Banned in the U.S.A.
New Jersey passes anti-sweeps bill, Underdog takes fight to Cali AG
The regulatory moves against sweepstakes gather momentum.
Underdog sues the California AG over ‘Illegal’ DFS opinion.
Firing Pistons: NBA star wire fraud probe.
Texas ends courier lottery services and dismantles Lottery Commission.
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Anti-sweeps momentum
Nasty as they wanna be: Lawmakers and regulators are escalating efforts to shut down sweepstakes casinos and proxy betting platforms amid mounting concerns over legality and consumer risk.
White-collar people trying to grab our style: New Jersey lawmakers have passed Assembly Bill 5447, which would ban dual-currency sweepstakes and criminalize proxy betting, with strong bipartisan support in both houses.
If signed by Governor Phil Murphy, it would make New Jersey the sixth state to pass such a ban.
Montana and Connecticut passed bills into law, although Louisiana’s governor vetoed legislation; New York and Nevada are still pending gubernatorial sign-off.
The Garden State bill defines sweepstakes broadly and includes stiff penalties of $100,000 for a first offense, $250,000 for repeats, and $25,000 per ignored cease-and-desist order.
Proxy betting involving $1,000 or more and a 10% cut for the facilitator would be a disorderly persons offense.
People on our side who won’t take your lip: New Jersey reps say the bill protects consumers, but opponents claim it’s a protectionist play “to appease entrenched casino interests.”
The Social and Promotional Games Association (SPGA), which represents operators, urged a veto, arguing that platforms using sweepstakes models are already legal, safe and widely used.
SPGA said the bill contradicts earlier regulatory frameworks focused on licensing and oversight, not outright prohibition.
It called the legislative push “misguided” and claimed it jeopardises innovation and New Jersey’s tech-friendly image.
“Governor Murphy has an opportunity to do what the Legislature would not – listen to facts, not fear,” the SPGA said.
Like flies: Upping its blitz against operators is the Arizona Department of Gaming (ADG), which last week issued seven cease-and-desist letters targeting Stake.us, BettorEdge, and peer-to-peer and raffle-based sites such as Novig and Fanthem.
The ADG cited violations including money laundering, illegal control of an enterprise and gambling promotion.
The enforcement is Arizona’s second push, following similar actions in April and a December 2024 warning to Bovada.
“Illegal gambling robs our state’s economy and puts consumers at risk,” said ADG director Jackie Johnson.
The show in Hollywood: A broad California bill (AB 831) targeting online sweepstakes casinos is set for its first major hearing before the Senate Governmental Organization Committee on July 8. The measures would impose criminal penalties on operators, suppliers, promoters and affiliates of illegal sweepstakes platforms.
Critics have said the legislation amounts to a stitch-up between Golden State tribes and local politicos.
Influential chair of the Indian Gaming Association, Victor Rocha, said he may take in the hearing as the tribes fight on multiple fronts against sweeps, prediction markets and daily fantasy operators seeking a foothold in California.
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Breaking: ’Dog enters the fight
’Dog of war: DFS-plus operator Underdog has preemptively filed a motion on the Sacramento County Superior Court in a bid to block the state Attorney General Rob Bonta from “decimating” the fantasy sports sector and releasing the reported forthcoming opinion on daily fantasy.
Off the leash: The company has also filed a separate motion asking the Superior Court for an immediate ex parte temporary restraining order, which would prohibit Bonta from issuing his “unlawful” opinion addressing the legality of fantasy sports under California law.
Recall, last week it was widely reported that Bonta was ready to issue a legal opinion that all online fantasy sports games within the state are illegal.
Muscle breach: Underdog said in the filing that 10% of its revenues are derived from California-based players. “The request seeks a preenforcement shot across the bow – a flexing of executive branch muscle in a way that is designed to impair the businesses of Underdog and others in the fantasy sports industry,” the brief stated.
The brief added Underdog also attested that representatives from the company have spoken with the AG’s office on multiple occasions.
The company said it had been informed the opinion was forthcoming and would take a very negative stance towards the industry.
In a statement, Underdog said the AG opinion would “decimate fantasy sports in California,” adding that, by statute, the AG can “only issue opinions on questions of law and can only answer questions that relate to the duties of the official requesting the opinion.”
You have no authority: “Neither is true here,” the statement continued. “Thus, Attorney General Bonta lacks authority to issue the opinion and should be enjoined from doing so.”
Beasley probe
Trouble man: Detroit Pistons guard Malik Beasley is under federal investigation for alleged gambling activity related to NBA games and prop bets during the 2023-24 season, multiple sources told ESPN.
