Federal inspectors say sports gambling materials were sitting out in the open across several housing units at USP Canaan, according to a newly released watchdog report examining conditions inside the federal penitentiary in Pennsylvania.

Investigators from the Justice Department’s Office of the Inspector General arrived for an unannounced inspection in June 2025 and said they repeatedly encountered betting-related flyers and other gambling materials in inmate common areas.

“We observed gambling flyers under televisions, on tables, and on top of a correctional officer control panel,” the report said. One flyer was “partially covering a Prison Rape Elimination Act reporting poster.”

Inspectors said the activity appeared widespread rather than isolated to one section of the prison. “We observed sports gambling flyers posted throughout the common areas in all five housing units we visited,” the report stated. Investigators also found “a gambling table mat with playing cards,” including “markings for a dealer and for bet placements.”

Concerns over visible gambling contraband activity in USP Canaan

The report described the materials as openly displayed and easy to spot during the walkthrough. “At least one of the flyers was laminated,” inspectors wrote, while others “appeared to be typewritten and photocopied from the same electronic file.” The watchdog added that the flyers “were widespread and unconcealed,” raising concerns about “potential employee awareness and acceptance of inmate gambling.”

Federal Bureau of Prisons rules ban gambling and gambling-related materials inside institutions. The report pointed to agency policies listing “preparing or conducting a gambling pool” and “possession of gambling paraphernalia” as moderate-severity violations that can bring disciplinary penalties, including segregation or loss of good-conduct credits.

Inspectors connected the gambling findings to larger concerns about prison security and contraband enforcement at USP Canaan. According to the report, prison staff recovered 166 weapons between December 2024 and June 2025. During the inspection itself, investigators also found what appeared to be homemade tattoo needles.

Prison leaders acknowledged the dangers tied to organized inmate gambling during interviews with inspectors. According to the report, institution leadership “agreed that inmate gambling can create dangerous conditions in the institution.”

After the inspection, officials said they introduced a housing-unit incentive initiative designed to improve cleanliness and remove unauthorized materials from shared areas. Prison staff later told inspectors they planned weekly inspections and would reward inmates assigned to the cleanest housing unit with commissary incentives.

The prison also issued a notice warning inmates that “sports statistics, gambling information, solicitations, and other advertisements” were prohibited in housing-unit common areas unless approved.

Still, inspectors said documents provided by the prison only showed sanitation rankings for September and October 2025 and “did not demonstrate continuation of the program after October 2025.”

The inspector general ultimately issued nine recommendations, including instructions for the Bureau of Prisons to keep strengthening “contraband detection and removal efforts” at USP Canaan.

Featured image: OIG, June 2025 (Monitor Screen and Brand Logo Obscured)

The post Inspectors uncovered widespread sports gambling materials displayed throughout Pennsylvania federal penitentiary appeared first on ReadWrite.

More Ontarians are sticking with legal online gambling websites, according to a new Ipsos survey commissioned by the Alcohol and Gaming Commission of Ontario and iGaming Ontario.

The study found that 91.1% of people in Ontario who gamble online now use regulated gaming platforms licensed in the province. This is a jump of 7.4 percentage points from the previous year. Meanwhile, the share of players using only unregulated gambling websites dropped to 8.9%, compared with 16.3% a year earlier.

The findings arrive four years after Ontario launched its competitive online gaming market in April 2022. Before the province created the regulated system, officials estimated that roughly 70% of online gambling activity happened on offshore or unlicensed sites.

Ontario’s market requires operators to meet standards tied to responsible gambling, information security, game integrity, and player protections. Regulators have repeatedly warned that unregulated platforms may expose players to fraud, money laundering risks, and weak consumer safeguards.

“This increase in Ontarians choosing regulated igaming sites proves that we’ve taken the right approach to responsibly expanding the online gaming market,” said Stan Cho, Ontario’s Minister of Tourism, Culture and Gaming. “By prioritizing player protections and embedding responsible gaming tools into the market, our government is committed to providing a safer experience for players across the province.”

Ontario regulators continue tightening oversight despite pushing regulated gambling market

Officials say the province is continuing to build out consumer protection tools as the market grows. Ontario has been developing a centralized self-exclusion system that would allow players to block themselves across multiple gambling operators through a single process instead of opting out site by site.

At the same time, several court rulings have reinforced Ontario’s authority over online gambling activity connected to the province. Recent decisions involving Loto-Québec and offshore operators examined how gambling services offered across provincial and international borders should be regulated. Another Ontario Court of Appeal ruling found that online gambling businesses serving customers outside Canada could still face legal scrutiny in Ontario.

“It’s encouraging to see more and more Ontarians choosing regulated sites when they gamble online,” said Karin Schnarr, chief executive officer and registrar at the AGCO. “This continued shift reflects the strength of Ontario’s model and its focus on protecting players. The AGCO remains committed to addressing the residual illegal market and ensuring regulated operators meet Ontario’s strong regulatory standards.”

The latest numbers also show improvement from earlier surveys. An Ipsos report released in 2024 found that 86.4% of Ontarians who gambled online had used regulated sites, while a 2025 study showed that figure had slipped to 83.7%.

Ontario’s online gaming sector has expanded quickly since legalization, with dozens of licensed operators now active across the province. Regulators still acknowledge that some players continue using both legal and unregulated platforms.

Featured image: Canva

The post Ontario regulated gambling market now captures overwhelming majority of online players appeared first on ReadWrite.

Federal prosecutors say a Sacramento man collected more than $500,000 through a bogus cannabis investment operation that targeted people he met while socializing at casinos, bars and restaurants across California.

A federal grand jury indicted 49-year-old Keinyatey Deboros Chambers on 10 wire fraud counts tied to the alleged scheme. Court records show Chambers was expected to appear in court Friday for his first hearing in the case, according to the U.S. Attorney’s Office for the Eastern District of California.

Investigators believe the operation stretched from December 2017 through March 2026. Prosecutors said Chambers told potential investors he worked in the cannabis business and promised unusually large profits within a matter of days or weeks if they invested money with his company.

