Arizona Sends Out Another Round of C&Ds to Illegal Operators

The Copper State has taken another swing at pushing out sweepstakes operators this week.

The Arizona Department of Gaming (DOG) has issued four cease & desist letters to four operators it deemed as offering illegal forms of gambling. Thrillz, Fliff, Betty Sweeps, and Pulsz are the sweepstakes platforms that were targeted. All four will now need to choose if they’ll fight the order and risk severe legal action, or simply comply and exit the Arizona market.

Arizona has seen several rounds of crackdowns on illegal operators, but most targeted offshore sportsbooks. These platforms compete directly with the state’s regulated sports betting market, but that isn’t the case for sweepstakes operators.

Sweepstakes casinos and sportsbooks offer a way for customers to wager on a game without using real money. Customers instead purchase coin packs to place wagers for a chance to win prizes. This had been seen as a safer alternative to real-money gambling, but Arizona’s DOG apparently disagrees.

Earlier this year, Arizona’s gambling regulator sent out rounds of cease-and-desist letters to offshore sportsbooks, peer-to-peer betting sites, and prediction market operator Kalshi.

States Continue to Reject Sweeps Platforms

With the DOG’s latest round of cease-and-desist letters, Arizona joins a growing list of states attempting to ban sweeps platforms. That includes neighboring California, which is fighting to push out these operators along with the daily fantasy sports industry.

There are two reasons behind the growing opposition to the sweepstakes industry. The first involves the dangers of problem gambling. While customers aren’t using real money to place bets, the opportunity to win prizes is compelling vulnerable populations to continue making purchases.

The other reason states are pushing these operators out is an effort to protect their real-money markets. With large prizes, which can include cash, being offered, some real-money bettors are deciding to save their money and make the switch. Without any regulations to ensure fair play and the heavy-handed taxes of the gambling industry, sweepstakes operators can offer better odds and cheaper ways to play.