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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

Million Games Secures Swedish Licence Ahead of ICE Barcelona 2026

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Million Games has been officially approved by the Swedish Gaming Authority (Spelinspektionen) for a licence to provide commercial online games in Sweden. The milestone marks a major step in the company’s strategic expansion into regulated markets — perfectly timed ahead of Million Games’ appearance at ICE Barcelona 2026.

“This achievement represents more than compliance — it’s a milestone that defines our direction as a company,” said Thomas Nimstad, CEO of Million Games. “Sweden is our home market, and obtaining this licence reinforces our commitment to quality, responsibility and innovation. The timing couldn’t be better as we prepare to showcase our growing portfolio at ICE in Barcelona.”

A licence that opens doors

With the Swedish licence now secured, Million Games is ready to begin the next phase — certifying individual game titles and forming partnerships with Swedish operators and aggregators. The company’s expanding portfolio includes feature-rich video slots, table games, multiplayer formats and instant-win experiences developed in-house and through its Million Stars partner programme.

Million Games will continue aligning its products and internal processes with the highest regulatory standards, ensuring full compliance with Spelinspektionen’s technical requirements and player protection framework.

ICE Barcelona 2026 – a showcase of innovation

As one of the industry’s largest global exhibitions, ICE Barcelona 2026 offers the perfect platform for Million Games to present its vision for regulated market growth. Visitors will find the team at Stand 2C72, where upcoming game releases, partner collaborations and future roadmap highlights will be unveiled.

“Gaining the Swedish licence before ICE is the ideal timing,” Nimstad adds. “It allows us to meet potential partners face-to-face, demonstrate our compliance-ready portfolio, and strengthen Million Games’ position as a trusted, creative studio in regulated markets.”

The post Million Games Secures Swedish Licence Ahead of ICE Barcelona 2026 appeared first on European Gaming Industry News.

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Belgian gaming regulator

Belgian Regulator Supports New Law for Tougher Player Protection and Increased Oversight

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The Belgian gaming regulator Kansspelcommissie (KSC) has issued an endorsement of a proposed legislative bill aimed at strengthening player protection and enhancing regulatory oversight over gambling in Belgium.

The draft legislation’s key provisions include a proposed weekly deposit cap of €200 ($232.85) per gambling platform, a prohibition on gambling with credit, restrictions on the number of betting licences issued to newsagents and an extension of the national gambling self-exclusion register to include bars. The bill also proposes limits on the number of slot machines permitted in bar settings.

The bill also seeks to address the regulator’s concerns about its own operational capability and staff shortages. It proposes that the regulator must have at least 10 full-time members of staff, and it would also increase the maximum number of police officers that can be seconded to the commission be from four to eight.

While the KSC has broadly endorsed the bill’s objectives, it has recommended a phased rollout for certain measures, particularly the expansion of the exclusion system, which is expected to be fully implemented by May 2026. The commission also expressed some reservations about a total ban on credit card gambling.

The post Belgian Regulator Supports New Law for Tougher Player Protection and Increased Oversight appeared first on European Gaming Industry News.

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AUSTRAC

AUSTRAC Cracks Down on Cryptolink for Late Reporting

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AUSTRAC has issued Cryptolink an infringement notice of $56,340 and accepted a court-enforceable undertaking that addresses the company’s AML/CTF deficiencies.

The action follows AUSTRAC’s Crypto Taskforce identifying late reporting of large cash transactions and weaknesses in the company’s money laundering and terrorism financing risk assessments.

AUSTRAC CEO Brendan Thomas said the package of infringement notices and the enforceable undertaking is designed to ensure useable intelligence does not slip through the cracks.

“The infringement notice addresses previous non-compliance around reporting and the enforceable undertaking seeks assurance that Cryptolink has improved its risk assessments and strengthened its AML/CTF controls,” Mr Thomas said.

“Crypto ATMs are one of the highest risk money laundering channels in Australia at the moment. They are being exploited by criminals to launder money and move scam proceeds. This is not conjecture. It’s what our Crypto Taskforce observed and has been backed up by the work of our law enforcement partners.”

As part of the enforceable undertaking, Cryptolink must engage third party reviewers to:

• validate whether the business has reported all required threshold transactions to AUSTRAC

• assess whether the business has implemented effective controls for large cash transactions

• review Cryptolink’s money laundering and terrorism financing risk assessment to ensure it is fit-for-purpose.

Cryptolink has fully cooperated with AUSTRAC and paid the infringement notice in full. Payment of an AUSTRAC infringement notice is not an admission of liability.

The enforcement action comes after intensive engagement with crypto ATM operators since late 2024.

Working in partnership with law enforcement, AUSTRAC’s Crypto Taskforce estimated that 85% of transactions made by the 90 most prolific crypto ATM users were the proceeds of scams and money mule activity.

“Scams are one of the biggest drivers of suspicious activity and criminals have been using crypto ATMs to move and cash out stolen funds,” said Mr Thomas.

A recently released Australian Institute of Criminology report found more than 40% of cybercrime victims are revictimised, often within months.

“With this in mind we want people to be cautious of making transactions to any wallet they don’t control and thinking twice in circumstances where someone asks you to deposit money into a crypto ATM.”

The second stage of the Crypto Taskforce is focussed on high-risk operations.

“Criminals don’t care how they hurt people, they care about making money,” said Mr Thomas.

“We want to work with the digital currency exchanges to harden the sector against exploitation but if operators don’t take this seriously, we will take action.”

The post AUSTRAC Cracks Down on Cryptolink for Late Reporting appeared first on European Gaming Industry News.

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