Dangerous games
New York throws the book at sweepstakes operators
NY Attorney General issues cease-and-desist letters to 26 sweeps operators.
In +More: Louisiana raises sports-betting tax.
Prediction market legal tussles intensify.
Star faces existential threat from AUSTRAC charges.
Thai opposition slams casino legalisation push.
Your biggest tech problems. Solved.
Fincore delivers technical solutions for the Gaming industry. For over 25 years we’ve helped clients modernise legacy platforms, unblock roadmaps, integrate complex systems, and apply AI to real-world problems. We’ll help you shape the right strategy, and then we’ll roll up our sleeves and deliver it.
Our edge? A world class team with deep domain knowledge, armed with our highly customisable IP toolkit that adapts to your architecture, whether modernising legacy or starting from scratch. That means faster delivery, smoother integration and less risk.
Health warning
Dangerous to know: New York Attorney General Letitia James, in collaboration with the New York State Gaming Commission (NYSGC), has issued cease-and-desist letters to 26 online sweepstakes gaming operators in the state.
“Online sweepstakes casinos are illegal, dangerous and can seriously ruin people’s finances,” said James.
“These so-called ‘sweepstakes’ games are unscrupulous, unsecure and unlawful,” added NYSGC chair Brian O’Dwyer.
Blanket protest: The Social and Promotional Games Association (SPGA) hit back at the move, saying it was “disappointing to see a blanket enforcement action taken without meaningful dialog or effort to distinguish between compliant companies and truly illegal operators.”
Ramping up the rhetoric: The AG co-opted politicians into the debate, with Assemblywoman Carrie Woerner saying “these online sweepstakes games can serve as the on-ramp to problem gambling for teenagers, particularly.”
Senator Joseph Addabbo said sweepstakes were providing “dangerous pathways for gambling addiction, especially among minors.”
“This is not about taking away anyone’s livelihood, it's about protecting New Yorkers and working toward a safer, regulated online gaming environment for age-appropriate individuals.”
Who’s on the list? The 26 names provide something of a who’s who among sweepstakes operators and include VGW’s Chumba, Luckyland and Global Poker, as well as High 5 Casino, which was recently the subject of an action in Connecticut, and Fliff.
Regulatory gap: While enforcement takes immediate effect, there are active legislative efforts (e.g. Senate Bill 5935, Assembly Bill 6745) aiming to criminalize sweepstakes-style casinos openly. However, these bills are nearing the June 12, 2025 session deadline.
Not playing by the rules: The SPGA said sweepstakes promotions are “not gambling under federal law and are legally permitted in the overwhelming majority of US states, including New York.”
“Despite multiple attempts to engage directly with New York lawmakers and regulators, our outreach has gone ignored,” the organization added.
“Instead of working collaboratively to establish clear, modern rules for platforms that offer free-to-play games and do not require a purchase to win, the state has opted for overreach.”
The SPGA argued the official approach “stifles innovation, limits consumer choice and disregards the legal status of sweepstakes promotions.”
GuardDog, powered by Underdog, is a pioneering investment fund dedicated to fostering innovation in responsible gaming.
GuardDog supports and accelerates early-stage startups focused on building new and creative solutions to address problem gaming and further responsible gaming.
Ready to be one of the underdogs of responsible gaming?
Visit to apply: https://underdogfantasy.com/guarddog
+More
Conn. job: Staying with sweepstakes, the bill to ban the product in Connecticut has been passed by the state House and is heading to the Governor’s desk for signature. SB 1235 no longer includes an online lottery courier ban after the Senate removed it through an amendment.
Louisiana: The proposed increase in the state’s sports-betting tax from 15% to 21.5% has been passed by the state House and the Senate, and now also awaits the signature of the Governor.
Rhode Island: The bill to open up the state’s sports-betting market to more competition has received approval from the state Senate. The bill would end IGT’s monopoly in 2026 when the current contract comes to an end.
