Compliance Updates
Florida Targets Fantasy Sports Firms Over Possible Illegal Betting Games
Florida gambling regulators have sent cease-and-desist letters to three daily fantasy-sports operators accused of offering potentially illegal mobile betting games and threatened legal action if the sites don’t immediately stop.
Commission Executive Director Lou Trombetta sent letters warning the three companies that they “may be offering or accepting illegal bets or wagers” from Floridians and “may be promoting and conducting an illegal lottery.”
The alleged conduct is “strictly prohibited in Florida and constitutes criminal activity,” Trombetta wrote.
The letters targeted Underdog Sports, LLC, which is based in Brooklyn, N.Y; SidePrize LLC, also known as Performance Predictions LLC, doing business as PrizePicks, which is based in Atlanta; and Betr Holdings, Inc., which is based in Miami.
In fantasy sports, players can draft rosters of actual athletes, with the winners of fantasy games determined by the statistics of the athletes. Many games, like office pools, last all season.
The three companies offer what are known as “parlay-prop-style” games that could be more similar to sports-betting games that are off-limits in Florida.
“Under Florida law, betting or wagering on the result of contests of skill, such as sports betting, including fantasy sports betting, is strictly prohibited and constitutes a felony offense unless such activity is otherwise exempted by statute,” Trombetta’s letter said. “Accordingly, in Florida, sports betting may be lawfully conducted only pursuant to a gaming compact. … Further, receiving such illegal bets and wagers and aiding or abetting such criminal activities constitute separate felony offenses. … Lotteries are also strictly prohibited in Florida.”
A gaming compact is an agreement reached with the state.
The commission did not send letters to DraftKings and FanDuel, which have dominated the fantasy-sports market in the decade since the online games launched.
It was unclear Friday if the commission would crack down on other operators in the future, but emails show the gambling overseers could be casting a broad net.
“As you might imagine, my exec team asking what the letter means and seeking actionable advice, pretty urgently. Would like to discuss the substance at some point, but if you can help with one question, it would be great. Namely, Underdog operates multiple paid fantasy formats (season-long drafts, daily drafts, pick’em) and I just want to confirm my reading of the letter, which is that the legal conclusion applies to all paid fantasy contests — e.g., all of our contests — and not just particular types,” Nicholas Green, Underdog’s general counsel, wrote Friday to Ross Marshman, the commission’s general counsel.
“Your reading of the letter is correct,” Marshman replied.
John Lockwood, an attorney hired by multiple operators, warned that other companies could be swept up in the crackdown.
“The commission staff confirmed to me that the language in the letter broadly applies to all paid fantasy sports contests, and they are not aware of any paid fantasy sports company operating legally in Florida. We disagree on the merits and will be working with the commission and potentially the Legislature so we can ensure Florida sports fans can continue to play,” Lockwood said.
State lawmakers in the past have grappled with creating regulatory oversight for the fantasy-sports industry, to no avail. Proponents of fantasy sports have insisted that the contests are games of skill, not chance, and thus are legal under state gambling laws.
Trombetta issued the letters as a legal battle continues over a 2021 compact reached by the state and the Seminole Tribe. That deal gave the tribe control over sports betting in Florida.
A “hub and spoke” plan in the agreement would allow gamblers anywhere in the state to place bets online, with the wagers run through servers located on tribal lands. The deal requires sports betting to be “exclusively conducted” by the Seminoles but allows other operators to run fantasy sports contests.
Owners of West Flagler Associates and Fort Myers Corp., doing business as Bonita Springs Poker Room in Southwest Florida, filed a lawsuit challenging the compact, saying it violated federal law and would cause a “significant and potentially devastating impact” on their operations.
A federal judge in Washington, D.C., in November 2021 ruled that the deal violated a key Indian gambling law. But a three-judge panel of the U.S. Circuit Court of Appeals for the District of Columbia in June reversed that decision. The appellate court last week denied a request for what is known as an “en banc” rehearing before the full court.
The pari-mutuel owners filed a motion saying they would ask the U.S. Supreme Court to weigh in, arguing the panel’s decision conflicts with other appellate rulings and “enables an extreme shift in public policy on legalized gaming that, once started, may be difficult to stop.”
Vixio, a leading provider of regulatory intelligence solutions, is proud to announce its Anti-Money Laundering (AML) Outlook, which found that regulators are cracking down on money laundering weaknesses with severe consequences, totaling over €36m in fines from March 2024 to March 2025 in Europe alone.
Vixio’s AML Outlook examines the challenges of complying with AML requirements in jurisdictions around the world, outlines regulators’ efforts to thwart criminal activity, and considers how payments and gambling firms can prevent being caught up in money laundering scandals.
The report found that in the last year, in the European area alone, there have been around 30 enforcement actions from regulators fining payments and e-money firms for falling short in their adherence to AML/CTF rules.
Financial institutions found to have money laundering weaknesses face profound consequences, with prosecutors and regulators alike generally unwilling to be empathetic on this matter. For example:
- In March 2025, Germany’s regulator, BaFin, fined Ratepay €25,000 over suspected money laundering.
