The Arizona Department of Gaming has issued a CPA - Consumer Protection Alert - letting the general public know that there is a nationwide development of illegal online casinos. These illegal casinos, otherwise known as imitation casinos, pretend to be connected to legal and licensed casinos in Arizona but are, in fact, fraudulent operations.

Sports betting regulators in Arizona are intensifying efforts to combat fraudulent online operators that falsely claim to be legitimate extensions of licensed casinos. The Arizona Department of Gaming has issued a Consumer Protection Alert warning residents about an alarming trend of scammers exploiting the state's gambling industry.

According to the ADG's statement, these fraudulent operators are masquerading as official online platforms connected to Arizona's regulated casinos. However, the only form of licensed online gambling in the state is sports betting, which was officially launched in 2021.

The ADG responds to consumer complaints

The Arizona Department of Gaming has received multiple complaints from Arizona residents about these illegal online casinos. Officials warn that such platforms pose a significant financial risk to consumers while also undermining the integrity of the state's regulated gambling market.

These fraudulent websites not only deceive players but also endanger their personal and financial security, said a spokesperson from the ADG. They exploit trust by mimicking real casinos, use deceptive promotions, and operate under misleading URLs.

Warning signs of fraudulent operators

The ADG has outlined key red flags to help consumers identify and avoid these illicit platforms:

Impersonating real Arizona casinos - Fraudulent sites copy the branding, logos, and names of licensed casinos to appear legitimate.

Too-good-to-be-true promotions - These platforms lure players with unrealistic bonuses and promotions designed to entice deposits.

Suspicious website addresses and apps - Scammers often use incorrect URLs, such as '.net' instead of '.com,' or include subtle misspellings to trick users.

Regulators are urging Arizonans to remain vigilant and report any suspected fraudulent gambling sites. Consumers can verify the legitimacy of an operator by checking the ADG's official website, which lists all licensed and regulated online gambling platforms in the state.

Arizona sports betting market not alone

Arizona is not the only jurisdiction dealing with the surge in online gambling scams. The ADG highlighted similar fraudulent activities across the country, with other states and even international markets seeing a rise in fake casino operations.

In Kansas, KWCH reported that an illegal operator had set up a fake website impersonating the Kansas Star Casino. The fraudulent links not only misled consumers but also exposed their devices to malware.

Meanwhile, entities of tribal gaming in Washington and Canadian casinos are also dealing with an uptick in scams.

The ADG's broader consumer protection efforts

The ADG has been proactively addressing concerns surrounding online gambling. Earlier on in the year, it released a public service announcement (PSA) on responsible online gambling, particularly focusing on the increase of online sweepstakes operators.

The agency also launched a dedicated 'Sweepstakes in Arizona' webpage, clarifying that only specific 'free-to-play' games are legal in the state. It warned that some sites disguise illegal gambling as sweepstakes, further misleading players.

Additionally, Arizona regulators have started cracking down on offshore operators such as Bovada, which operates outside US jurisdiction but still targets American bettors.

Potential legislative action

Since the ADG's warning, Arizona lawmakers have begun discussions on potential legislative measures to address the issue. Some legislators are exploring bills that would either ban sweepstakes operators outright or bring them under the umbrella of state-regulated online gambling laws.

For now, the ADG continues to stress the importance of public awareness and reporting. Residents are encouraged to report any suspicious gambling activities, fraud attempts, or potential identity theft incidents to the department.

With scammers becoming more sophisticated, Arizona regulators remain committed to protecting consumers and preserving the integrity of the state's sports betting industry. As the landscape of online gambling evolves, authorities warn that staying informed is the best defense against falling victim to fraudulent schemes.