Arizona Intensifies Online Gambling Battle, Threatens 5 Operators
The Arizona Department of Gaming is ramping up its war on allegedly “illegal” online gambling platforms.
The ADG issued five cease-and-desist orders over the weekend against brands it says are promoting illegal gambling and money laundering. Operators include sportsbooks and even recognized poker entities.
Arizona has been active this year in warning prediction markets over their conduct. However, the war on unregulated online gambling seems to have opened up a new theatre.
At a Glance:
- Arizona Department issues five cease-and-desist letters to online sportsbooks and social gaming sites
- Club WPT Online Poker is among the targets, though no prediction markets are hit
- Protecting Arizonans “our top priority”, says department director
- Social gambling sites not immune as Kutt Inc. finds itself on the wrong end
Future actions ‘could result in criminal charges’, letter warns
The Arizona Department of Gaming has cast its net wide in the latest raft of cease-and-desist letters. Online poker, sweepstakes casinos, and lottery sites are all named in the felony charges:
- Club WPT (online poker)
- Kutt Inc. (social casino)
- BetOpenly (online sports betting)
- Bookmaker (online sports betting)
- Raffle Creator (online lottery)
“Arizona is taking decisive action against illegal gambling operators that put Arizonans at risk,” said Jackie Johnson, director of the Arizona Department of Gaming. “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.”
The ADG statement also warns that criminal charges could come if alleged illegal sites continue.
“Future actions may include the filing of criminal charges or a civil action against entities, principals, and employees, and the operators may be subject to a potential award of restitution to those who lost money as well as an action for forfeiture of all monies acquired due to the illegal conduct,” the statement read.
Club WPT Online Poker the highest-profile site mentioned
Club WPT is one of the best-known names mentioned in the ADG’s letter.
The social poker site forms part of the World Poker Tour. It allows players to try Texas Hold’em for free online around the U.S. It’s particularly popular in states where real-money poker isn’t readily available.
However, the ADG alleges that Club WPT allows underage gamblers the chance to play poker — something that’s completely illegal in Arizona.
In particular, the ADG is challenging Club WPT’s “no purchase necessary” model. In reality, Club WPT operates a subscription model for VIPs, though not in all jurisdictions.
As with social sportsbooks, Club WPT allows players to rack up loyalty points and purchase chips through a VIP program.
Arizona’s battle with online gambling and prediction sites continues
Arizona has been fighting battles on multiple fronts this year, whether it’s sports betting or prediction markets.
The state attorney general, Kris Mayes, attempted to sue Kalshi this year for illegal sports betting. The Grand Canyon State was the first in the U.S. to try such a move.
However, a federal judge in Arizona struck down the move last week, arguing that only the CFTC (Commodity Futures Trading Commission) can regulate prediction platforms.
Striking back, the CFTC sued Arizona, along with Illinois and Connecticut, for trying to interfere in federally regulated businesses.
In its lawsuit, the CFTC argued that it would “continue to safeguard its exclusive regulatory authority over these markets [prediction sites].”
By going after social gaming platforms, Arizona may feel it has a better chance of success in the courts.
