona players by offering illegal gambling services.

The impact of illegal gambling on Arizona’s economy:

The recent enforcement action includes multiple cease-and-desist orders to operators involved in a variety of illegal online gaming activities, such as sweepstakes platforms, sports betting, peer-to-peer exchanges, and unregulated online casinos. These operations, which are not authorized by the state, fail to meet Arizona’s strict gaming regulations and pose significant consumer risks, including fraud and financial loss.

The ADG’s enforcement effort is part of a broader initiative to safeguard both consumers and the state’s economy. According to ADG Director Jackie Johnson, illegal gambling, in any form, undermines both the economy and the protections that regulated operators provide. She emphasized that the department is fully committed to ensuring that licensed and regulated operators contribute positively to Arizona’s economy while offering necessary consumer protections.

As stated in the regulator’s press release (pdf), the following unlicensed operators have been targeted in the latest crackdown by the Arizona Department of Gaming. In the sweepstakes category, ARB Gaming, operating under the name Modo.us, along with Epic Hunts, have been cited for offering unauthorized gambling activities. These operators have been accused of providing illegal access to online casino-style games and sweepstakes platforms that fall outside of Arizona’s regulatory framework.

In the realm of event wagering sportsbooks, the operator Generiz has been flagged for its illegal operations targeting Arizona residents. Similarly, ProphetX, a peer-to-peer exchange platform, is also under scrutiny for violating the state’s gambling laws by facilitating unlicensed sports betting and wagering activities.

Additionally, two operators, MyBookie and BetUS.com.pa, which offer multiple types of gambling services, have been included in the enforcement action. These platforms are accused of unlawfully offering various gambling activities, including sports betting, casino games, and more, without the necessary state licenses and approvals.

These operators are alleged to be felony criminal enterprises, violating several Arizona gaming laws, including the Promotion of Gambling, Illegal Control of an Enterprise, and Money Laundering statutes. The ADG has directed them to cease all gambling operations within the state immediately.

The rise of unregulated gambling platforms:

While Arizona’s sports betting laws have been in place since 2021, allowing both online and retail sports betting, other forms of online gambling, such as casinos and iGaming, remain illegal in the state. Any online casino operating within Arizona is, therefore, unregulated and unauthorized.

The rise of sweepstakes casinos, which allow users to gamble with free or purchased coins in exchange for real money prizes, has been a particular focus for Arizona regulators. These sweepstakes platforms are increasingly popular, but they operate outside of the state’s legal framework. Other states, including Florida and Louisiana, have followed suit by introducing legislation to ban these operations.

Arizona has taken significant steps to warn residents about the risks of engaging with unlicensed gambling platforms. In a public service announcement issued earlier this year, the ADG highlighted the dangers associated with illegal casinos and sweepstakes gambling sites.

The ADG urges Arizona residents to be cautious when participating in gambling activities, whether online or in-person. Many platforms available to Arizonans are not licensed, meaning players are at risk of identity theft, fraud, and financial loss. The department has emphasized that just because a website or app can be accessed does not mean it is legal or secure.

To assist in ensuring a safe gambling environment, the ADG maintains an up-to-date list of authorized operators on its official website. Players are encouraged to verify the legitimacy of any platform before placing bets. A list of licensed casinos, sportsbooks, and other regulated gambling services is available on the ADG website for public access.

Arizona is not alone in its battle against illegal gambling operators. Other states are also ramping up their efforts to shut down unregulated platforms. In Michigan, for example, regulators have sent over 30 cease-and-desist orders in recent months, while states like Nevada and New Jersey are investigating sports prediction markets that circumvent state laws. The American Gaming Association has even called on the federal government to assist in curbing the illegal online gambling market, which continues to grow across the United States.

Arizona has urged its residents to report suspicious gambling activity, fraud, or identity theft if they encounter any illegal gambling websites or apps. Players are advised to document suspicious platforms and immediately cease any gambling activity on those sites. The ADG has made it clear that it cannot assist with complaints involving unregulated operations but remains committed to protecting players from illegal and unsafe platforms.