ADG takes ‘decisive action’ against operators linked to underage gambling, illegal activity

The Arizona Department of Gaming (ADG) has issued five cease-and-desist orders to various operators which either failed to prohibit underage residents from playing on their sites or engaged in illegal gambling activities. 

“Arizona is taking decisive action against illegal gambling operators that put Arizonans at risk,” ADG Director Jackie Johnson said. 

“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 Arizona regulator issued cease-and-desist orders to BetOpenly, Bookmaker, Club WPT Online Poker, Kutt and Raffle Creator, directing each to “immediately stop” all ongoing and future gambling operations.

Each enforcement action alleges the operators engaged in felonies such as the unauthorized promotion of gambling, illegal control of an enterprise and money laundering. 

The operators may also be subject to a potential award of restitution for those who lost money on the respective platforms, as well as have to forfeit all funds acquired due to the illegal conduct. 

Any further action from the operators could result in the filing of criminal charges or a civil action by the ADG. 

On July 9, Arizona Governor Katie Hobbs issued a new executive order prohibiting all executive branch employees from using nonpublic information to either personally or assist others in profiting off prediction markets, as well as avoid losses on event contract trading.

It remains to be seen if Hobbs chose to sign the executive order as a means of preparing for additional prediction market activity in the state, especially following North Carolina’s decision to recognize the CFTC’s “exclusive” authority over event contract trading.