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PASPA – Five years on – did any initial predictions come true or not?

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With the fifth anniversary of the PASPA repeal on May 14th, we caught up with Compliable’s Chief Regulatory Officer, Justin Stempeck, who examines what was predicted in May 2018 and how accurate those initial guesses have proved to be.

“National regulation on sports betting”

When PASPA was overturned, the Supreme Court explicitly placed the power to regulate gaming in the hands of the states. It would be extraordinarily unlikely for our highest court to conclude that betting is not a federal issue, then have legislators introduce another national law, yet there were calls for this strategy from numerous stakeholders in 2018.

While the different approaches of each state were less than ideal, the industry was able to adapt and continue to advance in each new jurisdiction that has legalized.

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Despite the ‘patchwork quilt’ aspect of regulation there are far more commonalities than differences. Regulators have made some efforts to avoid reinventing the wheel, but it would be great to see wider momentum. As a former regulator, I understand that each state has its own unique pressures and competing interests to juggle, but ultimately, a push towards uniformity will be a success for everyone in the absence of national regulation of the sector.

“National Collegiate Athletic Association’s sports integrity concerns”

Betting on collegiate sports has always occurred but it took place offshore and in illegal markets before the repeal of PASPA. The expansion of sports betting includes official regulation, taxation and supervision of the activity, which can only be a good thing. A number of regulated entities are now actively ensuring there are no discrepancies in game performance and there is a vested interest in guaranteeing that everything is above board. With some states today allowing betting on collegiate sports, people have become more comfortable with the idea.

The NCAA continues to officially oppose sports betting, yet appointed former Massachusetts governor, Charlie Baker as its president this past March. Notably, Governor Baker was a proponent of legalized sports betting in Massachusetts and ultimately signed it into law.  The combination of a sports betting friendly president and a lack of major integrity scandals since legalization may shift their official stance in the future.

“Increased risk of match-fixing”

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As of yet, there have been no high-profile match-fixing scandals despite the existential threat and this is in large a testament to the leagues’ enforcement of its own integrity as well as the plethora of third-party monitoring services now available.

A match-fixing scandal would have a significant impact on the industry as a lot of bettors would likely be lost due to a lack of trust. With sports, the thrill and excitement lie in the possibility that anything can happen and underdogs can become winners, if that narrative is shown to be fiction, the reputational damage would be sizeable. The ripple effect of such an event would carry on for years as critics of sports betting could use a match-fixing scandal to argue against legalization.

“Responsible Gambling – a negative impact”

The expansion of betting and gaming is naturally going to lead to an increase in problem gaming. There is still a lot of data to collect and synthesize, particularly given that many regulated jurisdictions have only been up and running between one and three years.

Operators have started to take a focused view of responsible gaming and have dedicated internal teams, as well as funding research. Failure here is another existential threat to the industry and a big scandal could do a huge amount of damage to a nascent industry.

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I see responsible gambling being a cutting-edge issue as it is so critically important so it will only become more and more relevant moving forward.

“32 states to enact sports-gambling legislation by the end of 2023”

This was a very accurate prediction as gambling is now legal in 35 states. Expansion has slowed down a bit compared with the great momentum we saw between 2018-2020, but we will see additional states roll out legislation in the short term. Some states will never legalize of course, but eventually, we will have 80-90% of the US allowing sports betting.

California, Texas and Florida are the three remaining big states that everyone is now eagerly waiting for, offering huge potential due to their respective market size.

“International betting operators prohibited free access to the US”

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No rules or regulations have been implemented to specifically keep out remote operators or benefit local ones except those operating in black or grey markets. The US has been an open market for operators from Europe, but I have spoken to many companies who are finding the different rules across the regulated states extremely confusing and resource draining. The US is the equivalent of 50 countries and there is very little federal law that applies to gambling, making it difficult to operate if you are not a company with a dedicated compliance team or efficient tools to fill that need.

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AGLC

Casino ATM Scam in Edmonton Reveals Money Laundering and Drug Links

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Law enforcement in Alberta continues to search for the last suspect in a sophisticated fraud operation that targeted ATMs in Edmonton-area casinos and resulted in over CAD 1 million ($720,487) in losses throughout Western Canada.

The Royal Canadian Mounted Police (RCMP) has confirmed that Hisham Ismaeel, 28, remains at large with a province-wide warrant for his arrest. He faces charges of fraud exceeding $5000 and possessing proceeds of crime. Police have already arrested four other men linked to the scheme. Investigators describe the operation as a well-planned effort to exploit financial systems and clean dirty money.

The accused, Elliot Miao, 42, Van Bau Ta, 39, Hassan Jaafar Haydar Ahmad, 37, and Dennis Jones, 42, showed up in the Alberta Court of Justice last week. They face charges from fraud and money laundering to owning criminal property. Miao also has a narcotics trafficking charge after police found cocaine when they searched with warrants.

Investigators claim the group made coordinated withdrawals at several casino ATMs, timing their transactions to avoid getting caught. This action messed up ATM networks in the area and showed flaws in the systems that banks and casinos use to stop misuse.

