SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Topics 1/8/25:
- Crypto.com the Latest Site Wanting In on Sports Prediction Markets
- Wall Street’s Hot New Trade Is Fueling Gambling Addictions
- 16 Provinces Raided: Turkey Takes Aim at Illegal Betting Influencers
- Brazil Betting Market Debuts with 14 Licensed Operators
- DraftKings Launches Odds-Boosting Subscription Service
- 2024 Gambling Industry Fines Top $184 Million
- Maryland Lawmaker Pushes Online Casino Legalization
- NC Universities Gain $17M from Sports Betting Taxes
Crypto.com the Latest Site Wanting In on Sports Prediction Markets
Crypto.com has introduced a sports section on its app and website, offering users the ability to trade event contracts, starting with Super Bowl predictions, using cryptocurrency. Unlike traditional sports betting, this platform operates on a derivative-like model, where users can buy, hold, and sell prediction contracts as market odds shift. While Crypto.com is registered with the Commodity Futures Trading Commission (CFTC) to offer derivatives, the legality and regulatory framework for such products remain complex. Competing against established giants like DraftKings and FanDuel, who control 73% of the U.S. online sports betting market, Crypto.com aims to bridge the trillion-dollar crypto asset class with the booming sports betting industry. However, its success may hinge on navigating regulatory challenges and gaining user trust in a competitive landscape.
Wall Street’s Hot New Trade Is Fueling Gambling Addictions
Zero-day options trading, where bets expire within hours or days, has surged to unprecedented levels, with nearly half of Nvidia and Tesla options trading focused on contracts expiring within five days. This trend, highlighted by SpotGamma data, has contributed to compulsive gambling behaviors in financial markets, as traders chase quick, high-risk returns. The Wall Street Journal spoke with over 30 individuals who described the addictive nature of short-dated options, which can deliver massive wins or devastating losses in seconds. As Wall Street explores ways to expand these one-day trades, concerns grow over their impact on mental health and financial stability.
16 Provinces Raided: Turkey Takes Aim at Illegal Betting Influencers
In a major crackdown on illegal betting and virtual gambling, Turkish authorities detained 27 suspects across 16 provinces, including high-profile social media influencers. Interior Minister Ali Yerlikaya revealed that the operation followed four months of investigation led by Public Prosecutor’s Offices and the Cybercrime Department. Among those detained were influencers with large followings, such as Zeynep Buse Korkmaz, who has 1.3 million followers on Instagram. Arrests were made for promoting illegal betting platforms, often through subtle advertising tactics like embedding logos in posts. This operation is part of a broader effort by the Turkish government to address illegal gambling, tax evasion, and money laundering facilitated by influencers.
Brazil Betting Market Debuts with 14 Licensed Operators
On January 1, 2025, Brazil officially launched its long-awaited regulated online betting market, granting full licenses to 14 companies and provisional licenses to 52 others. The market’s regulation process, delayed since legislation passed in 2018, establishes comprehensive rules to ensure bettor safety and curb illegal gambling. Key measures include domain restrictions, facial recognition for user registration, and bans on credit and cryptocurrency betting. Operators face a 36% effective tax rate on gross gaming revenue and a 15% tax on player winnings above BRL2,824. The Secretariat of Prizes and Bets (SPA) aims to create a transparent, safe environment while tackling black-market operators. Major brands like KTO and Caesars Sportsbook expressed excitement over their licenses, while some notable players remain absent from the list.
DraftKings Launches Odds-Boosting Subscription Service
DraftKings has unveiled Sportsbook+, a subscription service designed to enhance parlay betting profits for members. At $20 per month, users receive stepped-up odds boosts on parlays with individual legs set at -500 or narrower. The profit boost starts at 10% for two-leg parlays and doubles for parlays with 11 or more legs. The offering aligns with DraftKings’ broader strategy to drive parlay adoption and increase average leg counts, a focus highlighted in recent earnings calls. Currently available in New York to select customers, the service promises to create excitement and loyalty while steering bettors toward wagers that maximize sportsbook margins.
2024 Gambling Industry Fines Top $184 Million
Global gambling regulators issued $184.4 million in fines during 2024, a 73.3% decrease from 2023’s record $442.6 million. Spain led with $69.3 million in penalties, primarily targeting unlicensed operators, followed by Australia at $58.5 million, including a $44.6 million fine for SkyCity Adelaide. The U.S. contributed $9.4 million in fines, with the largest being a $7.5 million penalty against MGM Resorts for illegal sports betting operations. Other major fines included $25.7 million in the Netherlands and $11.5 million in Sweden, as regulators continued cracking down on compliance failures globally.
Maryland Lawmaker Pushes Online Casino Legalization
State Delegate Vanessa Atterbeary has introduced House Bill 17 to legalize online casinos in Maryland, allowing residents aged 21 and older to play games like poker and slots. The bill outlines a regulatory framework emphasizing licensing, a 15% tax on gaming revenue, and safeguards against underage gambling and addiction. Delegate Atterbeary highlighted the potential for hundreds of millions in annual revenue, part of which would support the state’s Education Trust Fund. Despite past opposition from brick-and-mortar casinos and labor unions, the bill represents a renewed effort to boost Maryland’s economy. A statewide referendum may be required for final approval.
NC Universities Gain $17M from Sports Betting Taxes
North Carolina public universities have benefited from $17.3 million in sports betting tax revenue, representing 20% of the $98.6 million collected between March and November 2024. The funds are evenly distributed among 13 UNC System institutions, supporting field upgrades, practice complexes, and sports medicine facilities. With a tax rate of 18%, projections for 2025 indicate continued growth in revenue, demonstrating the positive impact of regulated sports betting. State oversight includes detailed compliance requirements and rules for operators to ensure responsible practices and public protection.
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