SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Topics 3/26/25:
- Google and Apple Hit with RICO Lawsuit Over Sweepstakes Gambling Apps
- Maryland Drops iCasino Push as Governor Prioritizes Budget Fix with Sports Betting Tax Hike
- Everton, Leicester Face Backlash Over Sponsorship Deals With Allegedly Unlicensed Gambling Brands
- How Sweepstakes Casinos Skirt U.S. Gambling Laws to Operate in 47 States
- Michigan Orders 10 More Unregulated Online Casinos to Cease Operations
- Florida Bill Aims to Block Revolving Door After Regulator Joins FanDuel
- Nevada Bill Targets Illegal Online Gambling with Harsher Penalties
- Massachusetts Probes Robinhood Over March Madness Betting Contracts
Google and Apple Hit with RICO Lawsuit Over Sweepstakes Gambling Apps
A federal RICO lawsuit has been filed against Google and Apple, accusing the tech giants of distributing and profiting from illegal sweepstakes casino apps. Plaintiffs allege the companies knowingly enabled unlawful gambling by distributing the apps, facilitating payments, and promoting the platforms through targeted advertising. The suit claims the companies provided marketing tools and behavioral data to developers, aiding in the exploitation of vulnerable consumers. The complaint frames the tech firms as integral players in a broader “Sweepstakes Casino Enterprise,” accusing them of financial entanglement in illegal gambling activity and seeking restitution for affected users.
Maryland Drops iCasino Push as Governor Prioritizes Budget Fix with Sports Betting Tax Hike
Maryland’s push to legalize internet casino gaming appears to have stalled as Gov. Wes Moore and lawmakers focus on closing a projected $3.3 billion deficit through other means, including raising the sports betting tax rate from 15% to 20%. iCasino legislation from Del. Atterbeary and Sen. Watson gained little momentum amid growing attention to banning sweepstakes casinos. Moore’s tax hike is projected to raise an additional $32 million annually, and aligns Maryland with other states like Ohio and Illinois that recently increased sports betting taxes. Meanwhile, Maryland Lottery and Gaming issued a cease-and-desist to VGW and awaits a legal response by March 27 regarding alleged unlicensed gaming activity.
Everton, Leicester Face Backlash Over Sponsorship Deals With Allegedly Unlicensed Gambling Brands
The Coalition to End Gambling Ads (CEGA) has called out English Premier League clubs Everton and Leicester City for continuing to display sponsorships from Stake.com and BC.Game, two crypto-based gambling platforms that allegedly remain accessible in the UK via VPNs despite giving up their UK licenses. CEGA urged the UK Gambling Commission (UKGC) to take action, highlighting the potential legal liability of club officers under UK law. Both operators used white-label partnerships with TGP Europe, which allowed them to operate in the UK by proxy. While Stake and BC.Game claim to uphold regulatory standards, CEGA demonstrated that their platforms could be accessed with minimal verification. The controversy underscores mounting scrutiny over the Premier League’s global gambling affiliations and loopholes in the white-label system.
How Sweepstakes Casinos Skirt U.S. Gambling Laws to Operate in 47 States
Sweepstakes casinos have exploded in popularity by exploiting a legal loophole: the “no purchase necessary” rule used in promotional sweepstakes. These platforms allow users to purchase virtual currency (Gold Coins) and receive bonus Sweepstakes Cash, which can be used to gamble and redeem winnings for cash—effectively mimicking online casino gambling. Despite operating in states where online gambling is banned, the sweepstakes model avoids classification as gambling under current laws, creating enforcement challenges. Lawmakers in states like New York, Maryland, and Michigan are pushing to ban these operators, citing billions in untaxed revenue and concerns over consumer protection. However, enforcement remains difficult without clear regulatory authority or new legislation, prompting comparisons to Uber’s early disruption of taxi regulations.
Michigan Orders 10 More Unregulated Online Casinos to Cease Operations
The Michigan Gaming Control Board ordered ten offshore online casinos—including Aladdin’s Gold, All Star Slots, and Lucky Red Casino—to cease operations for violating state gaming laws and providing poor consumer protections. The MGCB cited deceptive withdrawal conditions, including wagering requirements before payouts. The operators have two weeks to halt activity or face felony charges, including up to 10 years in prison and $100,000 fines. MGCB Executive Director Henry Williams emphasized the agency’s commitment to protecting Michigan’s legal gaming market and ensuring consumer trust.
Florida Bill Aims to Block Revolving Door After Regulator Joins FanDuel
A new Florida House bill aims to close a loophole that allowed Louis Trombetta, former executive director of the Florida Gaming Control Commission, to become a lobbyist for FanDuel shortly after leaving office. Trombetta previously issued cease-and-desist letters to smaller fantasy operators like PrizePicks and Underdog while not taking similar action against FanDuel or DraftKings. HB 1467 would impose a two-year cooling-off period for regulators before they could work for fantasy sports companies. Critics view Trombetta’s career move as a potential conflict of interest, highlighting broader concerns over regulatory capture and enforcement inconsistency within the rapidly evolving fantasy and sports betting industry.
Nevada Bill Targets Illegal Online Gambling with Harsher Penalties
Nevada lawmakers are advancing SB256, a bill sponsored by Sen. Rochelle Nguyen that would significantly increase penalties for illegal online gambling operators targeting state residents. The proposed legislation seeks to convert some violations into gross misdemeanors, require the disgorgement of profits, and bolster Nevada’s deterrent efforts. The bill has received support from the Nevada Resort Association, AGA, AGEM, and others, with advocates citing the need to protect consumers, uphold regulated markets, and prevent revenue loss to offshore platforms. Industry leaders emphasize that enforcement is vital, especially as Nevada resists legalizing online casinos to preserve its land-based operations.
The Full Story Here.
Massachusetts Probes Robinhood Over March Madness Betting Contracts
Massachusetts Secretary of State Bill Galvin has subpoenaed Robinhood over concerns that its new prediction-markets hub, launched just as the NCAA basketball tournaments began, may improperly link gambling-style event contracts to brokerage accounts. Galvin criticized the move as a “gimmick” targeting young users, and requested data on state residents trading these contracts and related internal communications. Robinhood maintains that the contracts are legal under CFTC oversight and offered through KalshiEX, a registered platform. This marks another confrontation between Galvin’s office and Robinhood, following prior enforcement actions over “gamification” tactics.
Click here to read our latest blog post: Efficient Market Hypothesis in Sports Betting