Authorities said those claims were false. Investigators allege Chambers had no legitimate role in California’s cannabis industry and never invested the money the way he promised victims he would.

Investigators probe wider gambling-related crimes amid Sacramento casino cannabis fraud case

According to prosecutors, the money instead went toward personal spending, casino gambling and payments to associates connected to him. Authorities also said Chambers repeatedly pressured victims to invest additional money and encouraged them to recruit friends or relatives into the operation.

The investigation centered on people Chambers allegedly approached during casual encounters at gambling venues and nightlife spots throughout the state. Federal authorities said he used those settings to build trust before persuading victims to hand over money.

California Attorney General Rob Bonta said the case reflects continuing efforts to crack down on financial scams targeting residents.

“The California Department of Justice is committed to safeguarding the public and ensuring a fair, transparent marketplace for everyone,” said Attorney General Bonta in a press release. “To uphold this promise, our team works tirelessly to investigate, expose, and dismantle the complex financial crimes and fraudulent schemes that threaten our communities. Those who exploit trust of innocent people to enrich themselves will face the full consequences of the law.”

The FBI and the California Department of Justice’s Bureau of Gambling Control handled the investigation. Assistant U.S. Attorney Jessica Delaney is leading the prosecution.

The federal case arrives as Sacramento-area authorities continue pursuing other gambling-related crimes. Investigators recently announced the dismantling of an illegal gambling network in the region, while another Sacramento gambling case resulted in a defendant receiving a 301-years-to-life prison sentence after a violent robbery conviction.

Federal officials urged anyone who believes they lost money through Chambers’ alleged operation, or anyone with information tied to the investigation, to contact the nearest FBI office.

If convicted on the wire fraud charges, Chambers could face up to 20 years in prison and a $250,000 fine for each count. Prosecutors noted the charges remain allegations, and Chambers is presumed innocent unless proven guilty beyond a reasonable doubt.

Featured image: Canva

The post Federal casino fraud indictment targets Sacramento man over fake cannabis investment appeared first on ReadWrite.

Malta’s opposition Nationalist Party says it would block any attempt to introduce a European Union-wide online gambling tax, arguing the measure would hurt Malta’s economy and weaken regulated operators across Europe.

Speaking during a European Parliament plenary debate on future EU “own resources,” Nationalist MEP David Casa described the proposal as deeply damaging for member states with large regulated gaming sectors.

“There have been many strange ideas when it comes to own-resources, but this is the worst one so far,” Casa said during his address.

The proposed levy is part of wider EU discussions about creating new funding streams for the bloc’s budget. Parliamentary discussions cited during the debate suggested an online gaming tax could generate between €2 billion ($2.3 billion) and €4 billion ($4.7 billion) annually.

Casa argued the measure would punish licensed European operators while giving illegal and offshore platforms an advantage.

“A tax that will prejudice licensed EU companies, putting them at a competitive disadvantage,” he said. He added that the proposal would end up “pushing them to third countries and consumers to the grey market” where operators “do not pay tax, and who do not offer even the most basic consumer safeguards.”

Concerns shared over Malta’s gaming framework amid European Union gambling tax proposal

European regulators have been increasing cooperation against illegal online gambling networks operating across borders. Regulatory authorities from several European countries recently strengthened joint enforcement efforts aimed at black-market operators, warning that unlicensed platforms create consumer risks and avoid tax obligations.

Casa said Malta’s licensed gaming industry already works under strict supervision and compliance requirements.

“This sector contributes to over 10% of Maltese GDP,” he said. “Respects robust standards and consumer protection and creates high quality employment.”

He also warned Malta remains uniquely exposed to any disruption affecting the sector.

“There is no other member state as exposed as Malta,” Casa said. “We would suffer most from misguided policies that would push business away from the EU.”

The issue also arrives while Malta continues facing scrutiny over Bill 55, legislation designed to shield Maltese gaming companies from certain foreign court judgments. Malta’s Gaming Authority has repeatedly defended Article 56A, arguing the framework protects the country’s regulatory autonomy while remaining consistent with national law.

At the same time, the authority recently confirmed plans to remove the EU’s Online Dispute Resolution platform from local procedures after changes at European level made the system obsolete.

Casa stressed that any new EU own-resources mechanism would still require unanimous backing from member states.

“Let us not waste time, own resources require unanimity,” he said.

He then warned that a future Nationalist government would immediately block the proposal.

“I cannot speak for the present government, particularly since this proposal is socialist led,” Casa said. “But let me be clear, a PN government would veto this proposal. Without hesitation.”

“We will not let anyone dictate to us what is in our sole competence,” Casa said. “Malta will decide on this matter. And we certainly will not be told what to do by any socialist.”

Featured image: David Casa via Facebook

The post Nationalists promise Malta veto against proposed European Union online gambling tax appeared first on ReadWrite.

Michigan gambling regulators are expanding a free program that blocks betting websites and apps after residents quickly claimed most of the first round of licenses.

The Michigan Gaming Control Board said Thursday (May 21) it bought 100 additional Gamban licenses after more than 80 of the original 100 were claimed during the program’s first two weeks. The software is available at no cost to Michigan residents and works across Android, iOS, Windows and macOS devices.

Each license can be used on unlimited household devices, giving users the ability to block gambling platforms across phones, tablets and computers with a single account.

“The response from Michigan residents in the first two weeks of this program exceeded our expectations and speaks to a genuine need in our communities,” said MGCB Executive Director Henry Williams. “We acted quickly to secure an additional 100 licenses so that no resident seeking this kind of support is turned away. Michigan is committed to ensuring that the expansion of legal gaming comes with the strongest possible safeguards for the people we serve.”

State regulators first announced the Gamban partnership in April. Residents can request licenses lasting from one to five years without enrolling in a formal self-exclusion program.

Demand drives expanded Gamban responsible gaming efforts in Michigan

Gamban said its software blocks access to online casinos, sports betting sites, poker rooms, slot platforms, social casinos and cryptocurrency gambling services. The company also says the software restricts access to offshore and unregulated operators that target U.S. consumers.

