State Guide · ArizonaArizona Online Gambling Guide
Sweepstakes casinos are effectively unavailable following ADG enforcement. Sports betting is fully legal. Prediction markets face the most aggressive state legal action in the country.
ADG issued C&D orders against Stake.us (Jun 2025) and others; major platforms have exited. No statutory ban passed as of June 2026.
Online sports betting is fully legal since Sep 2021. Online casino gaming is not authorised under state law. No iGaming bill is active.
Arizona filed the first-ever criminal charges against a CFTC-regulated prediction market (Kalshi) on Mar 17, 2026. CFTC counter-sued Arizona on Apr 9, 2026. Services suspended pending outcome.
Arizona operates a fully legal sportsbook market with 14 licensed operators under ADG oversight, but sits at the aggressive end of the regulatory spectrum on every other front. The ADG used existing felony-level gambling statutes to issue cease-and-desist orders that effectively drove the major sweepstakes platforms out of the state, without any new legislation passing. On prediction markets, Arizona went further than any other state: in March 2026, AG Kris Mayes filed criminal charges against KalshiEX, the first such prosecution against a CFTC-registered exchange in the country. The CFTC has now sued Arizona in federal court, and the case is active. For Arizona residents, the licensed sportsbook market is the only lawful option through state-regulated channels.
Arizona Gambling Law Breakdown
Arizona's approach to gambling starts from a position of total prohibition: all gambling is illegal unless a statute explicitly permits it. The relevant statutes are spread across Title 13 (criminal code) and Title 5 (gaming and amusements). The ADG publishes formal guidance on how sweepstakes operators can potentially comply — and has used that same framework to justify enforcement against those it determines do not.
Defines "gambling" as risking something of value for the opportunity to obtain a benefit from a game or contest of chance or skill, or a future contingent event. The definition does not require a monetary stake — any item of value risked can qualify. This broad definition is the foundation for the ADG's position that certain sweepstakes models constitute illegal gambling, and is central to Arizona's argument that prediction market contracts are unlawful wagers.
All gambling is illegal in Arizona unless a statute explicitly excludes it. Permitted forms include: event wagering (sports betting), the Arizona Lottery, charitable raffles by qualifying nonprofits, amusement gaming under A.R.S. § 13-3301.1, and tribal gaming under compacts. Sweepstakes casino operations are not explicitly listed as an exclusion — meaning the ADG's position is that they may only operate legally if they satisfy the "no consideration" requirements outlined in the ADG's own published sweepstakes guidance.
Makes it a class 5 felony to knowingly conduct, organise, manage, direct, supervise, or finance gambling — or to furnish advice or assistance for such activities — for a benefit. This is the primary statute the ADG cited in its cease-and-desist orders against Stake.us and other sweepstakes platforms in 2025. It is also one of the bases for the criminal charges Arizona filed against KalshiEX in March 2026. The platform-level (not player-level) nature of this offence is important: players are not targeted by this statute.
Signed into law April 2021, launching September 9, 2021. Authorises up to 20 online sports betting licences, split between tribal gaming operators and professional sports organisations. The ADG is the licensing authority. Operators must be 21+, conduct geolocation verification, and comply with responsible gambling requirements. Online casino gaming (iGaming) is not authorised under this statute or any other Arizona law, and no iGaming bill is currently active in the legislature.
The ADG publishes explicit guidance on the conditions under which "free-to-play" sweepstakes games may legally operate in Arizona. Key requirements include: participation must be free with no consideration required; free and paid participants must have identical odds; the free entry option must be clearly and conspicuously displayed; and terms must disclose odds, prize values, and contact details. The ADG notes that "sweepstakes" is not a defined term in Arizona law — operators must satisfy the general prohibition framework, not a dedicated sweepstakes carve-out.
Sweepstakes Casinos in Arizona
No profiled sweepstakes platform is currently available to Arizona residents. Stake.us received an ADG cease-and-desist order in June 2025 and exited Arizona in August 2025. Chumba Casino (VGW Group) lists Arizona as an excluded territory under T&C v23.3 §3.1b. The ADG has cited felony-level statutes in its enforcement campaign, and no legislative change has brought the sweepstakes model under a formal authorised framework.
Arizona Department of Gaming, the state's primary gambling regulator and enforcer of the sweepstakes C&D campaign.
Licensed Operators in Arizona
Online sports betting has been legal in Arizona since September 2021 under A.R.S. § 5-1301 et seq., regulated by the ADG. As of June 2026, 14 sportsbook apps are licensed and operational. Online casino gaming (iGaming) is not legal in Arizona — real-money casino games are restricted to tribal gaming properties. No Wager Layer-profiled operator currently holds an Arizona online sportsbook licence, as profiled operators are analysed for their casino products, which are not available in this state.
Casino Arizona is one of more than 20 tribal casino properties operating under state-tribal gaming compacts. Online casino gaming is not permitted under Arizona law.