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The RCMP Federal Policing Northwest Region led an investigation that involved six search warrants in Edmonton. The Edmonton Police Service, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Alberta Gaming, Liquor and Cannabis (AGLC), and several banks supported this effort. Officials said the case shows how teamwork between public agencies and the private sector plays a key role in combating modern financial crime.

AGLC representatives pointed out that casino operators in the province must follow strict reporting and surveillance rules under Canada’s anti-money laundering laws. The specific casinos affected remain unnamed, but the Edmonton region has seven licensed facilities. AGLC said its policies helped spot problems and backed the RCMP’s investigation.

Compliance experts say this fraud shows how criminals change their methods to take advantage of weak spots in reporting limits and transaction checks. They claim that casinos, which deal with lots of cash, are still easy targets unless they keep improving their detection systems and teach their front-line workers to notice coordinated actions like several big withdrawals happening one after another.

For now, the case highlights both the money and crime aspects of casino-related fraud. Besides the million-dollar losses, finding drugs during the raids points to a bigger criminal operation where financial crimes and drug dealing overlap.

The post Casino ATM Scam in Edmonton Reveals Money Laundering and Drug Links appeared first on Gaming and Gambling Industry in the Americas.

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Bragg Gaming

Bragg Confirms Cyber Attack – Hackers Access Internal IT Systems

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Bragg Gaming Group, a leading online gaming technology provider, has confirmed a major cybersecurity incident that compromised its internal IT infrastructure in the early hours of Saturday, August 16, 2025.

The company detected unauthorized intrusion attempts that successfully breached its internal network, triggering an immediate and comprehensive incident response.

Key Takeaways

  • Bragg Gaming Group experienced a cybersecurity breach involving access to internal IT systems.

  • No customer personal data or payment information appears to have been compromised.

  • The company has enacted full containment and investigation protocols.

Details of the Breach

According to a preliminary forensic analysis by Bragg’s internal security team, the attack was a targeted breach aimed at the company’s internal computer environment. While the exact method of intrusion is still under investigation, early indicators suggest a sophisticated exploit of internal network vulnerabilities.

Fortunately, the company’s customer-facing systems, including sensitive user data and financial information, appear to have been unaffected. Bragg’s existing encryption protocols and access control systems successfully prevented the attackers from accessing customer information.

Immediate Response Measures

In response to the breach, Bragg launched a multi-tiered containment strategy, including:

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  • Network Segmentation to isolate affected systems

  • Enhanced Monitoring of data flows across its Remote Games Server (RGS) platform

  • Security Audits of critical infrastructure, including the Bragg Hub and PAM systems

  • Engagement of Independent Cybersecurity Experts to assist in incident analysis and system hardening

Bragg’s Security Operations Center has also elevated its alert level, initiating 24/7 monitoring across all server clusters and network endpoints. In addition, company-wide penetration testing is now underway to proactively identify any residual vulnerabilities.

Business Continuity Maintained

Despite the severity of the breach, Bragg reports that its operations remain unaffected. All gaming services, including iCasino and sportsbook offerings across regulated markets, continue to function without disruption.

“While this incident is deeply concerning, we are confident in the rapid and thorough response initiated by our team,” a company spokesperson stated. “We remain committed to protecting our infrastructure, our partners, and most importantly, our players.”

Looking Ahead

As part of its response, Bragg has also launched mandatory security awareness training for all employees to reinforce best practices and prevent future incidents.

Cybersecurity analysts will continue working with Bragg to determine the full scope of the attack, improve system resilience, and maintain the trust of its users and stakeholders.

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Bragg’s handling of the incident highlights both the evolving nature of cybersecurity threats and the importance of robust, responsive defense systems in the digital gaming sector.

Source: cybersecuritynews.com

The post Bragg Confirms Cyber Attack – Hackers Access Internal IT Systems appeared first on Gaming and Gambling Industry in the Americas.

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AGCO

AGCO Removes Cap on Seller Commission for Charitable Lottery Products

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The Alcohol and Gaming Commission of Ontario (AGCO) has updated several lottery policies to remove the cap on seller commission for Paper Raffles and Media Bingo, along with removing the prohibition on Catch the Ace paper lotteries, to align with other charitable lottery products.

Licensed charities may now negotiate commissions directly with sellers and determine commissions, provided they are reasonable and tied to the cost of service provided by the seller.

These updates further the AGCO’s commitment to adopt an outcomes-based regulatory approach and reduce burden for the charitable gaming sector. Local charitable organizations will have greater flexibility to make decisions that best serve their fundraising objectives.

Important Reminders

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• Charities must still receive approval for other expenses incurred under their licence and retain receipts for seller commission paid.

• Licensing authorities will not require documentation to be submitted as part of the application process, however, charities are still subject to audit to determine compliance.

• Charities are reminded of their legal requirement to meet their obligations under the Criminal Code and with respect to conducting and managing a charitable gaming scheme.

• As with all licensed charitable lottery events, charities must take the necessary steps to ensure that they are conducting and managing the lottery event within Ontario.

For charitable gaming-related inquiries, email an AGCO Eligibility Officer at [email protected] or call AGCO Customer Service at 1-800-522-2876, Monday to Friday from 8:30 a.m. to 5 p.m.

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The post AGCO Removes Cap on Seller Commission for Charitable Lottery Products appeared first on Gaming and Gambling Industry in the Americas.

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