Another state is fighting back against sweepstakes casinos.
In a strong move, according to them, to protect citizens and uphold state laws, the Arizona Department of Gaming (ADG) is ramping up efforts against illegal gambling activities. This includes issuing cease-and-desist orders to several unregulated operators, with a major sweepstakes casino being a key target.
The ADG issued seven cease-and-desist orders to unregulated gambling sites. This includes a strong action against Stake.us, a known sweepstakes casino operator. This marks the second major wave of enforcement by the ADG against illegal gambling operations.
According to ADG Director Jackie Johnson, “Illegal gambling, regardless of the platform or format, has no place in Arizona.” The department has made it clear that any gambling activity outside the legal framework of Arizona will face strict enforcement actions.
Warnings Against Unregulated Casinos and Sweepstakes
With the rise in popularity of online sweepstakes and casinos, the ADG is urging Arizona residents to exercise caution. Despite their increasing popularity, these platforms often operate in a legal gray area, lacking proper regulation and oversight.
Many of these unlicensed platforms expose users to significant risks, including fraud, identity theft, and financial loss. The ADG encourages bettors to verify the legitimacy of any platform before engaging in any gaming activity to avoid potential pitfalls.
Operators Targeted in the Crackdown
The recent actions by ADG targeted a range of operators offering various illegal gambling services. These include online casinos, sweepstakes models, sports betting, and more. Notable operators who received cease-and-desist orders include:
- Event Wagering Sportsbook: ReBet
- Peer-to-Peer Exchange: Novig
- Raffles: Dallas Safari Club, Fanthem
- Sweepstakes: Stake.US
- Multiple Offerings: BettorEdge, High 5
These operators have been warned to stop their illegal gambling activities or face further legal consequences.
Consumer Protection Advisor
In light of these developments, the ADG is emphasizing the importance of regulated gaming for consumer protection. Licensed gambling platforms offer several key benefits, including fair play, data security, and accountability, which are often absent in unregulated sites.
As the rise in illegal online gaming continues, Arizona residents and visitors are advised to engage only with licensed and regulated platforms. This precaution helps ensure a safer experience and provides recourse in case of disputes or financial losses.
Arizona Crackdown Part of Bigger Push Against Sweepstakes Casinos
Several U.S. states have recently enacted or advanced legislation to crack down on sweepstakes casinos, with 2025 marking a significant escalation in enforcement and legal restrictions. The most notable states taking action include:
Connecticut: Passed a bill (SB1235) making it a Class D felony to operate or promote a sweepstakes casino, with penalties of up to $5,000 and five years in prison. The bill is awaiting the governor’s signature.
Louisiana: The legislature passed a bill (SB181) to ban sweepstakes casinos, which was sent to the governor. Although Governor Landry vetoed the bill, the Louisiana Gaming Control Board has issued 40 cease-and-desist orders against sweepstakes operators, signaling a tough regulatory stance.
Nevada: Passed SB256, which strengthens penalties against unlicensed gambling operations, including sweepstakes casinos. The bill awaits the governor’s approval.
Montana:Enacted a law banning sweepstakes gambling, effective October 1, 2025, with severe penalties (up to 10 years in prison and $50,000 in fines).
New York: Passed a bill banning online sweepstakes casinos, which awaits the governor’s signature. The Attorney General has also issued cease-and-desist orders to 26 sweepstakes operators.
Other states with recent enforcement actions or legislative efforts:
Mississippi: Issued cease-and-desist orders to sweepstakes operators and introduced a ban, though the bill stalled after amendments.
New Jersey: Introduced SB4282 to ban the sweepstakes model, with proposed fines of $250,000 for violations
- Maine:Put out a warning earlier this year.
California has also introduced a bill that would ban sweepstakes casinos, but it is still early in the legislative process.