The expansion comes as Michigan regulators continue balancing the rapid growth of legal online gaming with broader consumer protection efforts. State officials have recently increased enforcement activity against offshore gambling operators accused of offering illegal betting services to Michigan residents.

Earlier this year, the Michigan Gaming Control Board sent cease-and-desist letters to 12 offshore gambling websites, warning the operators to stop accepting wagers from people inside the state. Regulators said those platforms lacked proper licensing and consumer safeguards required under Michigan law.

According to the National Council on Problem Gambling, roughly 2% of Americans meet the criteria for gambling addiction. Michigan officials say programs such as Gamban provide another layer of support for people trying to reduce or eliminate gambling access altogether.

“The strong response to this program tells us that residents want accessible, device-level support — and we intend to keep delivering it,” Williams added. “These additional licenses mean more Michigan residents can take back control, free of charge.”

Residents can obtain the software through the Michigan Gaming Control Board’s responsible gaming resources page by creating a Gamban account and installing the program on their devices. Gamban also offers live technical support to help users complete installation.

The Gamban partnership operates alongside other state responsible gaming programs, including Michigan’s online self-exclusion system, the Disassociated Persons List for Detroit casinos and the “Don’t Regret the Bet” public awareness campaign.

Featured image: Michigan Gaming Control Board

The post Michigan expands free gambling blocking program following strong early resident demand appeared first on ReadWrite.

The Ho-Chunk Nation is reworking its federal lawsuit against prediction market company Kalshi, shifting the case away from a general attack on sports wagering and toward a more focused dispute over tribal gaming law and advertising claims.

In a filing submitted May 22 in the U.S. District Court for the Western District of Wisconsin and seen by ReadWrite, the tribe asked a judge for permission to amend its complaint after part of the original case was dismissed earlier this month. The revised complaint centers on the Indian Gaming Regulatory Act, or IGRA, which the tribe says provides clear legal authority showing Kalshi falsely promotes nationwide legal sports betting.

The case has become one of several major legal fights surrounding prediction markets and sports-related event contracts. Kalshi has argued its products are regulated under federal commodities law through the Commodity Futures Trading Commission, while tribes and state regulators contend the offerings closely resemble sports gambling.

Ho-Chunk Nation re-focuses legal dispute against Kalshi to tribal gaming law

Earlier this month, the court dismissed the Ho-Chunk Nation’s original Lanham Act claim, ruling the tribe had not identified sufficiently definitive legal guidance proving Kalshi’s statements about legality were false. The judge noted courts around the country have issued conflicting decisions involving prediction markets and state gambling restrictions.

The tribe now argues IGRA resolves that uncertainty. According to the proposed amended complaint, class III gaming, including sports betting, is only lawful on tribal lands when it is authorized by tribal ordinance, conducted in a state permitting that activity, and governed through a tribal-state compact.

The filing says Kalshi already unsuccessfully challenged that interpretation during earlier proceedings. The tribe pointed to prior court rulings rejecting Kalshi’s arguments that IGRA does not apply to its conduct, that federal commodities law independently authorizes its activity, and that the Commodity Exchange Act overrides tribal gaming authority.

The Ho-Chunk Nation also claims Kalshi’s marketing language creates confusion because the company advertises “Sports Betting” and “Sports Gaming” while separately describing itself as a derivatives exchange handling event contracts.

According to the filing, Kalshi presents itself as “a New York-based DCM” operating “events contracts” through market makers that “bolster liquidity.” The tribe argues consumers might respond differently if those services were marketed strictly with financial trading terminology instead of sports betting language.

The revised complaint alleges Kalshi’s advertising “misrepresents the nature of Kalshi’s platform and offerings in violation of the Lanham Act.”

The Wisconsin lawsuit is unfolding alongside related actions in Arizona and other states, where regulators, tribal gaming operators, and federal agencies are increasingly clashing over prediction market oversight. The CFTC has separately pursued legal action tied to state-level efforts targeting event contracts, while Kalshi continues seeking dismissal of tribal claims challenging its business model.

Kalshi also recently asked the Wisconsin court to pause its deadline to answer the complaint while the judge considers the amendment request.

Featured image: Kalshi / Ho-Chunk Nation

The post Ho-Chunk Nation narrows Kalshi lawsuit in Wisconsin around tribal gaming law appeared first on ReadWrite.

Brazilian police arrested Brabet betting platform owner Alberth Cesar Janjon last week as investigators widened a sprawling probe into suspected illegal gambling operations operating across several states.

Officers with the Civil Police carried out the arrest on May 21 at an apartment in the Nova Campinas neighborhood. Authorities said the operation also resulted in the seizure of cell phones, credit cards, luxury handbags, more than 10 watches, and two high-end vehicles tied to the investigation.

Police believe the case is connected to a broader network of online gambling websites that allegedly used influencers and bloggers to attract users with promises of easy profits and guaranteed winnings. According to investigators, the operation may have reached users in São Paulo, Minas Gerais, Mato Grosso, Santa Catarina, Ceará, and Bahia.

Authorities have concentrated much of the investigation on platforms associated with “Jogo do Tigrinho” and other online games of chance that gained massive visibility through social media promotion.

Janjon’s lawyers pushed back against the arrest and said there was no justification for keeping him detained before trial.

The defense informs that this is a case originating from the interior of Ceará, investigating alleged payments made to influencers for the promotion of platforms known as ‘Jogo do Tigrinho’ and other games of chance,” the statement said.

“The defense argues that pretrial detention is entirely inappropriate and disproportionate. The suspect is a businessman, has a fixed address, a known legitimate business activity, and has provided proof of the origin and acquisition of the seized assets.”

Investigation expands across multiple states

Investigators said the enforcement operation also led to the arrest of another man identified as the suspected leader of the criminal organization. Police detained him at Guarulhos International Airport while authorities say he was attempting to leave the country.

