Stop that
Nevada comes for Kalshi
The regulator sends a cease-and-desist letter to the predictions operator.
In +More: DraftKings new lottery blow, Austria monopoly to continue.
More states line up to ban sweeps.
YouTube’s gambling stream clampdown.
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Get out
We can’t predict the future: Nevada’s gambling regulator has kicked Kalshi out of the state, claiming “event-based contracts” on sports and elections “is unlawful” without a license.
Extinction event: The Nevada Gaming Control Board (NGCB) issued a cease-and-desist letter giving the trading exchange until March 14 to halt all sports and election-related markets or face civil and criminal penalties.
NGCB chair Kirk Hendrick warned that any unlicensed attempt to offer sports betting in Nevada would not be tolerated.
The exchange was offering markets on the NBA, March Madness and Champions League futures as of Wednesday.
The firm’s founder Tarek Mansour said he was “disappointed” but the firm had met every federal obligation and would “keep paving the way for regulated prediction markets to thrive in the US.”
I can do it right: Kalshi is regulated by the Commodity Futures Trading Commission (CFTC) and won a legal battle against the agency to launch election betting markets.
The platform then expanded into sports and Super Bowl markets, prompting scrutiny from both state and federal regulators.
The CFTC previously urged Robinhood to block Kalshi sports markets, a request the trading app later complied with.
When Crypto.com tried to launch Super Bowl betting, the CFTC requested a pause pending regulatory review.
The above occurred prior to Donald Trump’s nomination of Kalshi board member Brian Quintenz to lead the CFTC.
While you were sleeping: Industry noise around the issue is growing, with senior figures lobbying the derivatives regulator to take another look, including American Gaming Association CEO Bill Miller billing prediction markets a “backdoor for national sports betting.”
In a Sports Business Journal op-ed, Miller warned that allowing these markets undermines state gaming authority and tribal sovereignty.
It also sidesteps responsible gaming safeguards and threatens the economic stability of the regulated industry, he said, noting compliance risks surrounding interstate wagering and the Wire Act.
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+More
DraftKings’ new lottery blow: The DraftKings-owned lottery courier operation Jackpocket has been forced to shutter operations in New Mexico, its second state exit following Texas at the end of February, after the state Department of Justice found in a legal opinion that the company was selling lottery tickets for a profit without explicit authorisation from the state’s lottery authority.
Separately, DraftKings has announced it is reinforcing its commitment to responsible gaming through a series of initiatives and key milestones, including the renewal of its State Council Funding Program to further support nationwide resources and launching a national RG-focused advertising campaign to raise awareness for responsible play.
Ireland finally has a new gambling regulator after the Gambling Regulatory Authority was officially tasked yesterday, March 5, with overseeing the new Gambling Regulation Act 2024. The GRA was passed by the Irish parliament last October.
The newly elected coalition government in Austria has promised to maintain the country’s gambling monopoly status, with Austrian Lotteries keeping the only online gaming license in the country. The new coalition proposed renewing the license for 15 years when it expires in 2027. Gaming taxes will also rise from 2% to 5% as part of proposed changes to the regulations. An independent gaming regulator is also expected to be formed.
Italy: The removal of the ban on gambling operator sponsorship of soccer clubs is one of the measures being considered by the Senate Culture Committee as part of its discussions for the reform of Italian soccer. A vote on the proposal is expected this week.
Integrity: The International Betting Integrity Association has welcomed Hard Rock Digital as its latest integrity partner focused on the US market. Hard Rock Bet will now take an active role in contributing to the IBIA’s betting integrity network with data feeds that will monitor for and flag potential sports-betting threats.
State-by-state
Georgia: A pair of sports-betting bills in the state House Higher Education Committee have until March 6 to cross over to the Senate. HB 686 and HR 450 would permit sports betting in Georgia with a 20% tax on adj. GGR. HB 686 creates a regulatory framework for online sports betting under the Georgia Lottery while HR 450 amends the state constitution to allow for sports betting. The bill would allow for a total 16 licenses, with seven standalone and nine connected to major sports organizations in the state.