Oz self-exclusion failures: The Australian Communications and Media Authority has found Buddybet, Ultrabet, VicBet and Topbet in breach of rules relating to self-exclusion. The sites were all found to have failed to uphold standards relating to customers registered with BetStop, Australia’s national self-exclusion register.
Tilman Fertitta’s suitability as a shareholder at Wynn Resorts will be assessed by the Nevada Gaming Control Board at a meeting to be held tomorrow, June 11. Investors who own more than 5% of any casino operator in Nevada must gain clearance from the Nevada gaming authorities. Recall, Fertitta currently owns 13% of Wynn and is the largest single shareholder. He was recently appointed as the US ambassador to Italy and his lawyer said he was not considering a full bid for the company.
bet365 has joined the Sports Betting Alliance, which currently includes FanDuel, DraftKings, BetMGM and Fanatics Sportsbook, becoming the first new member of the SBA since it was formed in 2021.
Melco Resorts, SJM and Galaxy have each said they will shut down their satellite casinos operations. The decisions came ahead of a regulatory update that requires direct ownership of satellite casinos and also brings to an end revenue-share agreements. SJM said it would close seven of its nine satellite casinos while taking full control of two of them.
Predictable legal tussle
The show must go on: A federal judge has allowed Kalshi’s lawsuit against Nevada’s regulators to proceed, upholding the platform’s challenge to a cease-and-desist order targeting its sports-based contracts.
Kalshi argues its business is regulated under Commodity Futures Trading Commission (CFTC) jurisdiction, giving it the right to operate in any state.
The court also approved the Nevada Resort Association’s intervention in the case, citing risks to the local gaming sector.
Kalshi currently holds an injunction allowing it to operate while the case proceeds.
Ain’t no stoppin’ us now: Kalshi has also taken the fight to New Jersey and Maryland, where additional cease-and-desist orders have been issued.
It has won a partial victory in New Jersey, but the Old Line State could prove trickier ground.
Last week, a Maryland federal judge pushed back on whether the CFTC has the authority to override state law and questioned Kalshi’s shifting arguments.
Unusual occurrences in the desert: Legal experts said the tussle is likely to set a national precedent for how states treat federally regulated event-based trading platforms. “The outcome of this fight could bring ‘seismic changes’ far beyond the Nevada desert,” said veteran Vegas bookie Robert Walker.
He said Kalshi’s argument was “a brilliant and aggressive move to exploit regulatory arbitrage.”
“They are attempting to redefine an entire industry by changing the language and the business model, pitting federal CFTC oversight against state-by-state gaming commissions,” he added.
Strong words: “Kalshi’s lawyers got some hard questions in Maryland – the preliminary injunction fight there isn’t playing out like it did in Nevada or New Jersey,” said Andrew Kim, gambling partner at law firm Goodwin.
Whilst Kalshi has “tried to duck” some jabs, the prediction market maker has finally run into an unfriendly court and a judge unwilling to let much slide, Kim said.
Come and join us: Meanwhile, Crypto.com has filed a similar suit against Nevada after receiving its own cease-and-desist.
The company’s lawsuit echoes Kalshi’s core argument that prediction markets are not sports betting under state law.
It wants a permanent injunction to continue offering prediction markets in the state.
Increase Operator Margins with EDGE Boost Today!
EDGE Boost is the first dedicated bank account for bettors.
Increase Cash Access: On/Offline with $250k/day debit limits
No Integration or Costs: Compatible today with all operators via VISA debit rails
Incremental Non-Gaming Revenue: Up to 1% operator rebate on transactions
Lower Costs: Increase debit throughput to reduce costs against ACH/Wallets
Eliminate Chargebacks and Disputes
Eliminate Debit Declines
Built-in Responsible Gaming tools
To learn more, contact Matthew Cullen, chief strategy officer on Matthew@edgemarkets.io
Star collapse
Penalty box: Star Entertainment is facing a legal showdown with AUSTRAC, the country’s financial crime regulator, which is seeking a A$400m (~$260m) penalty for alleged AML and counter‑terrorism financing breaches dating back to 2021.
