Arizona Regulator Orders Five Operators to Cease Unlicensed Gambling Activity

The Arizona Department of Gaming (ADG) has issued cease-and-desist orders to five online gambling operators, alleging they engaged in illegal gambling and exposed consumers to risk. The targeted entities are BetOpenly, Bookmaker, Club WPT Online Poker, Kutt Inc., and Raffle Creator. The ADG stated that the enforcement actions involve allegations of felony-level violations, including promoting illegal gambling, illegal control of an enterprise, and money laundering.

Enforcement Actions and Allegations

According to the ADG, BetOpenly allegedly offered peer-to-peer sports betting and casino games that financially benefited the operator through a commission structure, while also providing event wagering and daily fantasy sports contests without the required state licenses. Regulators further alleged that the platform may have allowed access to individuals under the age of 21.

Bookmaker was accused of facilitating wagers on horse racing, sports betting, and casino-style games without holding an event wagering license or an advanced deposit wagering provider license. The ADG noted that online casino gaming remains illegal in Arizona.

Club WPT Online Poker allegedly allowed Arizona residents under 21 to participate in pay-to-play online poker tournaments for prizes. The department described the platform's use of “no purchase necessary” language as misleading, and emphasized that online poker is not legal in the state.

Kutt Inc. was ordered to stop allowing Arizona users to deposit funds and place bets on sports, politics, pop culture, and casino-style games. Regulators argued that the platform did not qualify under Arizona’s social gambling exemption because a third party allegedly profited from the activity.

Raffle Creator was accused of failing to comply with requirements for lawful nonprofit raffles and of permitting individuals under 21 to purchase tickets for prize drawings.

Regulatory Warnings and Context

“Arizona is taking decisive action against illegal gambling operators that put Arizonans at risk,” said ADG Director Jackie Johnson. She added that the cease-and-desist orders put operators on notice that their conduct violates state law and must stop. The department warned that further legal action could include criminal charges, civil proceedings, restitution for affected consumers, and forfeiture of funds obtained through alleged illegal conduct.

The ADG also urged residents to use its “Check Your Bet” campaign to verify that any sportsbook or fantasy sports platform appears on the state’s approved operator list.

The enforcement action comes as Arizona prepares to expand its regulated market. The ADG announced it will open a two-week application window on August 13 for up to 10 limited event wagering operator licenses, targeted at retail sportsbooks partnering with racetracks or off-track facilities. Since 2025, the ADG has issued cease-and-desist orders to more than 15 operators for similar violations.