February 28, 2025 Marija D
Arizona placed approximately $898 million in sports wagers during November 2024, marking a notable 26% increase compared to the same month in 2023, according to a recent report from the Arizona Department of Gaming (ADG). The state generated roughly $5.7 million in privilege fees from these bets.
In addition to reporting strong betting figures, the ADG has released a public service announcement (PSA) alerting residents and visitors about the risks of illegal online sweepstakes and casino platforms. The agency is urging consumers to the legitimacy of gaming operators before placing bets to avoid financial losses and fraudulent schemes.
As unregulated online sweepstakes and casino-style platforms continue to expand across multiple states, Arizona regulators have raised concerns about their legality. The ADG has identified several unauthorized operators targeting local players and emphasized the importance of responsible gaming practices.
“Many of these operations are not legal or regulated, leaving s vulnerable to fraud, identity theft, and other serious risks,” the ADG stated in its PSA, titled “Tips for Safe and Responsible Online Gaming.” The agency warned that because these platforms operate outside Arizona’s legal framework, consumers who suffer financial losses often have no recourse for recovering their funds.
The ADG’s announcement coincides with Identity Theft Awareness Week, reinforcing its broader efforts to combat financial fraud and protect consumers. The department highlighted instances where unregulated sweepstakes operators have been implicated in deceptive practices, including false tax claims and unauthorized charges.
Arizona law imposes strict guidelines on online sweepstakes and casino-style gaming. While some free-to-play games are permissible, they must comply with specific legal requirements. According to state regulations, a lawful sweepstakes contest cannot require participants to make purchases or provide any form of consideration. Furthermore, all players must be given equal access and odds, regardless of whether they make voluntary contributions.
Despite these restrictions, the ADG has observed an increase in unlicensed operators advertising online sweepstakes in ways that could mislead consumers into believing they are engaging in legal gaming.
This is not the first time Arizona regulators have warned about fraudulent gaming activities. Last year, the ADG issued a separate advisory regarding phone scams involving fraudulent gaming claims. Scammers, falsely claiming to represent the ADG, attempted to extract financial and personal information from unsuspecting individuals by promising sweepstakes prizes or winnings.
The ADG continues to urge players to remain cautious when engaging in online gaming, particularly when dealing with platforms that lack state licensing. Bettors are encouraged to utilize ADG’s official resources to confirm the legitimacy of gaming operators and report any suspicious activity to authorities.
Additionally, in November 2024, the National Council of Legislators from Gaming States introduced a draft of the Model Internet Gaming Act, a proposal aimed at establishing nationwide iGaming regulations. This legislation includes provisions for iGaming taxation, responsible gambling measures, and a proposed ban on sweepstakes casinos.
Source:
‘’Arizona Department of Gaming Releases November Sports Betting Figures’’, gaming.az.gov, February 26, 2025.