- In February 2025, Estonia’s Money Laundering Data Bureau revoked B2BX Digital Exchange OÜ’s licence for failing to implement proper customer due diligence, transaction monitoring and risk assessments.
- The Bank of Lithuania, meanwhile, revoked Foxpay’s licence in November 2024 for systemic AML/CTF and governance failures, including fund mismanagement and conflicts of interest.
John Gidla, Head of Payments Compliance, Vixio, explains, “Although AML compliance involves significant costs for payments firms – including investment in transaction monitoring systems, customer due diligence (CDD) processes and ongoing staff training – the consequences of failure can be significant. In addition to financial penalties, failing to prevent money laundering can severely damage a firm’s reputation, leading to loss of customers, partners and investor confidence. Maintaining a strong compliance framework is crucial for preserving trust and long-term business viability.”
Until now, the EU’s AML enforcement has been more fragmented, but the EU’s new Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) could be a significant step towards addressing AML enforcement and closing gaps that criminals have been exploiting for years.
Regulatory scrutiny means that firms need to implement know your customer (KYC) procedures, monitor transactions on their systems for suspicious activity and report concerns through suspicious activity reports (SARs) to the relevant authorities.
The post Vixio Finds Over €36m in AML Fines Issued in Europe in the Last Year appeared first on European Gaming Industry News.
The European Gaming and Betting Association (EGBA) is pleased to announce a partnership with Letzz, an AI-powered compliance workspace designed for online gambling, to modernise regulatory monitoring and enhance strategic compliance across Europe’s fragmented online gambling landscape.
Through this partnership, EGBA will implement Letzz‘s AI-powered tool to enhance its own regulatory monitoring capabilities. Launching this week, the Letzz platform offers operators real-time, expert-validated insights and automated regulatory news scanning, creating a single, reliable source of information for compliance management.
“We are committed to promoting the highest standards of compliance across Europe’s online gambling sector,” said Maarten Haijer, Secretary General at EGBA. “With 27 countries in the EU, each with their own gambling laws and a myriad of requirements, accessible tools like Letzz can help both associations like EGBA and operators better understand the complex landscape of regulatory obligations.”
“We founded Letzz with the belief that compliance should be a competitive advantage, not just a necessity,” said Daniel Gambin, Co-Founder and CEO at Letzz. “Our partnership with EGBA allows us to bring this vision to a wider audience of operators who share our commitment to excellence in regulatory compliance. By transforming compliance from a challenge into a strategic business asset, we’re helping operators stay abreast of the latest regulatory changes.”
The collaboration reflects EGBA’s commitment to promoting a well-regulated online gambling market with the highest compliance standards.
Source: egba.eu
The post EGBA boosts regulatory monitoring with compliance workspace Letzz appeared first on European Gaming Industry News.
Fast betting content, data and live streaming provider becomes a Tier 1 Anti-Corruption Supporter to the Esports Integrity Commission helping drive match-fixing and fraud out of the industry
BETER, the award-winning provider of fast betting content, data and live streaming for esports and sports, has joined the Esports Integrity Commission (ESIC) as a Tier 1 Anti-Corruption Supporter.
As a member, BETER will assist the ESIC in identifying and investigating suspicious betting activity while also supporting the Commission’s wider goal of combating match fixing and betting fraud across the esports industry.
BETER is well placed to support the Commission, given its standard-setting approach to ensuring integrity across its fast-betting products and solutions.
As part of its supporter role, BETER will contribute to ESIC’s monitoring and intelligence functions, actively cooperating in the detection and investigation of suspicious betting activity. This includes visibility across its flagship ESportsBattle tournaments, delivering over 36,000 monthly esports events that are thoroughly monitored 24/7 by BETER’s Integrity team. .
The Integrity team ensures that all of BETER’s in-house events are conducted to the highest standards. This is achieved through rigorous e-learning sessions for all athletes participating in its contests, a 24/7 whistleblowing platform, the Integrity BOOTCAMP program, a comprehensive reporting system, partnerships with law enforcement agencies and sporting bodies/federations, and more.
Thanks to this robust integrity ecosystem, only 0.01% of events have been flagged for investigation as suspicious over the past 12 months.
Andrii Nekrutov, Chief Integrity Officer at BETER, said: “BETER’s strict measures and strong commitment to fair play principles in our ESportsBattle tournaments provide us with the qualities needed to be a strong and reliable member of the Esports Integrity Commission.
“We are one of the most experienced esports betting content providers with educational programs and approaches that are unrivalled when it comes to integrity and fairness.
“The team looks forward to working with the Commission to improve the esports ecosystem by eradicating match-fixing and bolstering principles of fair play. We have done a great job of this with our esports tournaments and believe we can help do the same for the wider industry.”
Stephen Hanna, Chief Executive Officer at the Esports Integrity Commission, added: “BETER’s membership to the Esports Integrity Commission is a testament to the company’s alignment with our mission to uphold and promote the highest standards of integrity, transparency and fair play within the global esports ecosystem.
“By becoming a member, BETER joins a growing community of industry leaders dedicated to fostering a safe, transparent and sustainable future of esports.”
The post BETER joins the Esports Integrity Commission appeared first on European Gaming Industry News.
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