Detective Sandro Jonasson, who works with the Narcotics Investigation Division in Campinas, said investigators initially became interested in the group because of the lavish lifestyle displayed by several people connected to the operation.

“This individual flaunted an extremely high standard of living, without an established income, without a credible financial background,” Jonasson said.

Authorities examine influencer involvement

Authorities are now examining the involvement of digital influencers and bloggers who advertised the gambling websites online. Investigators are trying to determine whether those promoters received fixed payments, commissions, or other compensation in exchange for steering followers toward the betting platforms.

Police have not released the total number of suspects who may eventually face charges. Investigators said the inquiry remains active as authorities continue identifying additional participants and tracing the full extent of the alleged gambling network.

Brazil intensifies crackdown on online betting schemes

The case is the latest in a growing crackdown across Brazil targeting online betting schemes that authorities say rely heavily on social media personalities and aggressive digital marketing campaigns to attract users to unregulated gambling platforms.

The post Brazil gambling probe widens after Brabet owner arrested during police operation appeared first on ReadWrite.

Indonesia has blocked access to Polymarket after officials concluded that the prediction market platform operates as online gambling under national law.

The Communication and Digital Affairs Ministry announced the move on Friday and said authorities are stepping up enforcement against digital betting services across the country. Officials argued that platforms allowing users to speculate on uncertain future events fall within Indonesia’s gambling restrictions, even when those services are tied to crypto assets or blockchain technology.

The government will not allow any form of online gambling in Indonesia,” Alexander Sabar, the ministry’s director general of digital space supervision, told reporters in Jakarta.

Authorities said Polymarket allows users to place financial wagers on elections, economic developments, sports results, and other future outcomes. While prediction markets often present themselves as information or forecasting tools, Indonesian regulators said the practical function still resembles gambling activity.

Sabar said Polymarket’s activities involve betting and speculation on uncertain events, putting the platform in violation of national regulations.

Officials confirmed the platform’s website has already been blocked inside Indonesia as part of a broader campaign targeting online gambling services. The ministry also warned residents against using crypto-based betting platforms that could expose users to financial losses or legal risks.

Government widens crackdown on prediction markets

The ministry said it is now tracing social media accounts connected to Polymarket as authorities try to limit promotion of the platform across multiple online channels. Officials added that similar services could face future restrictions if regulators determine they facilitate speculative betting activity.

Indonesia’s action mirrors growing pressure on prediction market companies in several other countries. According to Sabar, Singapore, Brazil, and India have already blocked Polymarket, while Taiwan, Thailand, China, and Japan have imposed various restrictions tied to domestic regulations.

US regulators increase pressure on prediction platforms

Legal scrutiny has also intensified in the United States, where prediction markets are facing challenges from both federal and state authorities. Recent disputes involving the Commodity Futures Trading Commission have centered on whether event-based contracts should be treated as regulated financial products or illegal gambling instruments.

Several American states have pursued lawsuits and enforcement actions against prediction market operators, arguing that election-related contracts and sports-event wagers violate local gambling laws. At the same time, the CFTC has defended aspects of federally regulated prediction markets in ongoing court battles over jurisdiction and oversight authority.

Indonesia says enforcement aims to protect users

Indonesian officials said their enforcement campaign is intended to protect internet users, especially younger people who may be drawn to speculative digital betting platforms promoted online.

The ministry said authorities will continue coordinating with law enforcement agencies and other institutions to monitor digital services operating inside the country. Officials added that the broader goal is maintaining what they described as a safe, healthy, and productive digital environment for Indonesian users.

The post Indonesia blocks Polymarket amid expanding global pressure against prediction market platforms appeared first on ReadWrite.

Kalshi has formally demanded the removal of an advertising campaign by a watchdog that accuses the company of operating like a sportsbook while presenting itself as a federally regulated financial exchange.

A cease-and-desist letter sent May 20 to the operators of KalshiLies.com claims watchdog group FairPredicts published “false, misleading, defamatory, and commercially disparaging statements” about Kalshi and related businesses. The letter was signed by Kalshi General Counsel Richard Heaslip and attorney Maria Vouterakou.

Earlier this week, FairPredicts launched a Washington advertising push targeting the prediction-market industry. The nonprofit describes itself as a “nonpartisan market integrity watchdog” focused on regulation, transparency, and consumer protections tied to event-based trading platforms.

One ad circulating on transit placements and mobile billboards asked: “If Kalshi is not the house, why do they win when you lose?”

FairPredicts argues that Kalshi Trading LLC, an affiliated market-making firm, profits when customers lose money and effectively behaves like “the house” inside the exchange. Journalist Miranda Nazzaro reported the campaign involved a six-figure advertising purchase timed to coincide with rising congressional attention on prediction markets.

Kalshi rejected those allegations in unusually sharp terms. The company said its affiliated trading operation represents “less than 1% of overall sports trading volume on the platform” and “does not systematically participate in every trade.” The letter also stated Kalshi operates “at a negative P&L” rather than generating sportsbook-style profits from user losses.

Kalshi issues cease-and-desist against watchdog following campaign

Kalshi continues battling several states that argue sports-event contracts resemble unlicensed gambling products rather than federally protected financial instruments. This week, the company sued Rhode Island regulators.

Lawmakers have also intensified questions surrounding insider trading and market integrity. A recent Senate hearing examining sports betting and prediction markets explored concerns involving youth access, manipulation risks, and whether event contracts blur the line between investing and gambling.

Kalshi recently tightened restrictions preventing politicians, campaign staffers, athletes, and league employees from trading certain contracts tied to events where they could possess nonpublic information. 

Federal prosecutors have also brought what is believed to be the first criminal insider-trading case connected to prediction markets. A U.S. soldier accused of using confidential information to place Polymarket bets recently pleaded not guilty, adding fresh attention to regulatory gaps surrounding the industry.

FairPredicts has continued accusing Kalshi of weak anti-money-laundering safeguards, misleading advertising, and conflicts between retail traders and affiliated liquidity providers. Kalshi’s legal notice warned the campaign could expose organizers to defamation, unfair competition, and tortious-interference claims while demanding preservation of communications, funding records, and analytics data.

