The Arizona Department of Gaming has announced that it issued cease-and-desist orders to five unlicensed operators accused of facilitating underage gambling and other illegal gambling activities. These are BetOpenly, Bookmaker, Club WPT Online Poker, Kutt Inc., and Raffle Creator.
Arizona Cracks Down on Illegal Gambling Operators
Under the cease-and-desist orders, the operators are required to immediately halt all gambling activities in Arizona, including those conducted through mobile apps, online platforms, or any other means. They are also prohibited from engaging in any future illegal gambling operations within the state.
According to the Department, failure to comply could result in criminal or civil enforcement actions against the companies, their principals, and employees. The operators may also be ordered to pay restitution to individuals who lost money and could face the forfeiture of funds obtained through the alleged illegal activities.
Arizona Department of Gaming director Jackie Johnson stated that the state is taking decisive action against illegal gambling operators that place Arizonans at risk. Johnson emphasized that protecting residents remains the department’s top priority. She credited the efforts of the department’s intelligence unit, led by Chief Law Enforcement Officer Doug Jensen, for supporting those efforts. Johnson added that the cease-and-desist orders serve as a warning to operators that their activities violate Arizona law and that they must stop promoting illegal gambling.
What Is Each Operator Accused Of?
Starting with BetOpenly, the Department stated that the platform provided sports betting and casino-style games that generated financial benefits for the operator through commissions. Officials also alleged that the platform offered wagering and daily fantasy contests without the required state licenses and may have allowed individuals under the age of 21 to access its services.
Meanwhile, Bookmaker was alleged to offer wagering on horse racing, casino games, and sports betting, without holding an event wagering license or an advanced deposit wagering provider license. According to the Department, Bookmaker engaged in promotion of gambling, illegal control of an enterprise, and money laundering.
Meanwhile, regarding Club WPT Online Poker, the operator allegedly enabled underage Arizonians to play in online poker tournaments. Online poker is illegal in Arizona, and the Department alleges the operator engaged in the same felonies as the operator above.
Regarding Kutt Inc. The department stated that the platform allowed Arizona users to deposit funds and place bets on sports and other events while also offering casino-style games. Officials said the activity did not comply with Arizona’s social gambling regulations, which prohibit third parties from financially benefiting from such operations.
Last, but not least, the Department stated that Raffle Creator failed to meet the requirements for legal raffles conducted by Arizona nonprofit organizations. Officials also alleged that the platform allowed individuals under the age of 21 to purchase tickets for prize drawings.
In other news from Arizona, a federal judge halted the case against Kalshi, which the state filed earlier this year, claiming the prediction markets platform is conducting illegal gambling. The judge’s decision reinforced Kalshi’s case that its operations should be regulated by the Commodity Futures Trading Commission.