The alleged betting occurred while Beasley was playing for the Milwaukee Bucks.
Sources said at least one major sportsbook detected unusual betting on Beasley’s prop markets starting in January 2024.
Don’t look any further: Beasley, 28, has not been charged and continues to deny wrongdoing. However, the investigation is likely to disrupt both his own free agency and give the NBA an unwanted publicity headache following the recent draft.
“An investigation is not a charge,” Beasley’s attorney Steve Haney said, confirming he has spoken with prosecutors in the Eastern District of New York.
The wire fraud probe stretches back 18 months and isn’t entirely focused on Beasley, his lawyer added.
A Pistons spokesperson said the team was aware of the investigation and referred questions to the NBA, which said it was “cooperating” with the feds.
Ain't that peculiar: Beasley’s case marks the third known federal gambling investigation involving an NBA player in just over a year.
Former Toronto Raptors forward Jontay Porter was banned for life last year after a league probe found he bet against his own team games and leaked inside info to illegal syndicates.
Miami Heat guard Terry Rozier is also under investigation for betting anomalies linked to a 2023 Hornets game, though he hasn’t been charged or sanctioned.
Collegiate betting has faced increasing scrutiny nationwide, with states such as Ohio, Maryland and Louisiana enacting bans in 2024 amid concerns over athlete harassment and integrity risks.
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Norway: Norsk Tipping’s CEO Tonje Sagstuen has resigned after a scandal involving lottery players being mistakenly told they had won life-changing amounts of money. Sagstuen stepped down at the weekend following an emergency meeting with the Norwegian Ministry of Culture. A system glitch led to Eurojackpot winners’ totals being incorrectly converted from euro cents to Norwegian kroner, leading to customers thinking they had won much higher sums than they had in reality.
Thailand: The parliamentary debate about the Entertainment Complex bill will be delayed by at least a month, with ruling party minister Danuporn Punnakanta saying a comprehensive review would be held to gather diverse feedback, particularly regarding gambling access for Thais and potential money laundering concerns. This comes against a worsening backdrop for the ruling party of PM Paetongtarn Shinawatra, who faced demonstrations at the weekend calling for her resignation.
Denmark: The gaming regulator has received the go-ahead from a Danish court to block 178 offshore sites and is now able to mandate the Danish telecom providers to restrict access.
New Zealand: The amended Racing Industry Act came into force late last week, effectively outlawing offshore operators directed into the country for the first time ahead of the partial opening up of the iCasino market next year. The OSB market will remain as a monopoly given to the Entain-operated New Zealand TAB.
Rust sleeps: Nick Rust, chair of the Industry Forum, and former British Horseracing Authority CEO, will step down at the end of November. Rust was appointed for a two-year tenure back in November 2023. He said he believed the forum had “helped the UK Gambling Commission better understand the implications of its existing and planned policies for consumers and industry operators.” Andrew Rhodes, UKGC CEO, said Rust had been a “valuable sounding board.”
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Deep in the heart
… of Texas: Governor Greg Abbott has signed into law sweeping reforms of the Texas Lottery, including the banning of lottery couriers and the abolition of the Texas Lottery Commission – but he has given a stay of execution for the lottery itself, until at least 2029.
Brass in pocket: Key changes will become effective in September and will mean the purchase of lottery tickets via third-party courier apps such as the DraftKings-owned Jackpocket or other online platforms will become a Class A misdemeanor, punishable by up to one year in jail and fines up to $4,000,
Too didn’t; long read: Meanwhile, the Lottery Commission, which has overseen games since 1992, will be dissolved. Regulatory authority and oversight of retail, scratch-off, and draw games will transfer to the Texas Department of Licensing and Regulation (TDLR).
Sunset beach: Lastly, Abbot has determined that the Lottery will be extended through 2029, at which point the Sunset Advisory Commission must review its viability and recommend whether to renew or end the program.
Shenanigans: The reforms were a response to two related controversies. In 2023 an offshore syndicate purchased 99% of all possible Lotto Texas combinations, securing a $95m jackpot, raising concerns over potential exploitation and laundering.
Second, the rise of courier services such as Jackpocket, which processed lottery transactions through owned storefronts, bypassed face-to-face buying and accounted for over $200m in annual sales.
Lt. Governor Dan Patrick and Sen. Bob Hall argued these services undermined the law’s intent and enabled bulk purchases.
Calendar
Jul 1: Technology in Gaming, London
Jul 14-16: OIGA, Oklahoma City
July 19: National Council of Legislators from Gaming States Summer Meeting, Kentucky
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