Arizona Regulator Issues Cease-and-Desist to Sweepstakes Operator
The Arizona Department of Gaming (ADG) has issued cease-and-desist (C&D) orders to Raffall, a UK-based sweepstakes casino provider, and its Arizona partner for operating the "Phoenix Dream Home Sweepstakes." The promotion, which offered a $1.3 million property as its prize, was determined to violate state gambling laws.
According to the ADG investigation, ticket sales drove prize distribution, a structure the regulator deemed an illegal gambling scheme under Arizona statutes. State law only allows raffles to be conducted by qualifying charitable or tax-exempt organizations, and explicitly prohibits personal profit.
Additionally, Raffall's sweepstakes were accessible to individuals under 21, another breach of Arizona gambling regulations.
ADG Director Jackie Johnson emphasized that labeling an operation as a sweepstakes, raffle, or giveaway does not make it legal. Johnson said such unregulated activity creates risks for consumers, who lack oversight, accountability, and safeguards. The regulator also criticized foreign-based platforms, such as Raffall, for not adhering to U.S. gambling laws.
The department noted that further felony charges could be pursued, including promotion of gambling, illegal control of an enterprise, and money laundering. The enforcement action follows a series of similar measures throughout 2025.
In June, the ADG delivered several C&D orders to unlicensed operators, including sweepstakes operators Stake.US and High 5. In August, four more platforms, including Fliff Online Gambling, Thrillzz Mobile Gambling, BettySweeps Casino, and Pulsz Casino, were ordered to halt operations in Arizona.
The regulator has continued to stress its zero-tolerance stance toward illegal gambling in the state.
Sweepstakes legal trouble in California
In addition to receiving a C&D letter from the ADG, High 5 Games has faced challenges in other states, including California, where a San Francisco judge denied the group’s motion to dismiss a lawsuit that would shut down its operations in the state.
The lawsuit was initially filed by plaintiff Thomas Portugal, who claimed that High 5 Game’s parent company, High 5 Entertainment, deceived him by allowing him to deposit and lose money on platforms that are illegal in California. The lawsuit draws on a 2015 ruling against land-based sweepstakes operations. It compares High 5’s operations to those of internet cafe sweepstakes, which the California Bureau of Gambling Control considers to be illegal gambling.
Judge Christine Van Aken noted her opinion in the filing, agreeing that Portugal had been “deceived” by High 5. She also rejected a claim from the operator that argued that the case should be dismissed as California has a policy not to allow judicial rulings in lawsuits involving gambling losses, adding, “This case is distinguishable because it seeks to enforce that public policy by prohibiting a gambling practice that Portugal alleges he was deceived into participating in.”
In addition to California, High 5 faces a lawsuit in New Jersey and has to pay $25 million in damages in Washington. The sweepstakes casino has also ceased operations in Idaho, Kentucky, Louisiana, Montana, Nevada, Washington, and New York.