Hawaii: The state house this week took the unprecedented step of passing a controversial measure to legalize OSB. The 35-15 vote on House Bill 1308 is the closest the legislature has come to actually passing sports-betting legislation since 2018. Recall, the Hawaii Senate has already killed an OSB bill this session.
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More sweeps moves
No sweeps for you: New York state Sen. Joseph Addabbo has introduced legislation to explicitly ban online sweepstakes casinos and sportsbooks in the Big Apple, as Maryland follows a similar regulatory path.
Filed on Tuesday, New York Senate Bill S5935 provides a legal definition of online sweepstakes, targeting dual-currency systems that allow players to exchange tokens for prizes or cash equivalents in free-to-play games.
In a statement, Addabbo said the bill aims to “close this loophole”, aligning New York with Michigan, Idaho and Washington, where sweepstakes casinos are banned.
Operators in breach of the new law could be kicked out of the state or be banned from holding a license in future.
Free state of jokes: On Wednesday, Maryland’s Budget and Taxation Committee was presented with Senate Bill 860, proposing a total ban on sweepstakes casinos.
The state is already hostile to social casinos, with the Maryland Lottery and Gaming Control Agency sending myriad cease-and-desist letters to those suspected of breaking gambling laws.
Operators and suppliers would be criminally liable should SB 860 become law.
Not getting it: The Social and Promotional Games Association (SPGA), which represents sweeps operators, lambasted both efforts for a lack of understanding of the legal gaming model.
Lawmakers, the association argued, have been spooked by pressure from land-based casino stalwarts threatened by the fledgling sector.
Citing recent research from Eilers & Krejcik Gaming, the SPGA pointed to findings that social casinos with sweepstakes prizes don’t directly compete with traditional real-money online casinos.
The association also threatened to sic the Swifties on Addabbo’s City Hall, noting the proposals would make the sweepstakes promotions used by Marriott to give away packages for Taylor Swift’s Eras Tour illegal.
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YouTube clampdown
Now you see me, now you don’t: YouTube is the latest streaming platform to clamp down on gambling-related content. Here’s what is set to change on the site:
Videos will no longer be allowed to direct viewers to gambling sites or applications that are not certified by Google.
This includes URLs, links embedded in images or text, visual displays (including logos) or verbal references.
Content promising ‘guaranteed returns’ could be removed regardless of whether or not the site has been approved by Google.
Content that features depictions or promotions of online casino sites or apps but are not in breach of community guidelines may still be age-restricted, meaning users under 18 or not signed-in will not be able to watch the video.
Impact zone: The Google-owned company emphasised the update “may impact creators who focus on online gambling content like casino games and applications, but believe these changes are a necessary step in protecting our community, especially younger viewers.”
Gamba, Daddy: The impact will most be felt by gray-market operators and crypto casinos. For example, Stake.com, which has fuelled its monumental growth through using influencers on streaming platforms such as Twitch, YouTube and Kick, a platform that shares ownership with Stake,
Compilations of streamers winning extremely high jackpots will now fall foul of the new rules.
Big Tech – the real regulator? As regulators struggle to get to grips with increased digitalisation of gambling, streaming, video games and crypto, YouTube is the latest tech giant to turn quasi-regulator after community pressure.
YouTube banned gambling ads in the masthead advertising slot in 2021.
Amazon-owned Twitch has undergone multiple rule changes to make casino streaming less viable.
After the Twitch changes, Stake launched Kick, which is now the go-to destination for casino streamers.
A significant portion of video viewership will come from places such as Curaçao or similarly offshore-licensed operators are not permitted. The change will achieve the platform’s aims if it’s effectively policed – but if there’s one thing these operators are good at, it’s circumventing rules with ease.
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