The Arizona Department of Gaming (ADG) released a public service announcement in January, warning residents of the dangers of illegal sweepstakes platforms and online casinos.
Arizona Department of Gaming Warning Consumers Of Illegal Operators
In an educational .pdf file, the ADG states that “only certain games styled as ‘free-to-play’ are legal” in the Grand Canyon State. The Department did not warn consumers of sweepstakes casinos, only illegal and illegitimate operators.
“Due to their unregulated nature, ADG is unable to resolve complaints and disputes arising from unregulated and illegal gaming sites, leaving victims with little to no chance of recovering lost funds. In light of these developments, the Arizona Department of Gaming urges residents to verify the legitimacy of any online gaming platform before engaging in play.”
To clarify, Arizona residents should understand four key points:
- Retail casinos are legal.
- Online sports betting is legal.
- Traditional online casinos remain illegal.
- Sweepstakes casinos operate in a gray area.
Requirements For Sweepstakes Casinos In Arizona
According to Arizona law, free-to-play games or contests, sometimes referred to as sweepstakes, “seek to remove a participant’s act of risking or giving something of value for the opportunity to obtain a benefit from the game or contest.” To do this legally, the game or contest operator must:
- Allow free participation for all players.
- Provide customers with the same winning odds irrespective of spending.
- Not place any added requirements or limitations on free participation, such as extra forms, mailings, or limited entries.
- Not falsely represent that a player is the winner of a prize.
- Clearly provide and display the option to participate for free in the same manner, and with the same odds of winning, as an individual who chooses to pay.
- Do nothing to suggest that payment is required, make free participation limited, or more difficult.
- Clearly provide rules and terms and conditions for the games or contests.
- Clarify the estimated odds of winning.
- Indicate the schedule of any payments made over time.
- Comply with federal law including 39 U.S.C.A. § 3001, which is a law concerning sweepstakes in the U.S.
Legal sweepstakes casinos and online casinos in Arizona and across the US are aiming to boost their legitimacy in any way possible. Earlier this month, Virtual Gaming Worlds (VGW) Holdings raised its minimum player age requirement from 18 to 21 for its sweepstakes sites.
The policy change, which went into effect on Feb. 19, was implemented to advance responsible gaming measures amid mounting regulatory pressure in several U.S. states.