Investigations into five online platforms lead to cease-and-desist orders alleging Arizona felonies: Promotion of Gambling; Illegal Control of an Enterprise; and Money Laundering

The Arizona Department of Gaming (Department) announced today that it has issued cease-and-desist orders to the following entities: BetOpenly, Bookmaker, Club WPT Online Poker, Kutt Inc., and Raffle Creator. Each enforcement action alleges conduct giving rise to the following felonies: promotion of gambling, illegal control of an enterprise, and money laundering. The cease-and-desist orders underscore the Department’s commitment to guard the integrity and safety of Arizona’s regulated gaming market while promoting consumer protection.

“Arizona is taking decisive action against illegal gambling operators that put Arizonans at risk,” said Jackie Johnson, Department Director. “Our top priority is protecting Arizonans and I’m grateful for the efforts of our intelligence unit led by Chief Law Enforcement Officer Doug Jensen to do just that. Through these cease-and-desist orders we are putting operators on notice: their conduct runs contrary to Arizona law and they must stop promoting illegal gambling.”

The cease-and-desist orders outlined below follow Department public safety initiatives aligned with Arizona law, which prohibits gambling unless it is specifically authorized (Ariz. Rev. Stat. Tit. 13, Ch. 33) and where the legal age to participate in gambling is 21 years old.

Regarding BetOpenly, peer-to-peer gambling in Arizona prohibits any third-party from benefiting, and that the peer-to-peer sports betting and casino games on the BetOpenly platform benefited the operator via a commission structure. Further, the Department alleges that BetOpenly enabled event wagering and daily fantasy sports contests without the requisite state licenses, facilitated availability to underage Arizonans, and allegedly engaged in illegal felony conduct: promotion of gambling; illegal control of an enterprise; and money laundering.

View cease-and-desist letter here: gaming.az.gov/sites/default/files/BetOpenly_Signed%20Cease%20and%20Desist_Redacted.pdf

Regarding Bookmaker, the Department found through its investigation that the platform facilitates wagering on horse racing, casino games, and sports betting, without holding an event wagering license or an advanced deposit wagering provider license. Online casino games are not legal in Arizona. The Department alleges that Bookmaker engaged in illegal felony conduct: promotion of gambling; illegal control of an enterprise; and money laundering.

View cease-and-desist letter here: gaming.az.gov/sites/default/files/Bookmaker_Signed%20Cease%20and%20Desist_Redacted.pdf

Regarding Club WPT Online Poker, the Department alleges that the platform enabled Arizona individuals under the age of 21 to engage in pay-to-play online poker tournaments for prizes while using deceptive “no purchase necessary” language. Online poker is illegal in Arizona. The Department alleges that Club WPT Online Poker engaged in illegal felony conduct: promotion of gambling; illegal control of an enterprise; and money laundering.

View cease-and-desist letter here: gaming.az.gov/sites/default/files/ClubWPT%20Online%20Poker_Signed%20Cease%20and%20Desist_Redacted.pdf

Regarding Kutt Inc., the Department warned the operator that legal “social” gambling in Arizona prohibits any third-party benefit, as seen in Kutt Inc.’s operations. The Department directed the platform to stop allowing users located in Arizona to deposit money into accounts and wager on sports, politics, pop culture, and play casino-style games. The Department alleges Kutt Inc. engaged in illegal felony conduct: promotion of gambling; illegal control of an enterprise; and money laundering.

View cease-and-desist letter here: gaming.az.gov/sites/default/files/Kutt%20Signed%20C%26D_Redacted.pdf

Regarding Raffle Creator, the Department identified that the operator, which did not meet the requirements that allow Arizona nonprofits to conduct lawful raffles, allowed people under the age of 21 to purchase tickets for the chance to win prizes. The Department alleges that the operator engaged in illegal felony conduct: promotion of gambling; illegal control of an enterprise; and money laundering.

View cease-and-desist letter here: gaming.az.gov/sites/default/files/Raffle%20Creator_Signed%20Cease%20and%20Desist_Redacted.pdf

With the cease-and-desist orders, notified entities are directed to immediately stop all gambling operations and activities in Arizona, whether through mobile applications, online, or otherwise, and are further directed to desist from any future illegal gambling operations in the state. Future actions may include the filing of criminal charges or a civil action against entities, principals, and employees, and the operators may be subject to a potential award of restitution to those who lost money as well as an action for forfeiture of all monies acquired due to the illegal conduct.

Arizona residents are encouraged to Check Your Bet: verify that any gambling, event wagering, or fantasy sports platform appears on the Department’s list of approved operators before participating. Regulated gaming operators are subject to Arizona statutes and rules, including applicable taxes or financial contributions that benefit the state. Regulated gaming provides important consumer protections, ensuring fair play and fair winnings, data security, accountability, and a safer overall experience.

Consumers may contact the Department about potential illegal gambling activities by emailing [email protected] or by calling 602-255-3886; consumers may remain anonymous when submitting information and tips.