ALJDEC decisions subject to certification as final

24F-006-GAM · Department of Gaming · 2025-10-20

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

In The Matter Of:

SBOpco, LLC d/b/a SuperBook and Fort Mojave Indian Tribe

Appellants

No. 24F-006-GAM

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: October 6, 2025

APPEARANCES: James M. Stipe and Valerie Marciano appeared on behalf of the Arizona Department of Gaming.

ADMINISTRATIVE LAW JUDGE: Adam D. Stone

EXHIBITS ADMITTED INTO EVIDENCE: Arizona Department of Gaming Exhibits 1-4 were admitted and its prehearing memorandum was admitted into evidence.

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FINDINGS OF FACT

In the summer of 2021, SBOpco, LLC dba SuperBook (“SuperBook”) applied for licensure by the Arizona Department of Gaming (“Department”) as an event wagering operator. It did so as the designee of its operating partner, the Fort Mojave Indian Tribe (“FMIT”). It was awarded an event wagering license (EW2000011) to operate mobile event wagering in the State of Arizona on August 27, 2021.

On July 18, 2024, SuperBook notified the Department of its decision to cease event wagering operations in Arizona. Effective Friday July 19, 2024, SuperBook did, in fact, cease operations when it stopped accepting new registrations, deposits and wagers.

On July 22, 2024, SuperBook met with the Department to discuss the creation and implementation of a plan to wind down all player accounts. This included a process and timeline for closing procedures, settlement of outstanding liabilities, and the refund of player accounts.

SuperBook completed its wind down plan, and on July 11, 2025, it informed the Department that “...The remaining four employees will be let go later today and our systems will go dark.”

SuperBook has failed to pay its last two license renewal fees (totaling $300,000), which were overdue and delinquent.

The Department investigated Appellant’s actions, and found that it violated at least two provisions of the Arizona Administrative Code.

Based up these violations, the Department issued a notice of intent to revoke Appellants’ event wagering license and issued a Notice of Hearing regarding the same on September 12, 2024.

On September 26, 2025, the Department and Appellant, Fort Mohave Indian Tribe entered into a Stipulation for Partial Dismissal With Prejudice.

After multiple continuances, hearing was held on October 6, 2025.

Although the start of the duly noticed hearing was delayed fifteen minutes to allow Appellant additional travel time, Appellant did not appear, personally or through or attorney, and did not contact OAH to request that the start of the hearing be further delayed. Further. Appellant did not request to appear telephonically at the hearing and did not request that the hearing be continued. Consequently, Respondent did not present any evidence to defend its license.

CONCLUSIONS OF LAW

The Department is charged with issuing licenses for Event Wagering in the State of Arizona, and as such the Department has jurisdiction to resolve this matter. Hearings on appeals from the Department’s decisions are conducted through the Office of Administrative Hearings, an independent state agency

Appellant must establish that the notice of intent to revoke was improper, by clear and convincing evidence. Clear and convincing evidence is “[e]vidence indicating that the thing to be proved is highly probable or reasonably certain.”

A.A.C. R19-4-105(J) provides:

J. The Department may revoke a license if the responsible party fails to continue operations.

A.A.C. R19-4-113(C) provides:

C. The responsible party shall notify the Department no less than 180 days prior to ceasing operations and shall provide a written plan to settle any outstanding liabilities and/or refund player account funds.

A.R.S. § 5-1306(A)(1) states in pertinent part, the following:

A. The department may revoke, suspend or deny a license when an applicant or licensee meets any of the following criteria:

1. Violates, fails or refuses to comply with the provisions, requirements, conditions, limitations or duties imposed by this chapter and other laws and rules, or if any such violation has occurred on any event wagering system operated by any such person or over which the person has substantial control.

The facts in this case demonstrated that SuperBook failed to provide the Department with the proper notice as required by the rules when it only provided 1 day of notice that it was ceasing operations. Based upon that failure, the Department had the right to revoke SuperBook’s license.

RECOMMENDED DECISION

Based on the foregoing, the Administrative Law Judge recommends that on the effective date of the Order, the Department dismiss SuperBook’s appeal and affirm its decision to revoke its event wagering operator license.

In the event of certification of the Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the Order will be forty (40) days from the date of that certification.

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-137160-45720000Done this day, October 20, 2025.

/s/ Adam D. Stone

Administrative Law Judge

Transmitted by either mail, e-mail, or facsimile to:

Jackie Johnson, Director

Department of Gaming

Luis A. Ochoa

Quarles & Brady, LLP

[email redacted]

James M. Stipe

Burch & Cracchiolo, P.A.

[email redacted]

[email redacted]

Valerie Marciano

Arizona Office of the Attorney General

[email redacted]

By: OAH Staff