Featured image: FairPredicts.com

The post Kalshi fires back at FairPredicts with cease-and-desist over ‘Kalshi Lies’ campaign appeared first on ReadWrite.

Kalshi sued Rhode Island officials on Thursday (May 21), accusing the state of trying to block its federally regulated prediction market business through threatened gambling enforcement. The complaint landed in the U.S. District Court for the District of Rhode Island and immediately escalated a widening national fight over sports-related event contracts.

The lawsuit names Rhode Island Attorney General Peter F. Neronha, Division of State Lottery Director Mark Furcolo, and Gaming and Athletics Administrator Christina Tobiasz. Kalshi said state officials appeared ready to move against the company over contracts traded on its federally regulated exchange.

“Rhode Island’s stated intent to prohibit Kalshi from operating intrudes upon the federal framework that Congress established for regulating the trading of derivatives on federally designated exchanges,” the company said in its complaint.

Kalshi runs a prediction market platform regulated by the Commodity Futures Trading Commission, or CFTC. Customers trade contracts tied to election outcomes, economic data, weather events, and sports results. The company argues those products are federally regulated derivatives rather than illegal gambling activity under state law.

According to the complaint, tensions rose during a May 20 meeting between Kalshi representatives and Rhode Island officials. Kalshi said the attorney general’s office questioned whether the exchange complied with state gaming laws and declined to promise advance warning before enforcement action.

“When Kalshi sought assurances that the Rhode Island Attorney General did not intend to bring an enforcement action against Kalshi, the Attorney General made clear that Kalshi would not receive any advanced notice before the state filed an enforcement action against the company,” the lawsuit states.

Kalshi and Rhode Island clash over federal-state jurisdiction

Only hours after Kalshi filed its case, Neronha announced Rhode Island had separately sued Kalshi and Polymarket in state court. The attorney general argued the companies’ sports event contracts are effectively unlicensed sports betting products under Rhode Island law.

“There is no substantive difference between sports betting and ‘events contracts’ in this context; Kalshi and Polymarket know that, and we know that. 

“The problem here is that Rhode Island State law heavily regulates gambling, for good reason, and we allege that Kalshi and Polymarket are evading our laws.”

The attorney general also linked the platforms to lost state revenue and addiction concerns. “While these private companies continue to profit exponentially off hard-working people, the State’s third largest revenue stream is detrimentally affected, which means less money to fund critical parts of programs that serve Rhode Islanders every day. Further, we allege that these platforms offer those susceptible to problem gambling unfettered access, increasing the potential for the devastating effects of gambling addiction.”

Rhode Island joins several states challenging prediction markets. Wisconsin recently sued Kalshi and Robinhood over alleged illegal sports betting operations, while Kalshi also targeted Montana regulators over sports contracts. At the same time, federal judges in Arizona and other states have recently sided with Kalshi, finding the company was likely protected from state gambling enforcement because the CFTC oversees its exchange operations.

Kalshi is seeking declaratory relief along with temporary, preliminary, and permanent injunctions blocking Rhode Island officials from enforcing state gambling laws against the company.

Featured image: Kalshi / Canva

The post Kalshi battles Rhode Island officials as prediction markets face state challenges appeared first on ReadWrite.

The Commodity Futures Trading Commission (CFTC) and the National Hockey League have signed a memorandum of understanding designed to tighten coordination around professional hockey integrity and the fast-growing market for sports event contracts tied to NHL games.

The agreement creates a formal structure for information sharing and consultation between the federal derivatives regulator and the league. Both sides said the arrangement is meant to support confidence in NHL competition while also helping regulators monitor trading activity connected to hockey-related event contracts listed on CFTC-regulated exchanges.

The CFTC announced the agreement in a press release and said the deal establishes designated points of contact for handling integrity concerns involving professional hockey and prediction-style markets connected to the sport.

“I’m proud the CFTC and NHL have officially signed an MOU, furthering the agency’s commitment to improve data sharing between professional sports leagues and the Commission,” said CFTC Chairman Michael S. Selig. 

“This agreement is another step toward safeguarding the integrity of sports and protecting market participants in prediction markets from insider trading, fraud, and other abuses. I applaud NHL Commissioner Bettman for collaborating with the CFTC and taking a leading role in protecting the integrity of professional hockey in our markets.”

CFTC NHL partnership comes amid calls for greater prediction market oversight

The deal arrives as sports prediction markets have drawn heavier political and regulatory attention. Companies including Kalshi and Polymarket have pushed deeper into sports-related event contracts, triggering debate over whether those offerings resemble regulated derivatives products or traditional sports wagering.

Recent disputes involving tribal gaming sovereignty and prediction market expansion have added pressure on regulators to clarify how these contracts should operate. The CFTC has also faced calls from lawmakers to establish stronger oversight standards after several major sports leagues publicly backed better gambling integrity protections following betting controversies tied to professional athletics.

The NHL has already moved closer to prediction market operators in recent months. Earlier this year, the Chicago Blackhawks announced a partnership connected to Kalshi.

Under the memorandum, representatives from both organizations may meet whenever issues arise that could affect “the integrity of professional hockey and the event contract markets related thereto.” The agreement also calls for timely responses to information requests while limiting unnecessary administrative burdens.

The document contains detailed confidentiality rules governing any material exchanged between the organizations. Information provided by the NHL may only be used by the CFTC in connection with its responsibilities under the Commodity Exchange Act, while the NHL can only use CFTC information for league integrity purposes.

“Integrity has always been and remains paramount to the NHL and fundamental to the trust our fans and partners place in our game,” said NHL Commissioner Gary Bettman. “Our agreement with the CFTC enhances the comprehensive integrity monitoring systems already in place and strengthens our ability to identify, deter, and address potential risks. This MOU reflects a shared commitment to transparency, oversight and protecting the integrity of the game.”