Simon White SC, acting for AUSTRAC, said A$400m would not be an “oppressive penalty” for the casino business given the extent of Star’s behaviour over multiple years.
“It’s an appropriate penalty for specific and general deterrence purposes,” White added.
In return, Star flagged that a A$100m fine could threaten its financial viability.
Union ’city blues: AUSTRAC alleges Star facilitated schemes where Chinese high-rollers moved funds via fictitious hotel stays using China UnionPay cards, thus masking casino gambling to evade capital controls.
The regulator claims Star’s senior management “deliberately courted risk,” ignoring red flags, especially around Salon 95, a VIP gaming room run by junket operator Suncity, where billions were suspected to flow through unchecked.
AUSTRAC alleged that Star only stopped dealing with Suncity when its CEO Alvin Chau was arrested in 2021 in Macau.
Dead set on destruction: The proposed A$400m fine could wipe out Star, with the company warning that even a A$100m penalty might threaten its viability.
The company earlier this year already narrowly avoided administration, and signed a deal with Bally’s and the Mathieson family in April that saw A$300m injected into the business.
Entain Australia update
Nothing to see here: Entain Australia CEO Dean Shannon will be stepping down from his position on June 30 after five years, citing operational changes in the company. Andrew Vouris has been appointed interim CEO.
Recall, Entain in Australia is also subject to an AUSTRAC inquiry over what the enforcement body claims was “serious and systemic” compliance failures over many years.
Thai casino criticism
Flaw space: Parit Wacharasindhu, opposition MP and spokesman for the People’s Party, has strongly criticised the Thai government’s draft bill to legalise casinos, arguing it lacks transparency, sound economic grounding and protections against social harm.
Parit posted on Facebook following his appearance on a panel hosted by Inside Asian Gaming, outlining his opposition to the draft “entertainment complex” bill.
Let’s be realistic here: Parit said the government’s claim of economic benefits is based on speculative assumptions, not solid data. “The studies are not clear or comprehensive enough,” he wrote.
He questioned whether expected tourism boosts, especially from China, were realistic, given potential regulatory pushback from Chinese authorities on outbound gambling.
The draft bill offers no concrete protections against well-known risks such as corruption, money laundering, organised crime and gambling addiction, Parit warned.
The government’s unclear communication and shifting policy narratives have undermined public confidence, he added.
The numbers don’t add up: Parit criticised estimates from private sector actors that Thailand could raise up to THB50bn ($1.5bn) in annual tax revenue, based on the idea that 80% of casino players would be Thai who would collectively gamble 21 million times per year with each visiting a casino three times annually.
He noted this forecast is incompatible with the government’s own eligibility restriction: gamblers must have had at least THB50m in bank deposits for the previous six months, a threshold fewer than 10,000 Thais actually meet.
“The government chose to insert the 50-million-baht deposit requirement clause in the draft act to soften the opposition,” he said.
“Deep down, its intention is to allow a significant number of Thais to enter the casinos and gamble.”
In the balance: Parit called for a balanced policy that fosters healthy competition, attracts investment and ensures Thais – not just casino operators – benefit from any legalisation.
The government said an entertainment complex featuring a casino would still be an economic growth engine, with the Finance Ministry projecting it would drive a 0.8% increase in GDP.
Calendar
Jun 9-12: IAGA, Berlin
Jun 10-11: European regulation and compliance track at SBC Malta.
Jun 19: Player protection symposium, CGS Toronto
Jun 26: Gaming in Spain, Madrid
Player Protection, Not Player Prevention
Safer gambling is now a major focus for operators and investors, vital for industry sustainability. Mindway AI’s award-winning software uses neuroscience, AI, and expert assessments to exceed player protection requirements. GameScanner offers automated, early detection of at-risk gambling, allowing timely intervention. Make your player base safer and your business more sustainable and investible.
Learn more at mindway.ai
An +More Media publication.
For sponsorship inquiries email scott@andmore.media.
