Arizona regulator warns operators about prediction market offerings
The ADG said operators risk losing their licences.
US.- The Arizona Department of Gaming (ADG) has warned that operators that work with companies offering event contract trading and prediction markets outside of the state could lose their state licence.
In a letter sent to operators, ADG director Jackie Johnson said: “If the Department believes that an entity related to a licensee is partnered with a company that is selling event contracts in a jurisdiction outside Arizona in violation of the laws of that jurisdiction, that might impact a licensing decision.”
Dayne O’Brien, public information officer at the ADG, recently spoke to Focus Gaming News about the concerns over prediction market offerings. He said: “The gambling framework in AZ was voter-supported/enacted and addresses integrity monitoring issues to protect the wagering public and the integrity of sports, which is something that DCMs lack. These companies are enabling illegal gambling in Arizona, specifically, event wagering without proper licensure, in direct violation of Arizona Revised Statutes.”
When asked about the potential actions or penalties operators might face if they continue to offer prediction markets after the issuance of this warning, O’Brien said: “If an Arizona operator chooses to offer, enable, or sell event contracts to persons in Arizona through their own DCM or FCM (or those under common ownership or operated by a related entity) without a licence, or decides to associate, coordinate, or otherwise partner, directly or indirectly, with persons or entities offering or facilitating the offering, enabling, or sale of event contracts in Arizona without a licence, the Department will consider that conduct as it evaluates the continued suitability for that person or entity to maintain a licence. Additionally, the Department may deny, revoke, or suspend licences, and may also place conditions on a licence. This can include issuing fines to, or otherwise sanctioning, licensees.”
The ADG recently issued a warning about unlicensed online casinos and sports betting platforms. It said there had been a rise in complaints about unregulated gambling sites in recent months. Consumers had cited problems such as unclear terms, frozen accounts after withdrawal requests, and long delays or refusal of payouts, it said.