Prediction Markets in Arizona
Arizona is the most aggressive state in the country against prediction markets. On March 17, 2026, AG Kris Mayes filed 20 criminal misdemeanor counts against KalshiEX LLC and Kalshi Trading LLC in Maricopa County Superior Court — the first criminal prosecution of a CFTC-registered prediction market operator in US history. The CFTC responded by suing Arizona in federal court on April 9, 2026, seeking a preliminary injunction and temporary restraining order against Arizona's enforcement. Kalshi has suspended services to Arizona residents pending the outcome.
Active Legislation & Enforcement Actions
Arizona has not passed sweepstakes-specific legislation, instead relying on existing criminal statutes for enforcement. The most significant developments are judicial and regulatory rather than legislative. The federal preemption battle between the CFTC and Arizona is the most consequential active proceeding in the state.
The CFTC filed suit against Arizona seeking a preliminary injunction and temporary restraining order to halt Arizona's criminal and civil enforcement against CFTC-regulated prediction market platforms. The CFTC's argument is that the Commodity Exchange Act grants exclusive federal authority over event contracts, preempting state gambling laws. CFTC Chairman Michael Selig described Arizona's use of criminal law as "weaponizing preempted state criminal law against companies that comply with a comprehensive federal regime." The outcome of this case will directly determine whether Kalshi can resume services in Arizona, and has implications for the broader federal preemption question being contested in nine states.
AG Kris Mayes filed a 20-count criminal information against KalshiEX LLC and Kalshi Trading LLC — the first criminal prosecution of a CFTC-registered prediction market operator in US history. Charges: 16 counts of illegal betting and wagering (accepting contracts on sports and other events), and 4 counts of election wagering, specifically for accepting contracts on the 2028 presidential race, the 2026 Arizona gubernatorial race, the 2026 AZ Republican gubernatorial primary, and the 2026 AZ Secretary of State race. All 20 counts are misdemeanours. Kalshi disputes the charges as outside Arizona's jurisdiction, asserting CFTC federal authority. The case directly raises whether a federally regulated exchange is required to obtain state gambling licensure.
The ADG issued three waves of C&D orders to sweepstakes operators across 2025. The April wave targeted Modo.us, ProphetX, and offshore sportsbooks. The June wave targeted Stake.us and High 5 Casino, citing promotion of gambling (A.R.S. § 13-3303, felony), illegal enterprise control (A.R.S. § 13-2312), and money laundering (A.R.S. § 13-2317). The August wave targeted Pulsz, BettySweeps, Fliff, and Thrillzz. No new sweepstakes-specific legislation accompanied these actions. Stake.us confirmed its Arizona exit on August 12, 2025. VGW Group (Chumba Casino) added Arizona to its excluded territories under T&C v23.3.
Player Guidance — Arizona
Arizona residents have access to one of the country's most developed licensed sportsbook markets, but are effectively shut out of sweepstakes casinos and prediction markets. The ADG has been one of the most active state gambling regulators in the country, and enforcement is ongoing. Players should be aware of the legal environment before using any online gaming platform.
Arizona's licensed sports betting market is well-developed, with 14 apps operating under ADG oversight. Verify your chosen sportsbook holds a current ADG licence at gaming.az.gov before depositing. These operators offer the full protections of state regulation, including responsible gambling tools and formal dispute channels.
Stake.us and Chumba Casino have exited Arizona — not just geoblocked. VPN use will not restore access to redemption features and violates platform terms of service, resulting in account suspension and forfeiture of any Sweeps Coin balance. The ADG's enforcement framework targets operators, not players, but the practical result is that platforms have removed Arizona service entirely.
Kalshi has suspended services to Arizona residents following the March 2026 criminal charges. Arizona's AG has made clear it views prediction market contracts as illegal wagers under A.R.S. § 13-3303. The CFTC's federal counter-suit is active but no injunction has been granted. Until the legal situation resolves, Arizona residents cannot lawfully access Kalshi. Monitor the circuit split article on Wager Layer for updates as the federal proceedings develop.
Arizona law contains a specific prohibition on election wagering that is separate from the general gambling statutes. This is one of the four charges included in the criminal information against KalshiEX. Even if federal preemption arguments succeed on the general gambling counts, the election wagering prohibition presents an independent legal challenge. Arizona residents should not attempt to trade political event contracts on any platform.
If you encounter a platform claiming to be legally available in Arizona that appears to be operating without ADG authorisation, report it to the ADG at gaming.az.gov/about/contact-us or by calling (602) 255-3886. Reports can be made anonymously. Consumer fraud related to identity theft can be reported to the Arizona AG at azag.gov/consumer.
Change Log
| Date | Version | Update |
|---|---|---|
| Jun 2026 | 1.0 | Page published. Legal status research completed June 2026. Sweepstakes: Restricted (ADG C&D campaign, Stake.us exit Aug 2025, Chumba excluded per T&C v23.3). Licensed: Sportsbook Only (A.R.S. § 5-1301). Prediction Markets: Not Available (AZ AG v. KalshiEX criminal charges Mar 17 2026; CFTC v. Arizona federal suit Apr 9 2026). |