SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Topics 4/16/25:
- Maryland Online Sweepstakes Ban Fails as Legislative Session Closes
- Pennsylvania Issues 18 Cease-and-Desist Orders as Sweepstakes Casinos Surge
- Michigan Regulator Targets 13 More Illegal Offshore Gambling Sites
- Former UK Lawmaker Among 15 Charged in Election Betting Scandal
- Kansas Sportsbooks at Risk of Shutdown Following Legislative Vote
- New Jersey Mafia Boss, Councilman Among Dozens Charged in Gambling Bust
- Kalshi Wins Injunction to Keep Sports Markets Live in Nevada, Claims Legal Momentum
- North Carolina Lawmakers Move to Ban College Athlete Prop Bets
Maryland Online Sweepstakes Ban Fails as Legislative Session Closes
Maryland Senate Bill 860, which aimed to ban online sweepstakes casinos using dual-currency models for real prizes, passed the Senate unanimously but failed to get a vote in the House Ways and Means Committee before the 2025 session adjourned. The bill would have criminalized not only operators but also their suppliers and partners, giving the Lottery regulatory power to deny or revoke licenses. With its failure, Maryland regulators must now rely on enforcement actions like cease-and-desist letters to tackle unlicensed sweepstakes operators. This collapse comes alongside the failure to pass iCasino legalization. Advocacy group SPGA welcomed the bill’s failure and argued such bans threaten legitimate promotional models. Similar bills are still active in other states including CT, LA, NV, NJ, and NY.
Pennsylvania Issues 18 Cease-and-Desist Orders as Sweepstakes Casinos Surge
The PGCB disclosed during a Gaming Oversight Committee hearing that it had issued 18 cease-and-desist letters to sweepstakes casinos, many of which are offshore or operate without proper state licensing. While all 18 operators have complied so far, the growing number of new sites creates a “whack-a-mole” scenario. PGCB officials said the current gaming law definitions limit their ability to regulate these operators, even though they believe the platforms offer illegal gambling. Legal fixes, including revising the Gaming Act’s language, were proposed to give the board more regulatory power. Committee Chairman Russ Diamond agreed legislation is needed and emphasized the importance of anticipating future loopholes. The sweepstakes platforms, unlike licensed casinos, are not required to follow rules around fairness, age verification, or responsible gambling, making them a threat to Pennsylvania’s legal industry.
Michigan Regulator Targets 13 More Illegal Offshore Gambling Sites
The MGCB has ordered 13 offshore gambling websites to cease operations in Michigan within 14 days or face legal action. The sites — including Captain Jack Casino, Casino Brango, Ducky Luck Casino, and others — are operated from jurisdictions like Curaçao, Costa Rica, and Anjouan, and do not hold valid Michigan licenses. The regulator cited consumer risks including high wagering requirements, blocked withdrawals, and a lack of protections like responsible gambling tools or data security. MGCB Executive Director Henry Williams emphasized the danger these unregulated platforms pose and affirmed the state’s commitment to a secure and lawful gaming environment. The crackdown reinforces the state’s push to protect residents and uphold the integrity of Michigan’s gaming industry.
Former UK Lawmaker Among 15 Charged in Election Betting Scandal
The UK Gambling Commission has charged 15 people, including ex-Conservative MP Craig Williams and other former government affiliates, with cheating in an election betting scandal. The investigation centers around suspiciously timed wagers made using insider knowledge of the surprise announcement by then-Prime Minister Rishi Sunak setting the election for July 4, 2024. While betting on elections is legal, using confidential information for personal gain is not. The charges carry potential prison sentences of up to two years. Williams had admitted to placing a £100 bet days before the announcement, calling it an “error of judgment.” The scandal erupted after the Conservative Party’s heavy electoral defeat to Labour and has led to party suspensions and wider scrutiny over betting practices tied to political events.
Kansas Sportsbooks at Risk of Shutdown Following Legislative Vote
Kansas lawmakers voted to prohibit the renewal of existing sportsbook licenses, putting the future of legal sports betting in jeopardy despite it still being technically legal. Six active sportsbooks — BetMGM, Caesars, DraftKings, Fanatics, FanDuel, and ESPN BET — hold licenses expiring August 31, 2027, but regulators are barred from extending them due to a provision in the state’s budget bill. Although Democratic Governor Laura Kelly vetoed the provision, the Republican-led legislature overrode it. The restriction is temporary, expiring June 30, 2026, but its extension could effectively end legal sportsbooks in the state. Kansas may reevaluate its sports betting framework in the 2026 legislative session, amid talks of shifting to a sole-source model. The decision comes ahead of Missouri’s anticipated mobile betting launch, adding regional pressure.
New Jersey Mafia Boss, Councilman Among Dozens Charged in Gambling Bust
New Jersey Attorney General Matt Platkin announced charges against 39 individuals tied to an illegal gambling ring allegedly run by a top Lucchese crime family member, George Zappola, and Prospect Park councilman Anand Shah. The operation included four illegal poker clubs and an online sportsbook, with Shah managing games and a betting platform. The ring earned over $3 million in illicit revenue, using shell companies to hide profits. While Shah isn’t facing charges tied directly to his public office, the investigation highlighted illegal poker, gambling machines, and offshore betting sites. The case marks a major organized crime enforcement effort by state and federal authorities.
Kalshi Wins Injunction to Keep Sports Markets Live in Nevada, Claims Legal Momentum
Kalshi secured a legal victory in Nevada as U.S. District Court Judge Anthony Gordon granted a preliminary injunction allowing the CFTC-regulated platform to continue offering sports event contracts in the state. The judge found Kalshi showed a “likelihood of success on the merits,” countering Nevada Gaming Control Board’s claim that Kalshi’s offerings constituted unlicensed sports betting. The decision follows Kalshi’s earlier win over the CFTC to offer election contracts. The ruling maintains the status quo while litigation continues and sets a precedent for similar lawsuits Kalshi has filed or may file in other states including New Jersey, Illinois, Ohio, and Maryland. Kalshi’s latest trading volume includes $500M in NCAA Tournament contracts and $13.4M for The Masters.
The Full Story Here.
North Carolina Lawmakers Move to Ban College Athlete Prop Bets
North Carolina lawmakers have introduced House Bill 828, aiming to ban proposition bets on individual college athletes, citing concerns about the impact of betting on student-athletes and the integrity of collegiate sports. The bipartisan bill is backed by Reps. Mitchell Setzer, Pricey Harrison, Marcia Morey, Neal Jackson, and Joseph Pike. It also proposes restrictions on wagering at college sports venues for eight hours before and during events. The move aligns with NCAA President Charlie Baker’s call for sportsbooks to ban such bets. The initiative follows a record-setting month of sports betting in North Carolina, with $685M in wagers in March 2025, driven in part by Duke’s NCAA Final Four appearance.
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