Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioArizona Department of Gaming (ADG) has issued cease-and-desist orders to UK-based platform Raffall and an unnamed Arizona resident over the “Phoenix Dream Home Sweepstakes,” which advertised chances to win a $1.3 million mountainside home via paid entries.
Paid Entry Home Giveaway Deemed Illegal Gambling
According to ADG’s investigation, the sweepstakes required participants to purchase entries and promised either a home transfer or a cash payout depending on ticket sales volume. The investigation also determined that the organizers intended to profit from ticket sales. That constitutes an illegal gambling operation under state law.
The agency ordered Raffall to remove all “gambling-related drawings or giveaways” targeting Arizonans. It also ordered the unnamed Arizona resident to cease promoting or conducting illegal gambling activities.
“Illegal gambling can take many forms, and it does not matter if it is labeled a sweepstakes, raffle, giveaway, or drawing,” said Jackie Johnson, ADG’s director.
“Unregulated operations put Arizonans at risk because there is no oversight, and therefore no accountability or safeguards in place. The Department will continue to take enforcement action to protect consumers, and we urge the public to learn what is legal before participating in or hosting any gambling activity.”
Under Arizona law, only charitable and tax-exempt organizations are permitted to conduct raffles, with any personal profit prohibited. ADG noted that the home sweepstakes was accessible to users under 21. It was also not run by a nonprofit organization, violating state gambling age restrictions.
Potential felony violations cited include Promotion of Gambling (A.R.S. § 13-3303), Illegal Control of an Enterprise (A.R.S. § 13-2312), and Money Laundering (A.R.S. § 13-2317).
Consumer Warnings Issued
The agency urged anyone who purchased entries in the Dream Home sweepstakes to stop participating immediately, contact their bank or credit card company to dispute the charges, and monitor their accounts for unauthorized transactions. If they suspect identity theft, they should contact the Federal Trade Commission (FTC) for assistance.
ADG also encourages consumers to report suspicious gaming activity at [email protected] or to the Arizona Attorney General’s Office.
“Regulated gaming provides important consumer protections, ensuring fair play and fair drawings, data security, accountability, and a safer overall experience,” ADG said in its release. “Foreign-based platforms, such as Raffall, do not adhere to Arizona or U.S. gambling laws, leaving consumers without essential protections.”
ADG added that it cannot assist with refund requests or individual disputes against unlicensed platforms.
Part of a Broader Crackdown, Including Sweepstakes Casinos
The Dream Home enforcement comes as Arizona steps up its efforts against unlicensed gambling platforms. In the past, it primarily targeted illegal offshore casinos. However, in recent months, it has turned its attention to sweepstakes casinos.
Like the Dream Home promotion, many of these platforms utilize the “sweepstakes model” — a federal promotional framework designed initially for no-purchase-necessary prize contests — to circumvent state gambling laws.
They typically sell virtual currency while offering “free” alternative entries. They argue that this is not gambling, despite prizes often being redeemable for real money. ADG has rejected that argument, treating these models as illegal gambling when profit and chance are involved.
In April, ADG issued cease-and-desist orders against six unlicensed gambling platforms, including sweepstakes casino Modo. The agency outlined that the operators do not meet “strict regulatory requirements.” That means they pose “significant consumer protection and financial risks to Arizonans.”
In July, it sent another wave of orders to operators such as Stake.us and High 5 Casino. In August, ADG issued cease-and-desist orders to Fliff, Pulse, Thrillz, and BettySweeps Casino. As a result, all these platforms have now stopped accepting players from Arizona.
Enforcement actions by regulators, such as ADG, have proven successful in forcing sweepstakes casinos out. In states like Louisiana, Delaware, and West Virginia, cease-and-desist letters have resulted in the exits of over 40, 30, and 20 operators, respectively.
Enforcement Wave Likely to Continue
The Dream Home sweepstakes takedown underscores Arizona’s increasingly aggressive posture toward unlicensed gambling, including sweepstakes.
Regulators have combined waves of enforcement actions with public education efforts. That includes the “Check Your Bet” campaign and public service announcements about the dangers of using unlicensed platforms.
With multiple states following suit, industry observers expect more sweepstakes casinos to withdraw from US markets or face regulatory action as enforcement pressure intensifies.
