Arizona Takes Aim at Unlicensed Operators
The Arizona Department of Gaming (ADG) is stepping up its fight against illegal gambling. Last week, the agency issued cease-and-desist orders to six unlicensed gaming operators, including domestic and offshore sites, that were unlawfully targeting Arizona players.
The enforcement sweep covers everything from unregulated sweepstakes casinos to unauthorized sportsbooks and peer-to-peer wagering platforms.
“Illegal gaming, no matter the platform or format, has no place in Arizona,” said ADG Director Jackie Johnson. “Whether it’s sweepstakes, online casino-style games, or unauthorized sports betting, if an operation exists outside of the state’s legal and regulatory framework, we are prepared to take enforcement action.”
Who Got Hit – and Why It Matters
The six operators named in the ADG’s enforcement action include a wide range of gambling models, from offshore sportsbooks to sweepstakes-style platforms that are pretending to be “social gaming.
Here’s the list:
- ARB Gaming, LLC (operating as Modo.us and Modo) – A domestic sweepstakes and online casino brand that offers real-money style play without a license.
- Epic Hunts – A sweepstakes platform that blends contests with casino-style prize systems.
- Generiz – An unauthorized online sportsbook that offers event wagering without state approval.
- ProphetX – A peer-to-peer betting exchange that allows users to place wagers against each other, while operating outside Arizona’s legal framework.
- MyBookie – A well-known offshore sportsbook and casino, historically operating in U.S. markets despite regulatory bans.
- BetUS.com.pa – Another major offshore brand offering casino games and sports betting to American players without U.S. licensure.
The ADG accused all six companies of serious violations under Arizona law, including:
- Operating a criminal enterprise
- Promotion of illegal gambling
- Engagement in money laundering activities
Each operator was ordered to immediately cease operations targeting Arizona players, or face potential felony prosecution under state statutes.
A Broader Warning to Players
The crackdown follows a public service announcement (PSA) the ADG issued earlier this year warning bettors about the dangers of playing on unregulated platforms.
“Many of these operations are not legal or regulated, leaving users vulnerable to fraud, identity theft, and other serious risks,” the ADG said in its announcement.
Arizona’s gambling laws don’t offer a specific definition for sweepstakes casinos, but the ADG emphasized that online gaming operators must comply with strict standards — including fairness, transparency, and responsible gaming protections — to legally serve residents and visitors.
Why It Matters: Consumer Protection
This enforcement push didn’t come out of nowhere. Earlier this year, the Arizona Department of Gaming issued a public service announcement (PSA) warning residents about the hidden dangers of playing on unlicensed gambling sites.
“Many of these operations are not legal or regulated, leaving users vulnerable to fraud, identity theft, and other serious risks,” the ADG said in its statement.
Unlike Arizona’s licensed casinos and sportsbooks which are vetted for fairness, security, and consumer protections, offshore and unregulated platforms operate with virtually no oversight. And thanks to a loophole in Arizona’s gambling laws, it’s even harder to shut them down.
Arizona law doesn’t specifically define sweepstakes casinos, which creates a legal gray zone that is being exploited. Some operators hide behind the label of “social gaming,” while quietly offering real-money-style prizes.
Still, the ADG made its position clear: platforms operating outside the law won’t be given a free pass.
The cease-and-desist orders accuse the targeted companies of running unauthorized gambling businesses and participating in money laundering activities. These are serious felony allegations that could lead to even harsher consequences if ignored.
However, Arizona isn’t acting alone. States like Florida, Connecticut, New Jersey, Maryland, and Louisiana are all ramping up enforcement against gray-market gambling platforms, sending a strong national signal that the window for operating in the shadows is closing.
What’s Next for Players?
The ADG is urging anyone considering online gambling to double-check that a site is licensed and legal. Players can also report suspicious gaming activity by contacting the agency directly at [email protected] or by calling (602) 255-3886.
With enforcement actions heating up nationwide, expect the crackdown on unlicensed sweepstakes casinos and rogue sportsbooks to continue not just in Arizona, but across the country.