Arizona Dept. of Gaming Issues Cease-and-Desist Notices to Illegal Operators

• Arizona Department of Gaming issues seven cease-and-desist notices to illegally operating gaming companies
• ReBet, Novig both issued cease-and-desist notices
• Notices issues to companies offering slot-style games, sports betting sweepstakes, peer-to-peer betting exchanges, and more

Arizona gaming regulators recently issued several cease-and-desist notices to illegally operating gaming companies in the Grand Canyon State.

The Arizona Department of Gaming issued seven cease-and-desist notices to gaming companies engaged in “unauthorized gambling activities” in the state. The gaming companies were reportedly offering slot-style casino games, “sweepstakes” models, sports betting, horse race wagering, and peer-to-peer betting exchanges.

“Illegal gambling, regardless of the platform or format, has no place in Arizona,” Jackie Johnson, Director of the Arizona Department of Gaming, said in a press release.

Novig, ReBet Receive Notices

The following operators are unlicensed in Arizona and received cease-and-desist notices from the department of gaming:

• ReBet (event wagering sportsbook)
• Novig (peer-to-peer betting exchange)
• Dallas Sarai Club (raffles)
• Fanthem (raffles)
• Stake.us (sweepstakes)
• BettorEdge (multiple illegal offerings)
• High 5 (multiple illegal offerings)

Under Arizona gaming law, these companies are alleged to be felony criminal enterprises. Each of the operators has been ordered to immediately cease any and all future illegal gambling operations or activities in the state.

According to state law, the companies are alleged to be in violation of these laws, all of which are felonies:

• Promotion of Gambling
• Illegal Control of an Enterprise
• Money Laundering

“Whether it’s online casino-style games, sweepstakes models, or unauthorized sports betting, any operation that falls outside Arizona’s legal and regulatory framework will face enforcement action. Illegal gambling doesn’t just break the law; it robs our state’s economy and puts consumers at risk. The Department stands firmly with our licensed and regulated operators who are following the rules, contributing to Arizona’s economic health, and upholding the protections that a regulated market provides,” Johnson said.

Latest Round of C&Ds in Arizona

The latest round of cease-and-desist notices come a little more than a month after the Arizona Department of Gaming issued notices to Kalshi, Robinhood, and Crypto.com, ordering the brokers to cease offering sports event contracts to Arizonans.

Arizona was one of seven states – Illinois, Maryland, Montana, Nevada, New Jersey, and Ohio – to order the brokers to cease offering sports event contracts to its residents.

It remains to be seen if any of the companies take legal action against Arizona. Both Kalshi and Robinhood have levied lawsuits against Maryland, Nevada, and New Jersey gaming departments for attempting to restrict their sports event contracts. The lawsuits are based on the notion that state have no regulatory power over the markets, that only the CFTC can federally regulate the markets.