Deputy Editor
The Arizona Department of Gaming has sent cease-and-desist letters to the World Poker Tour, demanding that it stop serving customers in that state via both its ClubWPT and ClubWPT Gold products.
Industry observer Dustin Gouker broke the news on social media.
In addition to the WPT, the Arizona DoG sent letters to:
- BetOpenly
- Bookmaker
- Kutt Inc.
- Raffle Creator
Bookmaker is the most recognizable of those names, a popular online sportsbook licensed in an offshore jurisdiction and available worldwide.
“Arizona is taking decisive action against illegal gambling operators that put Arizonans at risk,” said Department Director Jackie Johnson in the release announcing the C&Ds. “Our top priority is protecting Arizonans and I’m grateful for the efforts of our intelligence unit led by Chief Law Enforcement Officer Doug Jensen to do just that. Through these cease-and-desist orders we are putting operators on notice: their conduct runs contrary to Arizona law and they must stop promoting illegal gambling.”
Keep Reading
Arizona Zeroes in on Both ClubWPT and ClubWPT Gold
The C&Ds cover both of the WPT’s sweepstakes products. That isn’t totally clear from the letter, addressed to “ClubWPT Online Poker.”
However, a closer look at the letter, dated July 8, indicates that Arizona has identified both products as violating state law. Support emails to both ClubWPT and ClubWPT Gold are present as addressees.
ClubWPT is the company’s legacy product. It lets customers pay a monthly fee to access poker tournaments. Some of them award seats into live WPT events.
ClubWPT Gold is WPT’s more modern sweepstakes-style platform. It started as a dual-currency product before switching to a model based on AI training. Customers there can still purchase Chips for real money and then trade them back in for real money. Compared to ClubWPT, that feels more like traditional real-money online poker, although some extra hoops are present that some customers must jump through.
Arizona labeled the WPT sites “a felony criminal enterprise.” The Arizona DoG is unhappy that both sites cater to players 18 and over, among other charges.
“The poker is not legal and the attempt to disguise your conduct as a ‘sweepstakes’ fails,” the Arizona DoG wrote. “‘Sweepstakes’ is not a defined term under Arizona law, there are no ‘sweepstakes’ laws or rules, and there is no exception from the illegal gambling statutes for conduct labeled ‘sweepstakes.'”
How Will ClubWPT Gold Respond to Arizona Ban?
Arizona has asserted its authority and charged the WPT with operating offending products in the state. The question is how the sites will respond.
Cease-and-desists have proven an effective deterrent for sweepstakes operators in many cases.
ClubWPT Gold has complied with state-level bans at times. Most recently, it vacated Tennessee after legislation targeting sweepstakes products appeared set to pass.
However, it has maintained that its business model allows it to remain compliant in California even after that state passed a sweepstakes ban last year. ClubWPT Gold still serves California residents.
Arizona ranks right in front of Tennessee in population, with the 14th-biggest in the country. The loss of these two states would be a big blow to the site’s liquidity.
ClubWPT Gold has yet to update its terms to include Arizona as an excluded territory. Customers there will be watching carefully to see what develops.
