Going nuclear
VGW now faces a class action RICO suit in New York
The sweepstakes operator feels the heat alongside Google and Apple.
In +More: Resorts World given more time by Nevada.
The World Health Organization calls for gambling crackdown.
New South Wales makes controversial cashless recommendation.
The walls that hold me are melting down.
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Getting nasty
Shakedown: Sweepstakes heavyweight VGW is facing racketeering and organized crime charges in a federal court in a case that also accuses Google and Apple of allowing illegal gambling.
A RICO Act class action lawsuit, famed for busting mob operations, was filed by a group of plaintiffs in Manhattan.
Gambling attorney Dan Wallach noted it is the first sweepstakes casino lawsuit filed in New York State, another landmark in the mounting pile of cases building against sweeps operators.
VGW’s lawyers have been busy in recent months, but the New York action is the first civil RICO lawsuit and a more serious matter to address with potentially billions of dollars and criminal charges at stake.
“New York is an especially vulnerable jurisdiction for sweepstakes casino operators because it has a constitutional ban against non-voter-approved casino gambling and a very low threshold for what constitutes illegal gambling under state law,” Wallach said.
“A disgorgement or restitution remedy would be in the hundreds of millions and potentially trebled under RICO.”
Here come the heavies: The case may also catch the eye of the New York attorney general, who has civil enforcement powers to go to bat for aggrieved residents and claw back ill-gotten gains.
The AG’s office has targeted internet gaming companies with the provision on two prior occasions, Wallach noted; in 1999 against World Interactive Gaming, and in 2015 against two daily fantasy sports companies.
“The New York AG prevailed in both cases, securing a permanent injunction against World Interactive Gaming, as well as an order of restitution against WIG and its principals, officers and directors,” Wallach said.
You make it happen: A separate RICO lawsuit filed in New Jersey against four sweepstakes casino operators also includes Google and Apple for allegedly supporting illegal gambling.
The tech giants are accused of pocketing proceeds from illegal gambling accessed via their mobile stores.
The suit claims High 5 Casino, Wow Vegas, CrownCoins Casino and McLuck all violated federal organized crime laws.
Drum beat: Opposition to sweeps from traditional corners of the gambling sector has grown louder in recent months, with large industry trade bodies and tribal leaders indicating they view social casino and poker as predominantly unregulated.
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+More
Resorts World Las Vegas has received an extension from the Nevada Gaming Control Board to give it time to respond to the regulator’s complaint claiming the casino damaged the reputation of the industry.
According to the Las Vegas Review-Journal, Resorts World now has until this coming Monday, December 9, to answer the complaint.
The complaint revolves around allegations that the resort allowed people with ties to illegal bookmaking operations and organized crime to gamble millions over several months at its casino.
The investigation into the casino found Resorts World failed to comply with state gaming commission rules as well as its own anti-money laundering program.
Malaysia’s communications minister has tabled legislation that groups online gambling with cyberbullying and sexual crimes against children, as part of an effort to tackle criminal activity.
It would be the first update to the country’s main communications and multimedia law for 26 years.
The bill seeks to expand the enforcement powers of the regulator and its supervisory framework, giving it the legal means to target illegal online operators.
Mexico: A key congressional ally of President Claudia Sheinbaum has said the new administration will soon submit a bill to reform Mexico’s law that governs gambling, which has not been changed since 1947.
Betsson’s BML Group subsidiary has been added to the updated Finnish National Police Board’s payments blacklist, according to a post on LinkedIn by Finnish gaming lawyer Antti Koivula.
The case dates back to 2023, when BLM was suspected to have illegally targeted Finnish players via marketing and advertising campaigns.
BLM appealed its blacklist selection in February but lost its appeal and will stay blacklisted until October 19, 2025.
All payments between the brand and players will be prohibited.
You’ve got mail: Bovada has received a cease-and-desist letter from the Arizona Department of Gaming, the 16th US state to say the company is operating illegal gaming.
Denmark: The first seven gaming suppliers have been awarded licenses ahead of the country’s updated regulatory structure that begins January 1. The list includes bet365, Elk Studios, Novomatic’s Greentube, Thunderkick, Magnet Gaming, SkillOnNet and Prima Networks.
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WHO diss
How many friends: The World Health Organization (WHO) has called for a global crackdown on gambling advertising and promotions after claiming 1.2% of the planet’s population has a problem.
The number is in a new factsheet from the health arm of the United Nations, which said the “rapid normalization of gambling” and “aggressive promotion” is behind a spike in player harm.
The agency said advances in technology, smartphones and the soaring popularity of sports betting were magnifying problems.
In calling on governments to act, researchers said the focus should be on “reducing stigma and shame related to gambling, ending advertising and promotion, and… other upstream efforts to prevent and reduce gambling harm.”
A confederacy of doctors: The agency is gathering a “group of global experts” to address public health implications and formulate policy approaches.
It is targeting countries where gambling use is on the increase, but regulations have not evolved in lockstep.
It said in regulated markets a different set of problems appear, where the largest operators are effectively able to manipulate governments who have become accustomed to the generous tax revenue the industry generates.
Corporate political activity is “widespread and effective in protecting the interests of these businesses,” it said.
“Prevention is the most cost-effective strategy for minimizing gambling-related harm.”
Won’t get fooled again: Sector experts are unconvinced by the WHO’s thinking, with Dan Waugh of Regulus Partners noting the overlap of the agency, its personnel and its views with The Lancet Public Health journal, which has made the same arguments.
“It seems a little contrived and orchestrated to me,” Waugh told C+M. “The WHO statement raises a number of legitimate concerns but it is also hopelessly imbalanced and its use of evidence is patchy. This appears to be more about activism and ideology than anything else.”
In this state-by-state guide, Vixio has outlined the regulatory landscape for sweepstakes.
Discover the state of sweepstakes across the U.S. and the emerging trends, empowering you to minimize the risk of non-compliance.
Download your copy of the U.S. Sweepstakes Guide here.
Cashless Oz call
Forgot your wallet? A report looking into how player safety can be improved in New South Wales, from the Independent Panel for Gaming Reform, has recommended full cashless gaming as well as lower license fees for operators and a statewide self-exclusion scheme utilizing mandatory facial recognition software.
The panel oversaw a cashless gaming trial, including mandating certain requirements to participate in it and recommending an appropriate mix of venues for the trial, which took place between March and September 2024.
Limited use: However, somewhat controversially, the report claimed the trial had been a success despite only 14 of the 243 people who initially signed up being "genuine and active users that had used the technology for at least two or more days.”
The report concluded, though, that this “reluctance from patrons to engage with the technology” meant the state government should implement a mandatory statewide account-based gaming system by 2028 with patrons still able to use a limited amount of cash.
The state government dedicated A$3.4m ($2.2m) to fund the trial and its evaluation.
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