Many businesses look to hold sweepstakes, raffles, poker tournaments and other contests for marketing purposes. They don't realize that these activities can amount to illegal gambling.
'Gambling' generally means risking something of value for a chance to win a prize. With only limited exceptions, it is against the law for an Arizona business to benefit from gambling. Businesses that turn a blind eye can quickly find themselves faced with serious legal consequences.
Social gambling is permitted For now, what the Arizonans can do is social gambling. It is the form of gambling where bettors compete with each other on completely equal terms, without any sort of.
Sweepstakes Casino near napa ca.
- PHOENIX – The Arizona Department of Gaming led a multi-agency law enforcement partnership to serve a illegal gambling-related warrant on a Phoenix bar Wednesday, authorities said. ADG, along with the Arizona's Department of Liquor, Attorney General's Office, and the Phoenix Police Department conducted the search warrant on Toso's Sports.
- An alleged illegal gambling operation positioned in North Phoenix metro was closed down by the Arizona Department of Gaming. According to a press release of the Department of gaming, a couple of days earlier, police robbed as well as looked Toso's Sports Bar and Grill and Real Poker in Phoenix in an activity commissioned by the Arizona Department of Gaming.
Businesses of all sizes and types hold sweepstakes. They are so popular that entire websites exist to disseminate information on the hundreds of available contests. Done carefully, sweepstakes can be a legal means to promote a business.
Decades ago, sweepstakes were simply ill-disguised lotteries. Players would have to give some form of consideration, such as buying a product, in order to gain entry into the sweepstakes. This format caused the sweepstakes to fall within the broad definition of gambling, where the participant had to risk something of value for a chance to win a prize.
Eventually, federal regulators enacted sweepstakes regulations requiring a viable means to enter the contest without compelling a payment or a purchase of products or services. Regulations also now require a conspicuous disclosure indicating that a payment or purchase will not increase the chances of winning. Additionally, sweepstakes must be operated fairly with no misleading advertising related to them.
The material terms of the sweepstakes must be completely and clearly disclosed to potential players, and the contests ultimately conducted as announced. Although the material terms of the sweepstakes will vary depending on the contest, the following topics should be covered: (1) sponsoring business contact information; (2) the estimated odds of winning a prize; (3) an accurate description of prizes, including their value and costs or conditions to receive them; (4) how to enter and the deadline for doing so; (5) who is eligible to enter; and (6) when and how winners are selected, notified and can claim their prizes.
Businesses must pay close attention to risk when holding sweepstakes. Running afoul of the law usually happens when the business makes money directly from the sweepstakes. The purpose of a legitimate sweepstakes or other contest is to generate buzz, not squeeze money from participants.
Raffles
Raffles involve selling entries, usually in the form of tickets, to win prizes. They are a form of gambling and generally illegal in Arizona, except when operated by certain tax-exempt charitable organizations. Businesses may not hold raffles for profitable gain, so it's best to consider an alternative form of promotion such as a sweepstakes.
Illegal Gambling
Some for-profit businesses do support or sponsor charities. There is nothing wrong with a business gaining some exposure by helping to sell raffle tickets or providing a raffle prize, so long as the raffle is operated pursuant to Arizona law for charitable purposes.
Poker Tournaments
Poker involving betting and prizes falls within the definition of illegal gambling unless players are engaged in 'social gambling.' Social gambling is a term used to define gambling that is not conducted as a business. It involves players who are at least 21 years old who compete on equal terms with each other, and where no other person stands to gain, directly or indirectly, from the gambling. It is not unlawful to engage in social gambling in Arizona.
Businesses sometimes look to host poker tournaments for marketing purposes. For this to be legal, participation by a potential player cannot be contingent on any payment to the business no matter how small and no matter what it is called, including a cover charge, chair rental, ante or rake. Additionally, there cannot be even an indirect benefit to the business, such as profiting from refreshment sales or table rentals. Once there is any benefit to a non-player, the poker game will not qualify as legal social gambling and will put the hosting business at risk.
Note that there are no special rules in place for Internet poker. Beware of engaging or operating any poker site where there is any payment, betting or prize awarded. The site will most likely turn out to be illegal in Arizona.
Deliver on Promises
Promotions help build brand awareness and often result in more traffic, buyers and sales. Businesses just need to remember to determine if the activity is legal, follow the rules, pay close attention to risk and deliver the prize per their promise.
James Stipe is an AV-rated AV® Preeminent 5.0 out of 5 peer review-rated attorney in Martindale-Hubbell who joined Burch & Cracchiolo, P.A. in 1992. He practices in the areas of Commercial Litigation, Insurance Defense/Personal Injury Litigation and Indian Gaming Law. In the gaming arena, Stipe represents regulators in litigation and negotiations relating to Tribal/State Gaming compacts, and has counseled gaming vendors and tribal governments. He is the past Chair of the Indian Law Section of the State Bar of Arizona.
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Last Updated November 2, 2020
Tourists in Arizona can stand on a unique spot while visiting the state – a spot where the borders of four states collide, meaning you can literally be in all four states at once. When both of your feet are planted on Arizona land, however, you'll be in a place that takes a complex attitude toward gambling.
In this guide to AZ poker and gambling laws, we'll talk about legal issues, online poker sites in Arizona and provide some analysis of the future for all types of betting in the Grand Canyon State and whether or not you can play online poker in AZ.
Is Gambling Legal in Arizona?
| Type/Code | Summary |
|---|---|
| State Code Section(s) | 13.3301-3312; 5.101-131; 5.401-604 |
| Definition of Gambling | Gambling: One act of risking or giving something of value for the opportunity to obtain a benefit from a game or contest of chance or skill or a future contingent event but does not include bona fide business transactions. |
| Definition of Exception to Gambling Laws | Exception to gambling laws: Skill and not chance is clearly the predominant factor in the game and the odds of winning the game based upon chance cannot be altered, provided the game complies with any licensing or regulatory requirements by the jurisdiction in which it is operated, no benefit for a single win is given to the player or players other than a merchandise prize which has a wholesale fair market value of less than ten dollars or coupons which are redeemable only at the place of play and only for a merchandise prize which has a fair market value of less than ten dollars and, regardless of the number of wins, no aggregate of coupons may be redeemed for a merchandise prize with a wholesale fair market value of greater than five hundred fifty dollars. |
| Online Poker/Gambling | Arizona lawmakers have not considered online poker or gambling legislation, primarily due to the opposition of such internet games by the majority of tribes. |
| Live Poker | Live poker is permitted in Indian-run casinos, via cash games and tournaments. |
| Casinos | Full-fledged casinos are permitted on Indian reservations with slot machines and table games, including poker. |
| Sports Betting | There have been no attempts to legalize sports betting in Arizona. |
| DFS | There was a bill in 2016 to consider daily fantasy sports, but it did not pass and has not been introduced again since then. |
| Other Forms of Gambling | Lottery, bingo, amusement gambling, charitable casino nights, raffles, horse and harness racing, dog racing only if not on the same day as horse racing activities. |
Arizona and Online Poker
Arizona has become a bit of a poker hotbed over the last decade or two, and that interest in poker transitioned online as more and more sites began offering real money poker games in Arizona. That situation continues to this day, with thousands of players from Arizona signing up to play poker online.
AZ gambling law is almost exclusively focused on individuals or organizations that operate or promote illegal gambling. As a result, players face comparatively little risk when engaging in illegal gambling simply as a participant. With that said, Arizona law – like most gambling law – is quite vague and obviously subject to interpretation.
Let's highlight a few parts of Arizona code that could be relevant to online poker players:
What constitutes gambling in Arizona? From the state code: 'Gambling' or
'gamble' means one act of risking or giving something of value for the opportunity to obtain a benefit from a game or contest of chance or skill or a future contingent event' (Section 13-3301)
Illegal Gambling Phoenix Arizona
Players could have some exposure to the charge of
'benefiting from gambling' (class 1 misdemeanor): 'Except for amusement or regulated gambling, a person commits benefiting from gambling if he knowingly obtains any benefit from gambling' (Section 13-3304).
There's also the distant potential that some activity related to playing online poker could be considered 'promotion of gambling,' a felony charge. Section 13-3303 covers one who
'Furnishes advice or assistance for the conduct, organization, management, direction, supervision or financing of gambling'.
Arizona does not have a law that specifically outlaws playing poker online, but poker would seem to clearly fall under the definition of 'gambling' enshrined in Arizona law.
With legal issues, it is imperative that you educate yourself (you can review the Arizona code directly – just search for 'gambling' first. If you have any doubts or questions, or if you are planning on drawing substantial revenue from online gambling, your next step should be to contact a legal professional with a background in gambling or internet gaming. We are only trying to provide you with a starting point for your larger research regarding online gambling and the law in Arizona.
Is It Legal To Play Online Poker in Arizona?
Online poker players who reside in Arizona shouldn't encounter too many restrictions when it comes to choosing an online poker room. All of the major US-facing online poker rooms accept players from AZ, so getting to play poker online is simply a matter of choosing which room you think will best meet your needs. The story is different in other states – like Washington – but when it comes to Arizona and online poker, players should find relatively few bumps in the road.
Will Arizona Try to Regulate Online Poker?
Our research did not reveal any initiatives related to online poker regulation in Arizona. It's always possible that the state could come along as other states choose to regulate poker player online, but we do not expect Arizona to be a leader on the issue of regulating online poker. For the time being, players will have to be content with online poker sites that are not directly regulated by the state of Arizona.
Arizona Gambling Facts & Figures
Gambling was a part of Arizona history prior to statehood, but the casinos were shuttered in an effort to win entrance into the union. In the century that followed, Arizona swayed back and forth on the issue of gambling expansion, with some forms winning acceptance (such as charitable gambling and the lottery) and others meeting sustained resistance (such as commercial casinos). Tribal gambling exploded in Arizona during the 1990s, and ignited an extensive legal battle that spanned much of the next decade. The result: Arizona is now home to nearly two dozen casinos offering games that rival the menus of their Las Vegas counterparts.
/cdn.vox-cdn.com/uploads/chorus_asset/file/18427243/1168587.jpg "Vegas")
Some for-profit businesses do support or sponsor charities. There is nothing wrong with a business gaining some exposure by helping to sell raffle tickets or providing a raffle prize, so long as the raffle is operated pursuant to Arizona law for charitable purposes.
Poker Tournaments
Poker involving betting and prizes falls within the definition of illegal gambling unless players are engaged in 'social gambling.' Social gambling is a term used to define gambling that is not conducted as a business. It involves players who are at least 21 years old who compete on equal terms with each other, and where no other person stands to gain, directly or indirectly, from the gambling. It is not unlawful to engage in social gambling in Arizona.
Businesses sometimes look to host poker tournaments for marketing purposes. For this to be legal, participation by a potential player cannot be contingent on any payment to the business no matter how small and no matter what it is called, including a cover charge, chair rental, ante or rake. Additionally, there cannot be even an indirect benefit to the business, such as profiting from refreshment sales or table rentals. Once there is any benefit to a non-player, the poker game will not qualify as legal social gambling and will put the hosting business at risk.
Note that there are no special rules in place for Internet poker. Beware of engaging or operating any poker site where there is any payment, betting or prize awarded. The site will most likely turn out to be illegal in Arizona.
Deliver on Promises
Promotions help build brand awareness and often result in more traffic, buyers and sales. Businesses just need to remember to determine if the activity is legal, follow the rules, pay close attention to risk and deliver the prize per their promise.
James Stipe is an AV-rated AV® Preeminent 5.0 out of 5 peer review-rated attorney in Martindale-Hubbell who joined Burch & Cracchiolo, P.A. in 1992. He practices in the areas of Commercial Litigation, Insurance Defense/Personal Injury Litigation and Indian Gaming Law. In the gaming arena, Stipe represents regulators in litigation and negotiations relating to Tribal/State Gaming compacts, and has counseled gaming vendors and tribal governments. He is the past Chair of the Indian Law Section of the State Bar of Arizona.
Related posts:
By
Last Updated November 2, 2020
Tourists in Arizona can stand on a unique spot while visiting the state – a spot where the borders of four states collide, meaning you can literally be in all four states at once. When both of your feet are planted on Arizona land, however, you'll be in a place that takes a complex attitude toward gambling.
In this guide to AZ poker and gambling laws, we'll talk about legal issues, online poker sites in Arizona and provide some analysis of the future for all types of betting in the Grand Canyon State and whether or not you can play online poker in AZ.
Is Gambling Legal in Arizona?
| Type/Code | Summary |
|---|---|
| State Code Section(s) | 13.3301-3312; 5.101-131; 5.401-604 |
| Definition of Gambling | Gambling: One act of risking or giving something of value for the opportunity to obtain a benefit from a game or contest of chance or skill or a future contingent event but does not include bona fide business transactions. |
| Definition of Exception to Gambling Laws | Exception to gambling laws: Skill and not chance is clearly the predominant factor in the game and the odds of winning the game based upon chance cannot be altered, provided the game complies with any licensing or regulatory requirements by the jurisdiction in which it is operated, no benefit for a single win is given to the player or players other than a merchandise prize which has a wholesale fair market value of less than ten dollars or coupons which are redeemable only at the place of play and only for a merchandise prize which has a fair market value of less than ten dollars and, regardless of the number of wins, no aggregate of coupons may be redeemed for a merchandise prize with a wholesale fair market value of greater than five hundred fifty dollars. |
| Online Poker/Gambling | Arizona lawmakers have not considered online poker or gambling legislation, primarily due to the opposition of such internet games by the majority of tribes. |
| Live Poker | Live poker is permitted in Indian-run casinos, via cash games and tournaments. |
| Casinos | Full-fledged casinos are permitted on Indian reservations with slot machines and table games, including poker. |
| Sports Betting | There have been no attempts to legalize sports betting in Arizona. |
| DFS | There was a bill in 2016 to consider daily fantasy sports, but it did not pass and has not been introduced again since then. |
| Other Forms of Gambling | Lottery, bingo, amusement gambling, charitable casino nights, raffles, horse and harness racing, dog racing only if not on the same day as horse racing activities. |
Arizona and Online Poker
Arizona has become a bit of a poker hotbed over the last decade or two, and that interest in poker transitioned online as more and more sites began offering real money poker games in Arizona. That situation continues to this day, with thousands of players from Arizona signing up to play poker online.
AZ gambling law is almost exclusively focused on individuals or organizations that operate or promote illegal gambling. As a result, players face comparatively little risk when engaging in illegal gambling simply as a participant. With that said, Arizona law – like most gambling law – is quite vague and obviously subject to interpretation.
Let's highlight a few parts of Arizona code that could be relevant to online poker players:
What constitutes gambling in Arizona? From the state code: 'Gambling' or
'gamble' means one act of risking or giving something of value for the opportunity to obtain a benefit from a game or contest of chance or skill or a future contingent event' (Section 13-3301)
Illegal Gambling Phoenix Arizona
Players could have some exposure to the charge of
'benefiting from gambling' (class 1 misdemeanor): 'Except for amusement or regulated gambling, a person commits benefiting from gambling if he knowingly obtains any benefit from gambling' (Section 13-3304).
There's also the distant potential that some activity related to playing online poker could be considered 'promotion of gambling,' a felony charge. Section 13-3303 covers one who
'Furnishes advice or assistance for the conduct, organization, management, direction, supervision or financing of gambling'.
Arizona does not have a law that specifically outlaws playing poker online, but poker would seem to clearly fall under the definition of 'gambling' enshrined in Arizona law.
With legal issues, it is imperative that you educate yourself (you can review the Arizona code directly – just search for 'gambling' first. If you have any doubts or questions, or if you are planning on drawing substantial revenue from online gambling, your next step should be to contact a legal professional with a background in gambling or internet gaming. We are only trying to provide you with a starting point for your larger research regarding online gambling and the law in Arizona.
Is It Legal To Play Online Poker in Arizona?
Online poker players who reside in Arizona shouldn't encounter too many restrictions when it comes to choosing an online poker room. All of the major US-facing online poker rooms accept players from AZ, so getting to play poker online is simply a matter of choosing which room you think will best meet your needs. The story is different in other states – like Washington – but when it comes to Arizona and online poker, players should find relatively few bumps in the road.
Will Arizona Try to Regulate Online Poker?
Our research did not reveal any initiatives related to online poker regulation in Arizona. It's always possible that the state could come along as other states choose to regulate poker player online, but we do not expect Arizona to be a leader on the issue of regulating online poker. For the time being, players will have to be content with online poker sites that are not directly regulated by the state of Arizona.
Arizona Gambling Facts & Figures
Gambling was a part of Arizona history prior to statehood, but the casinos were shuttered in an effort to win entrance into the union. In the century that followed, Arizona swayed back and forth on the issue of gambling expansion, with some forms winning acceptance (such as charitable gambling and the lottery) and others meeting sustained resistance (such as commercial casinos). Tribal gambling exploded in Arizona during the 1990s, and ignited an extensive legal battle that spanned much of the next decade. The result: Arizona is now home to nearly two dozen casinos offering games that rival the menus of their Las Vegas counterparts.
Regulated Gambling Choices in Arizona
There are a litany of choices for gambling seeking regulated options in Arizona. The primary source of regulated gambling in the state are the 22 tribal casinos spread across Arizona, and you'll also find a state lottery, horse racing and charitable gambling within Arizona's borders.
All Poker and Gambling Laws by State
A casino company might soon hold naming rights to an NFL stadium. Gila River Gaming Enterprises, which owns four casinos in the Phoenix metropolitan area. Gila River Gaming might soon own the naming rights to the Arizona Cardinals' stadium, which originally was named Cardinals Stadium and currently is named University
Read FullPhil Mickelson, the 5-time major winner on the PGA Tour, agreed to pay back nearly $1 million in profits from an insider trading deal. Mickelson is seen by federal authorities as having profited from insider trading, though he is not accused of any wrongdoing himself. The place is a part
Read FullA man alleged to have shot and killed a retired California police officer in the parking lot of an Arizona casino has been captured. John Campus Sr. was arrested by Phoenix police after a week-long manhunt. Several witnesses claim they saw Campos shoot a man during a failed carjacking outside
Read FullThe Desert Diamond Resort and Casino opens on Sunday amid controversy. The Desert Diamond, which is owned and operated by the Tohono O'Odham tribe, is no stranger to controversy. The Tohono O'Odham tribe has been trying to build the casino since the early 2000s, a move which has been opposed
Read Full
The junior Senator from Arizona, Jon Kyl, has been working for some time on a bill to regulate online poker at the federal level. This bill is reportedly being developed by Kyl and Nevada Senator Harry Reid, who has been a long-time proponent of regulating online poker and online gambling.
Arizona Gambling Resources
Arizona Gaming Summary. Prepared by the UNLV Center for Gaming Research, this brief provides an excellent overview of the commercial gambling industry in the state of Arizona. Those interested in the facts and figures (and the economics) of gambling in Arizona will find a solid starting poker here.
Gambling Rules at ASU . Students at Arizona State University should review this document, which covers both state law and university policy regarding gambling. Remember, state law is only one part of the picture – your school, workplace and other environments may have additional rules and regulations regarding gambling.
Gila River Casinos The Gila River Indian Community operates some of the largest casinos in the state of Arizona, and is an excellent starting point for gamblers looking to plan a trip to the state. You can get more information about the tribe and the casinos they operate from this central resource.
Arizona and Poker
While not as rich in poker history as a Texas or California, Arizona plays an important role in the modern tale of the game. The Arizona State Poker Championship has become a marquee event on the US tournament circuit, and the prowess of Arizonian poker players was proven yet again in 2012 when ASU student Jake Balsiger took 3rd place in the World Series of Poker Main Event.
Helpful Gambling Resources and Links