Featured image: CFTC / Canva

The post CFTC NHL agreement expands oversight protecting hockey prediction markets appeared first on ReadWrite.

A San Francisco Superior Court judge has temporarily stopped California Attorney General Rob Bonta’s proposed cardroom regulations from taking effect, handing an early victory to cardroom operators fighting the state over blackjack-style games and other popular offerings.

Judge Richard Darwin issued a preliminary injunction that freezes enforcement while the California Gaming Association’s lawsuit continues. The association said the court determined the Bureau of Gambling Control likely exceeded its authority by approving rules that could effectively outlaw games cardrooms have offered for years.

According to the association, the judge also found “clear and convincing evidence” that enforcing the regulations would cause serious and irreversible damage to both gambling businesses and the cities that rely on their tax revenue.

The legal fight has become one of the biggest gambling disputes in California, where tribal casinos and licensed cardrooms have spent years battling over the limits of state gaming law. Tribal groups backed the proposed regulations and argued they were necessary to rein in games they believe illegally resemble casino-style blackjack.

Attorney General Bonta’s California cardroom rules blocked as economic concerns take center stage

Cardroom operators argue the proposed rules would dramatically reshape the industry by removing blackjack-style games and placing tighter restrictions on longstanding table games already monitored by state regulators. The California Gaming Association said the attorney general’s own economic review projected losses exceeding half of statewide cardroom revenue if the regulations were enforced.

Industry representatives say those losses could trigger widespread layoffs while reducing local funding tied to gaming taxes. Cities across California depend on cardroom revenue to support police departments, fire services, parks, and youth programs.

This has unfolded alongside separate legal battles involving California tribes seeking greater authority to challenge cardroom operations in court. Recent court rulings blocked some tribal attempts to directly sue cardrooms.

Gaming law expert I. Nelson Rose previously told ReadWrite that California’s crackdown on blackjack-style games could carry major consequences for the industry because those games generate significant customer traffic and revenue for cardrooms. Operators say eliminating them would threaten businesses that have legally operated under multiple administrations for decades.

The California Gaming Association said labor groups, local officials, and city governments repeatedly warned regulators about the economic fallout before the rules were finalized. The organization also said more than 1,700 public comments opposing the changes were submitted during the rulemaking process.

Kyle Kirkland, president of the California Gaming Association, welcomed the ruling in a statement following the decision.

“Today’s ruling validates what we have said all along: Attorney General Bonta and the Bureau of Gambling Control exceeded their authority by attempting to rewrite California gaming law. These regulations were driven by pressure from powerful tribal gaming interests that have long sought to eliminate lawful competition from California’s cardrooms,” Kirkland said.

“Cardrooms have lawfully operated the games targeted by these regulations for decades. Our games support thousands of middle-class jobs and generate critical revenue for communities across California. Instead of protecting those communities, Attorney General Bonta chose to advance regulations that threaten local economies, public safety funding, and the livelihoods of thousands of Californians,” he added.

Kirkland also called the ruling “an important step towards preventing severe and unnecessary harm to cities, workers, and small businesses that depend on the cardroom industry.”

Featured image: Canva / California State Assembly

The post Judge temporarily blocks California cardroom rules backed by Attorney General Bonta appeared first on ReadWrite.

Three Guam residents tied to a charitable bingo operation were sentenced in federal court after prosecutors said they siphoned more than $10 million away from children needing medical treatment and used the money for themselves.

The convictions stem from the Guam Shrine Club’s Hafa Adai Bingo parlor in Tamuning, which authorities said operated for years while falsely presenting itself as a fundraiser supporting travel for children seeking care at Shriners Hospital for Children in Hawaii.

Jose Arthur “Art” Chan Jr., 77, received a 60-month prison sentence on May 12. His wife, Christine Chan, 64, was sentenced the same day to 70 months behind bars. Michael Marasigan, 54, was sentenced in absentia on May 18 to 262 months in prison after authorities said he fled before sentencing.

Federal prosecutors said Marasigan traveled to South Korea while awaiting sentencing, prompting the FBI to continue searching for him as a fugitive. Court records showed he failed to appear for scheduled proceedings before the judge imposed the sentence without him present.

A federal jury convicted all three defendants in May 2025 on charges including conspiracy to operate an illegal gambling business, conspiracy to commit wire fraud and money laundering conspiracy. Christine Chan and Marasigan were also found guilty on additional money laundering counts.

Officials detail years-long scheme bingo fraud in Guam

According to prosecutors, the operation ran from March 2015 through the end of 2021 and generated roughly $34 million in gross bingo revenue. Investigators said more than $10.7 million in net proceeds was diverted for personal spending instead of charitable work connected to the Shriners organization.

Evidence presented during trial showed the bingo hall promoted itself as helping pay airfare and travel costs for children and guardians traveling from Guam to Hawaii for medical treatment. Prosecutors argued that players and donors believed their spending supported sick children when most of the money never reached that purpose.

Federal records showed only about $140,378 in bingo proceeds from 2015 through 2020 went toward payments tied to the charitable mission. Prosecutors said none of the proceeds collected in 2021 supported the organization’s stated cause.

The court also ordered millions of dollars in restitution and forfeiture. Marasigan alone was ordered to forfeit more than $5.8 million.

“These defendants traded on the reputation of the Shriners Children’s healthcare system to perpetrate their multi-million-dollar fraud,” U.S. Attorney Shawn N. Anderson said in a statement. “It was an unconscionable means to personal gain. We will make every effort to enforce restitution and ensure that Marasigan and the Chans spend every day of their sentences in federal prison.”

Other defendants who cooperated with prosecutors, including Juanita Capulong, Minda San Nicolas, Alfredo Leon Guerrero and Won Sun Min, received probationary or supervised release sentences after pleading guilty.

Featured image: Screenshot via KUAM News

The post Guam bingo operators sentenced over multimillion-dollar charity gambling fraud targeting children appeared first on ReadWrite.

