The Arizona gambling regulator has issued Stake.us with a cease-and-desist letter to prohibit the company from offering its gambling services in the state. The Arizona Department of Gaming also sent cease-and-desist letters to six other operators for several types of gambling, including event wagering, sweepstakes, and peer-to-peer exchanges.
Key Takeaways
- The Arizona Department of Gaming has issued cease-and-desist letters to seven online gambling operators
- Among those brands are prominent operators Stake.us and High 5
- Operators have been prohibited from operating in AZ for offering sweepstakes casinos, online sportsbooks, peer-to-peer exchanges, and other gambling services
Stake.us received its letter for offering its online sweepstakes casino in Arizona. Online casino gambling is not legal in Arizona. While Arizona online sports betting is legal, only sites licensed by the Arizona Department of Gaming can offer these services. That’s why ReBet, Novig, BettorEdge, and High 5 received cease-and-desist notices.
Two other operators received cease-and-desist orders for providing raffle games.
“Illegal gambling, regardless of the platform or format, has no place in Arizona. Whether it’s online casino-style games, sweepstakes models, or unauthorized sports betting, any operation that falls outside Arizona’s legal and regulatory framework will face enforcement action. Illegal gambling doesn’t just break the law; it robs our state’s economy and puts consumers at risk. The Department stands firmly with our licensed and regulated operators who are following the rules, contributing to Arizona’s economic health, and upholding the protections that a regulated market provides,” said Director of the Arizona Department of Gaming, Jackie Johnson.
Arizona continues illegal gambling crackdown
This is the first batch of cease-and-desist letters the Arizona Department of Gaming has sent in 2025. The regulator issued orders in April to ARB Gaming LLC d/b/a Modo.us, Epic Hunts, Generiz, ProphetX, My Bookie, and BetUS.com.pa.
In January, the regulator warned the general public about offshore and sweepstakes casinos, reminding players that these sites operate illegally in the state.
Stake faces more legal uncertainty in the U.S.
This isn’t the first legal issue Stake.us has faced in the U.S. in 2025. The Michigan Gaming Control Board sent the company a cease-and-desist letter to kick off the year in January 2025. It has seen its eligible markets shrink as other states have enforced restrictions on sweepstakes casinos. New York passed legislation recently to ban sweepstakes casinos from the state, which will include Stake.us.
Stake.us is also involved in a lawsuit in Alabama. The plaintiff claims the company misled its customers by offering unlicensed games and not listing Alabama as one of its restricted states.
The brand has risen to prominence through its connection with the real-money online casino Stake, which has attracted attention through partnerships with prominent celebrities and sports teams like Everton FC and Drake. However, even the real-money platform has faced legal issues, with the U.K. gambling regulator, the U.K. Gambling Commission, removing the site’s license for advertising with controversial adult actress Bonnie Blue.
