The Arizona Department of Gaming (ADG) sent cease-and-desist letters to a range of unlicensed gambling operators, including sweepstakes casinos and unlicensed sportsbooks.
“Illegal gaming—no matter the platform or format—has no place in Arizona,” said ADG Director Jackie Johnson. “Whether it’s sweepstakes, online casino-style games, or unauthorized sports betting, if an operation exists outside of the state’s legal and regulatory framework, we are prepared to take enforcement action.”
The ADG claims that the platforms are offering illegal gambling and potential money laundering.
The state also warned residents earlier this month about a surge in fake casinos posing as licensed operators.
A reminder was added when announcing the cease-and-desist letters, “As illegal online gaming activity continues to rise, the ADG urges all residents and visitors to be cautious when participating in gaming—whether online or in person.”
Unlicensed gambling operators named
The six companies told to get out of Arizona were:
- ARB Gaming, LLC – a company that run sweepstakes casino sites Modo, Bitmodo, and Modo.us
- Epic Hunts – a sweepstakes casino operator
- Generiz – an event wagering sportsbook
- ProphetX – a peer-to-peer exchange
- MyBookie – a Bitcoin sportsbook and casino
- BetUS.com.pa – an online sportsbook and casino
A press release from the ADG read, “The active operations of these companies and online websites in Arizona are alleged to be felony criminal enterprises, and each operator has been directed to desist from any future illegal gambling operations or activities of any type in Arizona.”
Illegal gambling stealing from economy
Arizona legalized sports betting in 2021 and generates substantial tax revenue from the industry. In 2024, online sports betting tax revenue was $112.4 million.
Protecting this revenue is one of the main aims of state regulators. Commenting on this, ADG Director Johnson stated, “Illegal gambling is not just unlawful—it’s stealing from our economy and undermining the safeguards that protect consumers.”
He went on to add, “The Department fully supports the licensed and regulated operators who are doing things the right way—operating within the bounds of the law, contributing to Arizona’s economy, and providing the protections that only a regulated market can ensure.”
At the moment, however, online casinos are not legal. This opens the market to unlicensed gambling platforms that offer these services to Arizona residents. Sweepstakes casinos have been booming in the US, and crypto casinos also offer casino games with the protection of decentralization.
There are currently no plans to legalize online casinos in the state. For now, casino players must go to the brick-and-mortar sites of the five tribal casinos, or find alternative platforms online.
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