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Compliance Updates

Arizona Moves Closer to Consolidating Gambling Regulators

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The Arizona House Rules Committee voted 8-0 Monday to advance a bill that would consolidate the commissions that oversee racing, gaming, boxing, and mixed martial arts. The bill is now headed to a Senate Appropriations Committee hearing, scheduled for this week.

House Bill 2509, introduced by Republican Leo Biasiucci, would establish a new state gaming commission to regulate and promote activities that currently fall under three separate commissions: the Arizona Racing Commission, the Arizona State Boxing and Mixed Martial Arts Commission, and the Department of Gaming. If passed, the law will come into effect on 30 June 2023.

The legislation includes provisions for determining six members of the new Arizona Gaming Commission, four of whom would be gubernatorial appointees. The latter would include a director of the commission with at least five years’ experience in public or business administration, a certified public accountant, a member experienced in law enforcement, and another gubernatorial public appointee. In addition, the Senate president and House speaker would each have a public appointee.

If passed, the bill would make Arizona the second state after Tennessee to remove regulation of the gaming industry from the original regulator. Tennessee legislators voted last year to take responsibility for regulating the new sports betting industry away from the Tennessee Lottery and hand it to the Sports Wagering Advisory Council.

Arizona has had regulated online sports betting since September. The state allowed for up to 20 sports betting licenses, 10 of which were dedicated for professional sports teams and 10 to be allocated to federally recognized tribes located in the state. As it turns out, however, not all of the sports team licenses have been claimed and there are more tribes than licenses available for them.

The Arizona Department of Gaming was created in 1995 and assumed responsibility from the Arizona Department of Racing to monitor Indian gaming operations. The duties of the department expanded in 2015 to include regulating commercial horse and dog racing, parimutuel wagering, boxing and mixed martial arts. Arizona outlawed dog racing in 2016.

Compliance Updates

PHAI Files Lawsuit in Pennsylvania Over Caesars’ Dangerous Online Casino Promotion and “Pay Through Bonuses”

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The Public Health Advocacy Institute (PHAI), a nonprofit advocacy organization that continues to lead the movement to develop a comprehensive public health response to the threat posed by the gambling industry, announced a new lawsuit filed in Philadelphia, Pennsylvania, seeking to expose and stop an alleged dangerous, misleading, and illegal “deposit match” promotion by Caesars Online Casino and its brick-and-mortar partner Harrah’s Philadelphia Casino.

In this promotion, Caesars and its partners are luring new customers with a false and misleading promise of a “$2500 deposit match,” according to the lawsuit. Only in the small-print terms and conditions is it disclosed that a new customer playing Blackjack is required to gamble and risk $375,000 in just the first seven days after opening an account. In other words, no money or winnings can be withdrawn unless a total of $375,000 is gambled and risked. All money lost during the first 7-day period is kept by Caesars and Harrah’s Casino.

The lawsuit alleged that Caesars and its partners have effectively rewritten the laws of the Commonwealth of Pennsylvania by mandating that new customers gamble up to $375,000 before being paid any of their winnings. The public is not told that the promotion is designed to snare new customers in a “wild chase of action,” where the bonus is unattainable and therefore impossible to win.

Under the leadership of Executive Director Mark Gottlieb, PHAI continues to spearhead the burgeoning movement to bring comprehensive public health change to the threat posed by the gambling industry and its partners across the US.

Gottlieb said: “We know the gambling industry, with the assistance of the American Gaming Association (AGA) and the National Council of Legislators from Gaming States (NCLGS), is aggressively attempting to push the legalization of online casino gambling across the United States. Thus far, the seven states with online casino gambling seem ill-prepared or unwilling to regulate the wild tactics of the industry. This promotion, engineered by Caesars, is among the most egregious we have seen to date.”

Dr. Harry Levant, Director of Gambling Policy at PHAI, warned that Caesars and others in the gambling industry are acting with impunity, disregarding existing laws, and placing the public directly at risk.

According to Dr. Levant: “It is unconscionable for a gambling company to knowingly require people to gamble excessively and put their mental health at risk as a condition to cash out their winnings. More importantly, nothing in Pennsylvania’s gambling rules or laws permits a casino to refuse payment unless and until customers begin gambling to excess. This is dangerous to Caesar’s customers, immoral, and just plain wrong.”

PHAI Director of Litigation Andrew Rainer, Esq., said: “PHAI continues to utilize the courts to protect clients and the public from unreasonable risks of harm caused by the negligent, careless, and reckless conduct of the gambling industry.”

PHAI Founder and President. Dr. Richard Daynard said: “The mission of the Public Health Advocacy Institute is to protect public health and advance social justice. The days of the gambling industry disregarding public health and safety are coming to an end. When Caesars doesn’t play fair, it puts players’ health at risk.”

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The case is Brubaker vs Chester Downs and Marina LLC et al. (Ct of Common Pleas, Philadelphia County, First Judicial District, Case ID 250602325).

In December 2023, PHAI and its Center for Public Health Litigation filed a class action suit against DraftKings in Massachusetts that garnered nationwide headlines. In August 2024, a judge in Massachusetts denied DraftKings’ motion to dismiss, allowing the litigation to move forward.

In October 2024, PHAI filed a lawsuit against the Massachusetts Gaming Commission, asking the court to compel the MGC to adhere to state law and turn over data that casinos compile to track player behavior. Under Section 97 of the Expanded Gaming Act, the Massachusetts Gaming Commission is required to collect behavioral data from casino operators and share anonymized customer data with researchers. This data is essential for analyzing what casino practices are causing harm and who is being harmed. The Gaming Commission has been subject to the legal requirement to collect this data since its formation in 2011. Now, more than a decade later, the Commission has yet to collect a single piece of data from any licensee or make any data available to researchers.

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Compliance Updates

The Saskatchewan Indian Gaming Authority (SIGA) Selects New Board Chair

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The Saskatchewan Indian Gaming Authority (SIGA) has announced Chief Tammy Cook-Searson, of the Lac La Ronge Indian Band, as its new Board Chair for SIGA’s Board of Directors.

SIGA is a non-profit First Nation gaming operator for seven land-based casinos and the online gaming platform PlayNow.com in Saskatchewan.

Chief Cook-Searson first joined SIGA’s Board of Directors in 2018 and has been a regular SIGA Board member as well as a member of SIGA’s Audit & Finance Committee.

She is serving in her 20th year as Chief of Lac La Ronge Indian Band and has a Master of Business Administration (MBA) degree and a graduate diploma in management from Athabasca University. She also holds honorary degrees from the University of Regina, the Saskatchewan Indian Institute of Technologies (SIIT) and Saskatchewan Polytechnic.

Chief Cook-Searson replaces outgoing Board Chair former Chief of Muskowekwan First Nation Reginald Bellerose, who has held the Board Chair position since February 4, 2015.

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Compliance Updates

MGCB Showcases National Leadership on Illegal Gaming Enforcement at 2025 NAGRA Conference

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Michigan Gaming Control Board (MGCB) Criminal Investigations Section Manager John Lessnau recently represented the agency at the 2025 North American Gaming Regulators Association (NAGRA) Annual Training and Education Conference, held June 2-5 in Nashville, Tennessee.

Lessnau presented a featured session titled “Case Study: Tackling the Illegal/Offshore Gaming Market” and facilitated a discussion on how Michigan is setting the standard nationwide in combatting illegal and unregulated gaming operations. His presentation outlined Michigan’s strategic enforcement model and collaborative approach to removing illegal gambling from the state and deterring bad actors from targeting Michigan consumers.

“Michigan is at the forefront of the national conversation on illegal gambling, and we were proud to share how our efforts are making a real impact. We’re leveraging every tool available—from anonymous tip lines and interagency partnerships to direct enforcement and public awareness—to crack down on illegal gaming operations that threaten consumer protection and undermine legal businesses,” MGCB Criminal Investigations Section Manager John Lessnau said.

To date, the MGCB has issued nearly 100 cease-and-desist letters to unauthorized gambling operators—including high-profile offshore websites—and continues to pursue new cases with more enforcement actions expected in the months ahead. These efforts underscore the agency’s commitment to upholding integrity in Michigan’s legal, regulated gaming market.

The MGCB’s aggressive stance on illegal and offshore gambling has drawn national recognition and strengthened its partnerships with regulatory peers across the US.

As part of the NAGRA conference, MGCB Executive Director Henry Williams was honored with the 2025 Excellence in Gaming – Individual Award, recognizing his leadership in expanding responsible gaming outreach and fortifying criminal enforcement efforts. The award reflects the continued success of the MGCB under Williams’ direction and the agency’s role as a model for effective, transparent regulation.

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