Sweepstakes casino Stake.us have announced their departure from Arizona, in what is being viewed as a ‘pre-emptive move’. Unlike Montana, Connecticut and, as looks increasingly likely, California, the Grand Canyon State has not yet introduced laws prohibiting sweepstakes casinos, but the Arizona Dept. of Gaming (ADG) have made their anti-sweepstakes feelings clear.
At the beginning of the year, the ADG released a public service announcement warning Arizonans to “exercise caution when playing at illegal online casinos and sweepstakes platforms.”
The group issued guidance on what constitutes a legal sweepstakes casino, pointing specifically to the fact that free players must be able to participate in exactly the same manner as those who make purchases. This directly contravenes the dual-currency systems utilized by sites like Stake.us.
How do sweepstakes casinos work?
Traditional sweepstakes casinos offer free casino games to players. Players receive sweeps coins, for free, and can use these to wager on the games available. Winnings can then be converted into prizes.
However, operators have skirted on the edge of legality in recent years by selling sweepstakes coins for real money and limiting the availability of free coins.
The problem with sweepstakes casinos
The ADG, like politicians and campaigners across the country, points to the lack of player protection measures and the possible loss of funds and prevalence of scams as being the principal drivers behind anti-sweepstakes legislation.
In light of the ADG’s actions, and viewing a likely move to officially ban sweepstakes casinos, Stake.us have taken the first steps to withdraw from the state.
The site has already banned new registrations from devices in Arizona; and from August 12, the website will be completely blocked within the state.
In April, the ADG issued cease-and-desist letters to seven operators it said were targeting Arizona bettors without the appropriate licenses.
Stake.us was not included in the raft of legal letter recipients, but Jackie Johnson, Director of the Arizona Department of Gaming, said: “Illegal gaming – no matter the platform or format – has no place in Arizona. Whether it’s sweepstakes, online casino-style games, or unauthorized sports betting. If an operation exists outside of the state’s legal and regulatory framework, we are prepared to take enforcement action.”
Arizona joins a growing list of states in which Stake.us is no longer accessible. Players from Delaware, Connecticut, Michigan, New Jersey, Pennsylvania, Rhode Island and West Virginia – which all have regulated online gambling markets – are no longer able to play on the site. In total, this brings the number of states where the site is no longer accessible to 17.
Sweepstakes casinos have been finding life in the US more difficult. In May this year, Montana became the first state to enact a prohibition against sweepstakes casinos.
Washington and Michigan are among other states to have already implemented bans, while California seems likely to be next, as bill AB 831 makes its way through the legislature.
Stake.us isn’t the first sweepstakes casino to leave Arizona. High 5 Games announced a similar departure from the state at the beginning of this month – as more and more states look to implement a ban on this form of gaming.
