SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Topics 2/19/25:
- Nine Online Casinos Face Shutdown as Regulators Crack Down
- Iowa Bill Targets Proxy Betting, Makes Account Sharing a Crime
- Black Market Gambling Booms with 522% Surge in Unregulated Betting
- Mississippi Senate Votes to Ban Sweepstakes Casinos
- Oklahoma Lawmakers Advance Sports Betting Legislation
- Swedish Gambling Watchdog Urges Lawmakers to Tackle Illegal Operators
Nine Online Casinos Face Shutdown as Regulators Crack Down
The MGCB has given nine online gambling operators 14 days to stop their illegal operations or face legal action in coordination with the Michigan Attorney General’s Office. Investigators found that these sites lacked proper licensing and imposed unfair withdrawal restrictions on players. Violations include breaching the Lawful Internet Gaming Act and the Michigan Gaming Control and Revenue Act, which could lead to felony charges. Officials warn residents to verify gaming sites through the MGCB’s list of licensed providers, as illegal gambling contributes to billions in lost tax revenue.
Iowa Bill Targets Proxy Betting, Makes Account Sharing a Crime
The Iowa House and Senate are advancing legislation that would criminalize proxy betting and account sharing in sports wagering, allowing law enforcement to charge offenders under Iowa Code section 725.7. The bill, introduced by the Iowa Department of Public Safety, aims to align state laws with the evolving sports betting landscape. Violators gambling over $500 could face a class D felony, punishable by up to five years in prison. While some lawmakers argue the bill strengthens enforcement, others believe sports betting companies should implement stronger safeguards instead of shifting responsibility onto individual bettors. With Iowa’s sports betting market surpassing $2.8 billion in wagers in 2024, the bill reflects growing efforts to regulate and control the industry.
Black Market Gambling Booms with 522% Surge in Unregulated Betting
A study by the International Federation of Horseracing Authorities revealed that UK traffic to unlicensed betting sites surged by 522% between August 2021 and September 2024, compared to just 49% growth for legal bookmakers. The British Horseracing Authority (BHA) warns that stringent affordability checks and restrictive regulations may be pushing bettors toward the black market, which offers fewer consumer protections and contributes nothing to UK sports or tax revenue. The Betting and Gaming Council echoed concerns, citing a recent study estimating that 1.5 million Brits spend up to £4.3 billion on unregulated gambling. Officials are urging a balanced regulatory approach to prevent further market leakage and mitigate risks to consumers.
Mississippi Senate Votes to Ban Sweepstakes Casinos
The Mississippi Senate overwhelmingly approved Senate Bill 2510 in a 44-1 vote, making it the first legislative body in the U.S. to pass a sweepstakes casino ban. If enacted, the bill would impose a $100,000 fine and up to 10 years in prison for operating online sweepstakes casinos. The legislation builds on the state’s previous ban on sweepstakes cafes, reflecting a broader national crackdown on these platforms. While supporters argue the bill modernizes existing laws, critics, including the Social and Promotional Gaming Association (SPGA), claim it unfairly targets legal entertainment models and favors the traditional casino industry. Similar bans are being considered in New Jersey, New York, Maryland, and Connecticut, signaling a growing trend in U.S. gambling regulation.
Oklahoma Lawmakers Advance Sports Betting Legislation
Oklahoma lawmakers are moving forward with House Bills 1047 and 1101, which aim to legalize sports betting in the state through Native American tribes. H.B. 1047 would grant tribal operators the flexibility to run both in-person and mobile sportsbooks, with a proposed 10% tax rate. Meanwhile, H.B. 1101, a “trigger bill,” would allow voters to decide on the issue if legislative efforts fail. The bills must clear further House and Senate votes before becoming law, but opposition remains, including from Governor Kevin Stitt, who has expressed concerns over limiting licenses to tribal entities. With Oklahoma’s extensive casino industry but no legal sportsbooks, the debate over regulation continues.
Swedish Gambling Watchdog Urges Lawmakers to Tackle Illegal Operators
The Swedish Trade Association for Online Gambling (BOS) has called on the Ministry of Finance to amend Sweden’s Gambling Act, addressing a loophole that lets unlicensed gambling operators serve Swedish players as long as they do not use the Swedish language or currency. The trade body argues that this gap in regulation has led to 25% of gambling activity occurring outside Sweden’s licensed system, putting consumers at risk. BOS proposes criminalizing all unlicensed gambling, aligning Sweden’s regulations with Denmark’s stricter model. Secretary General Gustaf Hoffstedt stated that eliminating unlicensed gambling is essential to improving consumer protections and increasing Sweden’s channelization rate, ensuring more players use legal, regulated platforms.
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