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

The Arizona Department of Gaming isn’t giving up its fight against illegal gambling operators.

The Copper State’s top gambling regulator sent out five new cease-and-desist letters this week. Bet Openly, Bookmakers, Club WPT Online Poker, Kutt Inc., and Raffle Creator all received orders alleging they violated the state’s gambling laws. 

The goal is to better protect the Arizona online sports betting market amid its battle with an emerging prediction-market industry.

“Arizona is taking decisive action against illegal gambling operators that put Arizonans at risk,” ADG Director Jackie Johnson shared in a press release. “Our top priority is protecting Arizonans, and I’m grateful for the efforts of our intelligence unit led by Chief Law Enforcement Officer Doug Jensen to do just that. Through these cease-and-desist orders, we are putting operators on notice: their conduct runs contrary to Arizona law, and they must stop promoting illegal gambling.”

In the letters, the regulator alerts each operator that it has taken notice of violations of Arizona’s gambling laws. It instructs them to immediately cease taking and stop accepting bets from the state until they can comply.

Arizona has sent out a few rounds of letters over the years, including to major offshore operators like Bovada, BetUS, and Novig. 

Raffles Come Under Fresh Scrutiny

Several regulators have set sweeps and offshore platforms in their sights, but the inclusion of Raffle Creator is intriguing.

The platform allows users over the age of 18 to create their own charity and non-profit raffles. It does tell users that they must ensure they are legally permitted to run a charity raffle in their state. This was an attempt to push responsibility to the user while keeping the platform live in as many markets as possible. 

According to the ADG’s letter, the operator is ultimately responsible for ensuring that all raffles are legally created. It also claimed to have found instances in which residents aged 18-20 were able to create raffles, despite the state setting the minimum age at 21.

Arizona’s action against Raffle Creator could bring fresh scrutiny to an industry that has remained largely outside the focus of gambling regulators. That could be trouble for many, as a significant investment will be required to ensure that all raffles comply with local laws.