The Arizona Department of Gaming (ADG) has sent a new batch of cease and desist letters to four platforms it considers “unlicensed and unregulated gambling operators”: Fliff, Thrillzz, BettySweeps, and Pulsz.
A statement released by the ADG states:
“Each aforementioned operator has been directed to immediately cease all online (or other) gambling operations and activities in Arizona and take the necessary steps to immediately prevent and exclude Arizona residents and visitors from gambling on their websites.”
Which Laws is the ADG Citing in the Cease and Desists?
Fliff and Thrillzz are social sportsbooks, while BettySweeps and Pulsz are sweepstakes casinos. The ADG alleges all four operators are in contravention of AZ gaming laws, including:
- Promotion of Gambling (Felony) – A.R.S. § 13-3303
- Illegal Control of an Enterprise (Felony) – A.R.S. § 13-2312
- Money Laundering (Felony) – A.R.S. § 13-2317
The first law here outlaws any gaming which isn’t specifically regulated by the state, while the second and third laws frame the operators’ activities as organized crime and money laundering. Whether these allegations would be provable in court is another story, but it seems the ADG are intending to scare the operators into submission.
Arizona’s gambling framework looks typical at first glance – casinos and sports betting are legal, but online gambling is not. Where AZ differs is in how hard it is pushing against gray-market online models lately.
In April of this year, the ADG targeted a couple of other sweeps operators (Modo.us and Epic Hunts), and in February it tried to warn consumers off gaming with sweepstakes casinos.
We’ve also seen big operators like Stake.us pull out of the state, but for now, many sweepstakes brands remain, including McLuck, RealPrize, and WOW Vegas.
Sweepstakes Casinos and Sportsbooks Operate in a Gray Area in Arizona
AZ sweepstakes sites, including the four platforms targeted this month, operate in a gray area of state law across most of the US, arguing that their format lacks the ‘financial consideration’ needed to fall under the definition of gambling. This is because sweepstakes casinos and social sportsbooks use a dual-currency system rather than real money.
This concept is increasingly coming under the microscope, with states like Montana, Connecticut, and New Jersey passing anti-sweeps laws this year. Arizona hasn’t gone that far yet – like Louisiana, it seems to be challenging operators via its gaming regulator for now. However, as we’ve alluded to above, although Pulsz is one of the original sweeps sites, there are plenty of other big names that have escaped scrutiny in AZ for now.
If you are a registered user at Fliff, Thrillzz, BettySweeps, and Pulsz and resident of Arizona, look out for notifications or emails that could mean the operator is withdrawing from the state. For now it remains to be seen whether each brand will indeed withdraw.
As SweepsKings always advises in these situations, if you have any SC (or an equivalent currency) in your wallet on these platforms, we recommend submitting a redemption request as soon as possible to avoid disappointment.
Author: Joseph Allen
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