Arizona Home Being Raffled Off for $10 Violates State’s Gambling Laws

A mountainside estate in Phoenix was recently marketed as a prize in a splashy online sweepstakes, but Arizona regulators say the promotion crossed a legal line.

The Arizona Department of Gaming (ADG) has issued cease-and-desist orders to Raffall, a U.K.-based raffle platform, and an Arizona resident who promoted the “Phoenix Dream Home Sweepstakes” through the no-longer-available website winthisazhome.com. The promotion promised participants the chance to “Win a Luxury $1.3M Arizona Mountainside Home” for the price of a ticket.

“Illegal gambling can take many forms and it does not matter if it is labeled a sweepstakes, raffle, giveaway, or drawing,” said Jackie Johnson, director of the Arizona Department of Gaming.

The Arizona investor originally listed his fully remodeled, 4,140-square-foot mountainside home through Raffall, offering tickets starting at $10.

“I’ve never really seen something like this done here in the U.S., so it felt like a unique opportunity to try,” owner John Smith previously told Realtor.com®. “I think it's an exciting and fun opportunity for someone to win an incredible home for only about $10.”

That home, built in 1995 and situated on 2.5 acres in North Phoenix, showcased sweeping desert views, vaulted ceilings, and a remodel with marble countertops and spa-like baths. Smith had said the raffle created a “one-of-a-kind chance” for buyers priced out of Arizona’s competitive market.

Realtor.com reached out to Smith for comment on the recent developments.

Why the sweepstakes was illegal

According to the ADG’s investigation, entries were sold online with the promise of awarding either the home itself or a cash payout, depending on the number of tickets purchased. Regulators determined that the setup was designed to enable organizers to profit from ticket sales, rendering it an unlicensed gambling operation under Arizona law.

“Unregulated operations put Arizonans at risk because there is no oversight, and therefore no accountability or safeguards in place," said Johnson. "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.”

Arizona law permits gambling only if it’s specifically authorized under state statute. While raffles are allowed, they can be conducted only by charitable, tax-exempt organizations—and not for personal profit.

In this case, the ADG said the sweepstakes failed on several fronts: It was operated for profit, it was not tied to a qualifying nonprofit, and it was open to participants under the age of 21.

The department warned that the operation may also trigger felony charges under Arizona law, including promotion of gambling, illegal control of an enterprise, and money laundering.

Foreign-based platforms like Raffall add another layer of risk, officials said, because they don’t adhere to U.S. gambling laws and leave consumers without key protections.

What consumers should do

The state is urging Arizona residents to remain cautious about online sweepstakes and raffles, particularly those operated by overseas companies.

If you purchased entries in the Phoenix sweepstakes, ADG recommends taking these immediate actions:

• Stop participating and do not buy additional entries.
• Contact your bank or credit card company to dispute the charges or request a chargeback.
• Monitor your accounts for unauthorized activity.
• Report potential identity theft to the Federal Trade Commission at IdentityTheft.gov (English) or RobodeIdentidad.gov (Spanish).

Importantly, ADG noted that it cannot provide refunds or intervene in disputes with unlicensed operators. Instead, consumers should work directly with financial institutions or seek legal counsel. Complaints may also be filed with the Arizona Attorney General’s Consumer Information and Complaints Unit.

The case underscores both the allure and the risks of real estate raffles. While some may provide genuine opportunities, others can blur the line into illegal gambling. For Arizona residents hoping to score a dream home, regulators say the safest path is still the traditional one: through licensed agents, brokers, and vetted real estate transactions.