Arizona Department of Gaming Bans Five Operators for Illegal Gambling Activities
Arizona Department of Gaming Takes Action Against Unauthorized Gambling Operators
The Arizona Department of Gaming has issued cease-and-desist orders to five unlicensed gambling operators accused of conducting illegal activities, including underage gambling. The affected operators are BetOpenly, Bookmaker, Club WPT Online Poker, Kutt Inc., and Raffle Creator.
Enforcement and Compliance Requirements
The cease-and-desist orders require these entities to immediately stop all gambling-related operations within Arizona. This includes any activities conducted through websites, mobile applications, or other platforms. Additionally, these operators are banned from engaging in any future gambling operations that violate Arizona laws.
Non-compliance with these orders may lead to legal consequences, including criminal or civil proceedings against the companies, their owners, and employees. The Department has indicated that restitution may be sought for individuals who were harmed financially, and any profits gained from illegal gambling could be seized.
Leadership Comments on the Crackdown
Jackie Johnson, the director of the Arizona Department of Gaming, highlighted the state’s firm stance against unlawful gambling operators that jeopardize residents. Johnson emphasized that protecting the public is a top priority for the Department. She credited the department’s intelligence team, led by Chief Law Enforcement Officer Doug Jensen, for their role in identifying these violations. The orders also serve as a formal notice to these operators to cease all illegal activities immediately.
Details of Allegations Against Each Operator
BetOpenly allegedly offered sports betting and casino-style games without the appropriate state licenses and might have permitted users under 21 years old to participate. The platform reportedly earned revenue through commissions on wagering and daily fantasy contests.
Bookmaker is accused of unauthorized wagering on horse racing, casino games, and sports betting. The operator is also alleged to have promoted gambling unlawfully, engaged in illegal business control, and participated in money laundering.
Club WPT Online Poker supposedly allowed underage players from Arizona to join online poker tournaments, despite online poker being illegal in the state. The operator is believed to have committed similar illegal activities as other implicated platforms.
Kutt Inc. allegedly enabled Arizona residents to deposit money and place bets on sports and casino games, violating the state’s social gambling laws, which forbid third parties from profiting financially from such activities.
Raffle Creator is said to have failed to comply with legal requirements for raffles run by nonprofit groups in Arizona and permitted individuals below the age of 21 to buy raffle tickets for prize drawings.
Additional Legal Developments in Arizona Gambling
In a separate matter, a federal judge recently paused the state’s lawsuit against Kalshi, a prediction market platform accused of running illegal gambling operations. The judge ruled in favor of Kalshi’s argument that their activities should be regulated under the Commodity Futures Trading Commission, not state gambling laws.
