The Arizona Department of Gaming has sent cease and desist letters to multiple “unlicensed and unregulated gambling operators”, including two sweepstakes companies: Modo.us and Epic Hunts.
In a press release, the ADG said:
“These operations are not licensed by the State and fail to meet Arizona’s strict regulatory requirements, thereby posing significant consumer protection and financial risks to Arizonans.”
Why Modo.us?
Modo.us is one of the smaller casinos in a thriving sweepstakes industry, so its inclusion in Arizona’s enforcement efforts raises questions.
For example, we recently reported that VGW (operator of Chumba, LuckyLand Slots, and Global Poker) was targeted by the Delaware Division of Gaming Enforcement. It was a similar story in March too, when VGW was served another cease and desist, this time by the Maryland state regulator.
VGW, as a market leader, is an obvious target for regulators, but Modo.us is relatively small. So why single them out? Epic Hunts, meanwhile, is a largely unknown entity in the sweepstakes space. Is this a sign that the Arizona Department of Gaming isn’t fully up to speed with the current sweepstakes landscape, or have Modo.us and Epic Hunts done something to draw attention? It’s honestly hard to tell.
Arizona Regulator Steps Up Its Game?
On top of this, Arizona has not typically taken a hard stance against sweepstakes casinos. In fact, it’s very rare to see a sweepstakes site not operating in the Grand Canyon state. States such as Washington, Idaho, and Michigan have long been opposed to the format (as well as to online gambling in general), but Arizona has been a place where residents traditionally enjoy a great degree of choice in the sweepstakes space.
Having issued a warning over online casino scams in February, perhaps the state regulator is now looking to tighten up enforcement. Its recent press release claimed:
“The active operations of these companies and online websites in Arizona are alleged to be felony criminal enterprises, and each operator has been directed to desist from any future illegal gambling operations or activities of any type in Arizona.”
Whether Modo.us decides to comply with the letter remains to be seen. Its parent company, ARB Gaming LLC is based in Delaware, and cease and desist letters can lack legal teeth, especially if the operator has no physical presence in the state. In the case of VGW and Delaware mentioned above, VGW took over two years to eventually comply, initially claiming it had no knowledge of the letter the regulator had sent.
Louisiana State Lawmakers Seek to Give Their Regulator More Power
Earlier this month, we saw SB181 filed in Louisiana, an anti-sweepstakes bill that doesn’t just attempt to define sweepstakes casinos as illegal, but looks to give the Louisiana Gaming Control Board powers to bring civil enforcement actions against operators it deems illegal. This would be an interesting new law if passed, giving the LGCB a clear and strong course of action to pursue beyond cease and desist letters. For now, SB181 is still being debated in the Louisiana Senate, and Arizona has no sign of such a bill just yet.
Author: Joseph Allen
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