Arizona Orders Club WPT and Four Others to Stop Alleged Illegal Gambling
The regulator cited possible felony violations, underage play and unlicensed wagering as it moved against five operators.
Arizona’s gaming regulator ordered five operators to stop alleged illegal gambling activity in the state, including Club WPT Online Poker.
In a July 10 press release, the Arizona Department of Gaming said the cease-and-desist orders went to BetOpenly, Bookmaker, Club WPT Online Poker, Kutt Inc. and Raffle Creator. The department said the enforcement actions allege conduct that could give rise to felonies, including promotion of gambling, illegal control of an enterprise and money laundering.
The orders direct the companies to immediately stop all gambling operations and activities in Arizona, whether through mobile applications, online or otherwise, and to stop any future illegal gambling in the state. The release said Arizona’s legal age to participate in gambling is 21, and that gambling is prohibited unless it is specifically authorized by law.
BetOpenly was accused of running peer-to-peer gambling in a way that prohibited third parties from benefiting, while the department alleged the company still benefited through a commission structure. It also said BetOpenly enabled event wagering and daily fantasy sports contests without the required state licenses, and that the platform allegedly made itself available to underage Arizonans.
Bookmaker was accused of facilitating wagering on horse racing, casino games and sports betting without an event wagering license or an advanced deposit wagering provider license. The release also said online casino games are not legal in Arizona.
Club WPT Online Poker was accused of allowing people under 21 to take part in pay-to-play online poker tournaments for prizes. The department also said the site used deceptive “no purchase necessary” language, while noting that online poker is illegal in Arizona.
Kutt Inc. was alleged to have allowed people in Arizona to deposit money into accounts and wager on sports, politics, pop culture and casino-style games. Raffle Creator was accused of letting people under 21 buy tickets for a chance to win prizes, and the department said it did not meet the requirements that allow Arizona nonprofits to conduct lawful raffles.
ADG Director Jackie Johnson said Arizona was taking decisive action against illegal gambling operators that put Arizonans at risk. She said the department was using cease-and-desist orders to put operators on notice that their conduct runs contrary to Arizona law and that they must stop promoting illegal gambling. Johnson also said the department’s intelligence unit, led by Chief Law Enforcement Officer Doug Jensen, supported the action.
The release said future steps could include criminal charges or civil action against entities, principals and employees. It also said operators could face restitution for people who lost money and forfeiture of money acquired through the alleged illegal conduct.
The department encouraged residents to use its Check Your Bet tool before participating in a gambling, event wagering or fantasy sports platform, and said people can report suspected illegal gambling by email or phone, including anonymously. It also said regulated gaming operators are subject to Arizona statutes and rules, including taxes or financial contributions that benefit the state, along with consumer protections such as fair play, data security, accountability and a safer overall experience.
The move lands amid broader scrutiny of sweepstakes-style gaming. An American Gaming Association memo said some operators have built business models around dual virtual currencies, free tokens and casino-like play to try to avoid licensing and regulation, and warned that the lack of oversight can create consumer, integrity and economic risks.