The Lumbee Tribe of North Carolina has rolled out a new website aimed at helping tribal citizens understand a proposed gaming and economic development amendment before a June 23 special election. The site, LumbeesChoose.com, is now being promoted across the tribe’s official communication channels as leaders push to increase awareness ahead of the vote.

Tribal officials say the website was created to give enrolled members a clearer picture of what the amendment would do and how it could shape future tribal business and government operations. Visitors can review explanations of the proposal, election details, and information tied to possible future gaming projects.

Opportunities the gaming amendment would create for the Lumbee Tribe as new website rolled out

According to information posted on the website, the amendment would establish a governmental structure to oversee gaming operations and economic development projects if tribal citizens eventually approve gaming initiatives in the future. The site says the framework is intended to create “checks and balances” while adding accountability measures connected to any future gaming enterprise.

It also explains how the tribe’s federal recognition changed its legal standing. After decades of lobbying and advocacy, the Lumbee Tribe secured full federal recognition in 2025, which opened access to opportunities available under the Indian Gaming Regulatory Act, including the possibility of pursuing tribal gaming projects under federal law.

The launch of the information campaign arrives as discussion continues around possible casino development in southeastern North Carolina. We previously noted that tribal leaders have explored gaming-related economic opportunities since recognition became official. One proposal reportedly centers on land near Interstate 95 in Robeson County, an area viewed as attractive because of heavy tourism traffic and regional travel access. 

The site reports: “South Carolina is considering allowing commercial casinos along I-95, including in Dillon County near South of the Border. If that happens, a competing casino could be built less than 10 miles from the proposed Lumbee site, reducing the Tribe’s economic opportunity and competitive advantage.”

ReadWrite also reported that the Lumbee Tribal Council overwhelmingly approved placing the amendment before voters earlier this year. Tribal leadership framed the move as a way to let citizens decide whether the tribe should move toward a formal governance system tied to future gaming activity.

Another report stated that the Lumbee Tribe could become a major new force in North Carolina gaming if voters approve the amendment and development plans continue moving forward. The issue has gained attention beyond tribal communities because North Carolina lawmakers have debated broader casino expansion proposals for several years, though multiple efforts stalled in the legislature.

With federal recognition now secured, the Lumbee Tribe has new authority to independently explore gaming opportunities under federal regulations. Details tied to the proposed Lumbee Dark Water Resort, a large-scale development vision that combines gaming, hospitality, entertainment, and cultural attractions, have already been outlined.

According to materials published on the site, the master plan spans more than 200 acres and includes multiple hotels, a waterpark, convention and entertainment facilities, retail space, golf courses, museums, and gaming venues. Project descriptions say developers intend to balance tourism and economic growth with environmental considerations through green space preservation, indigenous landscaping, solar energy integration, and community-focused design. Plans highlighted on the site also reference a future 10,000- to 15,000-seat convention and entertainment center, a high-rise leisure hotel, family-oriented attractions, and expanded gaming areas tied to long-term economic development goals.

The tribe’s official website currently directs visitors to LumbeesChoose.com through prominent banners urging members to “Learn about June 23 Vote.”

Tribal leaders continue encouraging citizens to study the amendment closely before ballots are cast in the special election later this summer.

Featured image: Canva

The post New Lumbee website explains upcoming tribal gaming amendment vote before June appeared first on ReadWrite.

Pennsylvania gaming regulators handed down $180,000 in fines Wednesday during the Gaming Control Board’s monthly public meeting, targeting several operators over underage gambling access, licensing problems and failures tied to online account protections.

Greenwood Gaming and Entertainment received the largest combined penalties after regulators approved two separate $40,000 fines against the company. State officials said one case involved three incidents in which underage patrons gained access to casino gaming floors and were able to gamble on slot machines or table games.

The second Greenwood penalty centered on the company’s betParx online platform. According to the board, five employees who did not hold the proper licenses were allowed to access personal identifying information connected to iGaming account holders.

Wind Creek Bethlehem, LLC was separately fined $50,000 after regulators said the casino operator failed to properly follow Know Your Customer procedures. The board said those shortcomings eventually contributed to fraudulent withdrawals exceeding $92,000 from online gambling accounts.

Another $50,000 penalty was issued against YFS Sub, LLC, a subsidiary of Yahoo Fantasy Sports. Regulators said the company failed to notify the state and obtain approval related to a change in control involving its gaming license.

The penalties were finalized through consent agreements presented during the Harrisburg meeting by the board’s Office of Enforcement Counsel.

Pennsylvania gaming board expands involuntary exclusion lists as it issues fines

The Gaming Control Board also voted to add eight more people to Pennsylvania’s involuntary exclusion lists, continuing a wider enforcement trend the agency has stressed in recent months. Anyone placed on the lists is barred from gambling at the state’s casinos, using regulated online betting sites or participating in gambling activities at video gaming terminal locations.

State regulators have increasingly used the exclusion lists in cases involving extreme or repeated conduct inside casinos. Earlier enforcement actions highlighted by the board included incidents involving people leaving children unattended at casinos while gambling and individuals accused of disruptive or abusive behavior tied to gaming activity.

With the latest additions, the number of people on Pennsylvania’s involuntary exclusion lists has climbed to 1,463, according to the board. The cases were reviewed by both the Office of Chief Counsel and the Office of Enforcement Counsel.

The Pennsylvania Gaming Control Board oversees the state’s casinos, online gaming platforms, sports betting operations, fantasy sports contests and video gaming terminals located at approved truck stops. Pennsylvania’s gaming market now includes 18 casinos across several categories, including racetrack casinos, stand-alone properties, resort casinos and mini-casinos.

The board said gaming operations generated nearly $3 billion in taxes and fees for the state during 2026. Regulators also said copies of the approved consent agreements are available through the agency’s Office of Communications ahead of the board’s next public meeting scheduled for June 17 in Harrisburg.

Featured image: Canva

The post Pennsylvania regulators approve $180K in gaming fines while expanding involuntary exclusion lists appeared first on ReadWrite.

Iowa Governor Kim Reynolds has approved a wide-ranging gambling bill that strengthens enforcement against unlicensed sweepstakes operators while reshaping how the state handles tax withholding on gambling winnings.

Reynolds signed Senate File 2289 on May 15, giving the Iowa Racing and Gaming Commission expanded authority to pursue unauthorized betting and sweepstakes businesses operating in the state. It also updates financial reporting rules tied to gambling payouts and raises reimbursement limits for commission members.

In a letter sent to Secretary of State Paul Pate, Reynolds wrote, “I hereby transmit: Senate File 2289, an Act relating to matters under the purview of the department of inspections, appeals, and licensing, and including effective date provisions.” She added, “The above Senate File is hereby approved on this date.”

The legislation allows state regulators to issue enforcement actions against companies or individuals offering gambling products in Iowa without proper licensing approval. This applies to sports wagering, fantasy sports contests, pari-mutuel wagering, advance deposit wagering, and sweepstakes-style gambling platforms.

One section of the legislation states the commission may take action “including but not limited to issuing cease and desist orders and obtaining injunctive relief against a person offering games of chance, gambling, sports wagering, or illegal sweepstakes in this state without holding an appropriate license issued by the commission or otherwise being specifically authorized by law.”

Iowa anti-sweepstakes bill comes amid national scrutiny

The bill follows growing debate over online sweepstakes casinos and other gambling products operating outside traditional regulatory systems. We previously reported that Iowa lawmakers advanced the proposal after concerns that unlicensed operators were reaching consumers without following the same standards required of state-approved sportsbooks and casinos.

Lawmakers in other states have also started taking similar action. In Maine, legislators recently approved a bill banning online sweepstakes casinos entirely.

Iowa’s new law also increases penalties tied to unlawful sports wagering activity. People convicted of certain betting violations may now face permanent exclusion from sports wagering, advance deposit sports wagering, excursion gambling boats, and licensed gambling facilities overseen by the commission.

Another section rewrites Iowa’s gambling withholding requirements by removing older fixed-dollar thresholds and connecting withholding obligations directly to federal reporting standards.

Under the updated language, state income tax “shall be withheld” on certain gambling winnings when the winnings are “in an amount sufficient to require that an information return be filed pursuant to 26 U.S.C. §6041.”

A fiscal analysis released May 20 projected the changes would remain revenue neutral overall, though some tax collections could arrive later than before. Analysts estimated Iowa’s General Fund may temporarily lose $7.8 million during fiscal year 2027 before that money shifts into fiscal year 2028 collections.

Featured image: Governor Kim Reynolds via Facebook

The post Gov. Reynolds signs Iowa sweepstakes and gambling crackdown expanding enforcement and revising tax withholding appeared first on ReadWrite.

A Nevada teenager has filed a federal lawsuit against Roblox, Epic Games, Microsoft and Mojang, accusing the companies of building video games that intentionally keep children playing and spending money through psychologically manipulative systems.

The case was filed in the U.S. District Court for the Eastern District of Pennsylvania by a minor identified as K.R., acting through her parent and guardian, Krystle Statler. The complaint focuses on Roblox, Fortnite and Minecraft, arguing the companies relied on behavioral reinforcement techniques commonly associated with gambling and addiction research.

“Rewards act as positive reinforcement, encouraging gamers to keep playing,” the complaint states, alleging that in-game rewards trigger dopamine releases in the brain that reinforce repeated behavior.

Attorneys for the teenager argue the games use progression loops, social competition, unpredictable rewards and constant engagement prompts to encourage long sessions and repeated microtransaction purchases. The lawsuit claims the systems were specifically designed to maximize profits from younger players.

According to the filing, K.R. started gaming at around six years old and later spent large amounts of time using phones, consoles and computers to play Minecraft, Roblox, Fortnite and similar titles. The complaint says her gaming behavior became compulsive during her teenage years.

The lawsuit alleges she experienced anxiety, depression, suicidal ideation, withdrawal symptoms, digestive problems, social isolation and worsening school performance. It also claims she required therapy and struggled with normal daily activities because of excessive gaming.

Claims target Roblox and addictive gaming design practices

The lawsuit arrives as regulators and courts continue examining whether some gaming systems resemble online gambling. The complaint repeatedly compares gaming reward mechanics with gambling-style reinforcement systems and cites studies alleging that games can trigger dopamine responses “similar in magnitude to that experienced by substance abuse or gambling.”

The filing also points to the growing overlap between gaming platforms and gambling-style activity involving minors. Earlier reporting from ReadWrite detailed concerns that illegal online casinos were using compromised Roblox accounts to attract children to gambling sites. Separate reports also revealed Minecraft players creating virtual slot machines inside multiplayer servers, raising additional concerns about gambling mechanics appearing inside youth-oriented games.

The case also follows other legal fights over loot boxes and randomized rewards. We previously reported on a federal class-action lawsuit against Valve that argued loot boxes functioned as illegal gambling products because players spend money on randomized digital items with uncertain value.

K.R.’s lawsuit argues companies failed to provide meaningful safeguards despite knowing children made up a substantial share of their player bases. It specifically accuses Microsoft and Mojang of promoting Minecraft as educational and child-friendly while failing to implement stronger parental controls, age-verification measures and protections against excessive playtime.

The teenager is seeking damages for alleged emotional, neurological, physical and economic harm. The lawsuit requests a jury trial and claims damages exceeding $75,000.

Featured image: Canva

The post Teen sues Roblox, Fortnite, and Minecraft firms over alleged addictive gaming design appeared first on ReadWrite.

A Senate panel spent hours Wednesday (May 20) hearing whether America’s fast-growing sports betting industry is outpacing the rules meant to control it. The Commerce, Science, and Transportation Committee’s hearing, titled “No Sure Bets: Protecting Sports Integrity in America,” brought together regulators, gaming executives, integrity specialists, and lawmakers who disagreed sharply over how prediction markets should be treated under federal law.

The session took place inside the Russell Senate Office Building and was led by Sen. Marsha Blackburn through the Subcommittee on Consumer Protection, