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Compliance Updates

Florida Targets Fantasy Sports Firms Over Possible Illegal Betting Games

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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.”

Compliance Updates

KSA Issues Warning to 711 BV

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The Netherlands Gambling Authority (KSA) has issued a warning to 711 BV, an online gambling provider, for using an influencer to advertise online gambling. This violates the ban on using role models to advertise online gambling. The purpose of these rules is to protect vulnerable groups, such as young people and at-risk and problem gamblers, from gambling advertising.

Role model ban

Online gambling providers are prohibited from using role models, such as professional athletes, actors, models and influencers. The Royal Netherlands Gambling Authority (KSA) has informed 711 that all expressions in which the influencer promotes the gambling provider must be removed. This means, among other things, that the expressions may no longer be seen in the videos. 711 has confirmed that the collaboration has ended and has initiated the removal of the content in question.

The KSA emphasized that gambling providers must be careful about who they use for promotion.

In addition, the KSA addressed 711 about offering tournaments in which players were automatically entered, without having to register or agree to the bonus terms. This can lead to inappropriate gaming behaviour. 711 has confirmed that it has stopped this practice.

The post KSA Issues Warning to 711 BV appeared first on European Gaming Industry News.

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Compliance Updates

eGaming Integrity Celebrates Two Years of Independent Compliance and Audit Expertise

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eGaming Integrity Ltd marks its two-year anniversary, celebrating a period of growth, trust, and continued delivery of independent regulatory, compliance, and audit expertise to eGaming operators, suppliers, and Corporate Service Providers.

Founded by former regulators and senior compliance leaders, eGaming Integrity was established with a clear mission: to help protect licences and reputations through practical, regulator-ready assurance. Two years on, the firm continues to provide objective, expert support designed to strengthen governance and reduce regulatory risk.

A Trusted Partner for Assurance

In just 24 months, eGaming Integrity has become a trusted partner for organisations seeking confidence in their control environments. The team delivers:

  • mock regulatory audits and inspection readiness;
  • independent internal audit programmes;
  • targeted remediation and advisory support.

Emma Shilling, Director, highlighted the firm’s commitment to meaningful, independent assurance: “Reaching our second anniversary is a proud moment. From day one, our focus has been to provide independent assurance that adds real value. We help embed governance and compliance into everyday operations to protect licences and reputations for the long term.”

Robert Penfold, Head of Internal Audit, highlighted the importance of objective insight in strengthening client operations: “Over the past two years, eGI has shown how truly independent audit and compliance support can reduce risk and give boards confidence that controls are working as they should. Our role is to provide clear, workable solutions that prepare businesses for scrutiny and support their ongoing success.”

Looking Forward

As it enters its third year, eGaming Integrity remains committed to delivering expert,

impartial, and commercially practical assurance. Whether preparing businesses for regulatory engagement, providing independent internal audit services, or supporting targeted remediation, the firm’s goal remains simple: to be the trusted partner that helps protect licenses and reputations.

The post eGaming Integrity Celebrates Two Years of Independent Compliance and Audit Expertise appeared first on European Gaming Industry News.

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Compliance Updates

Regulators Call for Stronger Measures Against Illegal Online Gambling

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Regulators of Austria, France, Germany, Great Britain, Italy, Portugal and Spain issued a joint institutional statement.

The fight against illegal online gambling is one of the paramount tasks facing regulated jurisdictions. Its borderless nature and the speed of technological innovation make it easier for illegal operators to evade regulatory oversight. This creates significant risks for consumer and public health protection, endanger public order and harms the activity of legitimate operators. In short, illegal online gambling undermines the entire regulatory framework designed to protect the public interest.

The statement reads: “We express our common concern regarding the increasing proliferation of advertising targeting our jurisdictions by unauthorised operators, particularly through digital channels such as social media, video platforms, and affiliate networks. These activities not only violate our national laws but also expose citizens — including minors and vulnerable individuals — to significant risks associated with illegal gambling.

“We wish to express our strong commitment to consumer protection, market integrity, and compliance with national and international regulations within the respective legal framework by:

• sharing information on illegal operators among us

• calling on digital platforms and social media networks to strengthen their control mechanisms to prevent the dissemination of advertising content from unauthorised operators

• reaffirming our commitment to share knowledge and better practices in identifying, investigating, and sanctioning operators acting outside the law.

This statement marks a renewed and united commitment by our jurisdictions to strengthen the integrity of the regulated gambling sector and to protect citizens from the risks posed by illegal gambling activities.”

The post Regulators Call for Stronger Measures Against Illegal Online Gambling appeared first on European Gaming Industry News.

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