SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Topics 3/19/25:
- Indiana Officials Warn of Illegal Gambling Website Impersonating Casinos
- Connecticut Suspends Online Gaming Provider’s License Over Illegal Casino Operations
- Nevada Bill Proposes Tougher Penalties for Illegal Online Gambling Operators
- Robinhood Relaunches Sports Prediction Markets with Kalshi Ahead of March Madness
- DraftKings Seeks Approval for Prediction Market Platform
- Illinois Targets PrizePicks, Reigniting Daily Fantasy Sports Debate
- University of Missouri Considers Sports Betting Ban for Faculty, Staff, and Students
- Illegal Gambling in the Netherlands Surges After Deposit Limits, Study Finds
- Brazilian Senator Proposes Ban on Sports Betting Ads Amid Market Growth
Indiana Officials Warn of Illegal Gambling Website Impersonating Casinos
Indiana Attorney General Todd Rokita and the Indiana Gaming Commission have issued a warning about an illegal online gambling website that is deceptively using branding from legitimate Indiana casinos. The website, which lacks consumer protections and violates state law, has been promoted through deceptive ads on Facebook, misleading players into believing it is a licensed platform. Officials emphasize that only sports wagering is legally permitted in Indiana and urge residents to verify the legitimacy of any gambling operator before engaging. Authorities are seeking action against the fraudulent site’s operators and have provided resources for reporting illegal gambling activity. Hoosiers are advised to check licensing credentials through the Indiana Gaming Commission and to be cautious of misleading online ads that use generic names like “Online Games.” Reports of illegal gambling can be submitted via the Indiana Gaming Commission’s tip line or the Indiana Attorney General’s Office.
Connecticut Suspends Online Gaming Provider’s License Over Illegal Casino Operations
The Connecticut Department of Consumer Protection (DCP) has suspended the license of High5Games, a legal online slot content provider, for operating an illegal unlicensed casino, High5Casino. The company falsely marketed itself as a licensed platform and accepted wagers from 1,100 customers, including 108 individuals on the state’s voluntary self-exclusion list. In total, 911 players lost nearly $938,000 on the illegal platform. The DCP has charged High5Games with 1,065 counts of illegal gaming activity, each carrying a penalty of up to one year in jail and a $2,000 fine. The department will seek restitution for affected players and reminded the public that DraftKings/Foxwoods and FanDuel/Mohegan Sun are the only two legal online casinos in Connecticut.
Nevada Bill Proposes Tougher Penalties for Illegal Online Gambling Operators
Nevada lawmakers are pushing for stricter enforcement against illegal online gambling with Senate Bill 256 (SB 256), which seeks to enhance penalties for unlicensed operators. The bill, introduced on February 27 and currently under review by the Senate Judiciary Committee, proposes the “disgorgement” of profits from illegal gambling activities, turning some offenses from misdemeanors into felonies. SB 256 also aims to extend liability beyond Nevada’s borders, ensuring that offshore operators accepting bets from Nevada residents can be prosecuted. Supporters of the bill include the Nevada Gaming Control Board, the Nevada Resort Association, and the Vegas Chamber, all of whom argue that tougher penalties are necessary to protect legal operators, state tax revenue, and consumers. If passed, SB 256 could set a precedent for other states looking to strengthen their gambling enforcement measures.
Robinhood Relaunches Sports Prediction Markets with Kalshi Ahead of March Madness
Robinhood has reintroduced sports event prediction markets, collaborating with Kalshi to offer betting-style event contracts for the upcoming NCAA tournaments. This move follows Robinhood’s brief partnership with Kalshi last month for Super Bowl LIX, which was quickly halted after the Commodity Futures Trading Commission (CFTC) requested the markets be shut down. Unlike before, Robinhood has now built its own dedicated prediction markets hub, allowing it to oversee the offerings independently. The company claims to have worked closely with the CFTC in preparation for the launch but did not disclose whether the agency had explicitly approved the markets. Meanwhile, Kalshi continues its regulatory battle with the Nevada Gaming Control Board (NGCB), which issued a cease-and-desist letter labeling Kalshi’s event contracts as unlawful in the state. Kalshi was granted an extension to respond to the NGCB order, while it remains in federal litigation with the CFTC over its ability to offer election-based prediction markets. The regulatory uncertainty adds another layer of complexity to Robinhood and Kalshi’s latest venture.
DraftKings Seeks Approval for Prediction Market Platform
DraftKings is moving forward with plans for a prediction market platform, as indicated by a pending application with the National Futures Association (NFA), the regulatory body for the Commodity Futures Trading Commission (CFTC). The application, filed on July 30, 2024, predates recent industry moves by Crypto.com, Kalshi, and Robinhood into Super Bowl futures betting. While details on “DraftKings Predict” remain scarce, CEO Jason Robins has expressed strong interest in prediction markets, viewing them as a major opportunity rather than a risk. DraftKings is closely watching the upcoming CFTC hearing on sports-related event contracts, which could determine whether such markets are classified as gaming or tradable financial instruments. The outcome of this hearing may have broad implications for DraftKings and the future of regulated prediction markets in the U.S.
Illinois Targets PrizePicks, Reigniting Daily Fantasy Sports Debater
Illinois regulators have taken action against PrizePicks, issuing a cease-and-desist letter that claims certain daily fantasy sports (DFS) contests violate state gambling laws. The move reopens the long-standing debate over whether DFS games are skill-based or unlicensed sports betting. While major DFS operators DraftKings and FanDuel now hold sports betting licenses, PrizePicks and other companies remain in a legal gray area, operating without state taxation or regulation. Illinois lawmakers are now considering a bill to license and tax daily fantasy operators, a move that PrizePicks supports to create a fair and transparent regulatory framework.
University of Missouri Considers Sports Betting Ban for Faculty, Staff, and Students
The University of Missouri (MU) Faculty Council is considering a policy that would prohibit faculty, staff, and students from placing sports bets on Mizzou athletics or any University of Missouri System sports. This discussion follows Missouri voters’ approval of Amendment 2 in November 2024, which legalized sports betting but has yet to launch due to pending licensing by the Missouri Gaming Commission. The proposed ban mirrors Purdue University’s policy, which bars faculty, staff, and students from wagering on Purdue teams, even in states where betting is legal. MU officials stress that this policy would be a statement of values rather than an enforceable legal measure. While no formal steps have been taken yet, the proposal reflects growing concerns about the impact of sports betting on university communities and student-athletes.
The Full Story Here.
Illegal Gambling in the Netherlands Surges After Deposit Limits, Study Finds
A new study from the Quality Mark Responsible Affiliates (KVA) reveals that illegal gambling site traffic in the Netherlands has surged since the introduction of deposit limits in October 2024. Monthly visits to sites promoting “casinos without limits” or “casinos without Cruks” (the Dutch self-exclusion system) have grown from 172,576 in October to over one million by March 2025. The number of illegal gambling domains appearing in search results also rose from 19 to 72 during this period. The Dutch regulator KSA’s deposit cap limits net deposits to €700 per month (€300 for younger players), which has successfully curbed excessive gambling at legal sites. However, the KVA warns that stricter regulations could drive even more players to the black market, urging a more balanced approach to regulation and advertising restrictions.
Brazilian Senator Proposes Ban on Sports Betting Ads Amid Market Growth
Just three months into Brazil’s newly regulated sports betting market, Senator Styvenson Valentim has proposed a ban on all betting advertisements across media platforms. The amendment, aimed at revising the country’s 2018 betting laws, argues that sports betting marketing disproportionately targets younger demographics and fuels impulsive gambling behavior. Valentim compared the need for tighter restrictions on gambling ads to those placed on tobacco advertising. Brazil’s newly established Secretariat of Prizes and Betting (SPA) has already granted licenses to over 71 operators, with hundreds more applications pending. The market is projected to generate $34 billion in turnover by 2028, but lawmakers remain concerned about the influence of both legal and black-market operators. While the proposed bill focuses on broadcast advertising, it remains unclear whether sports sponsorships would also be affected.
The Full Story Here.
Click here to read our latest blog post: Efficient Market Hypothesis in Sports Betting
