The gambling regulator in Arizona, US, has issued cease-and-desist letters to a resident and a UK-based raffle hosting service for their roles in promoting a house giveaway in the state.
The Arizona Department of Gaming said that, after investigating the use of Raffall to promote the Phoenix Dream Home Sweepstakes giveaway, the resident intended to profit from ticket sales.
This, the regulator said, meant the activity constituted an illegal gambling operation under state law.
The giveaway, the Department of Gaming said, advertised the chance to win a US$1.3m mountainside home in Arizona.
Participants, it added, were required to purchase entries to be in with the chance of either a home transfer or a cash payout, depending on sales volume.
The regulator has been ordered to remove all gambling-related drawings or giveaways targeting Arizona residents, with the resident promoting the giveaway given similar instructions.
“Illegal gambling can take many forms and it does not matter if it is labelled a sweepstakes, raffle, giveaway or drawing,” said Jackie Johnson, director of the Arizona Department of Gaming.
“Unregulated operations put Arizonans at risk because there is no oversight, and therefore no accountability or safeguards in place.
“The Department will continue to take enforcement action to protect consumers, and we urge the public to learn what is legal before participating in or hosting any gambling activity.”
Raffall’s website says users can “turn raffles into revenue or fundraising success.”
It says the service “enables brands, businesses, influencers and content creators to generate additional income by hosting their own raffles that give their fans the chance to win their personal items, experiences or products as prizes.”
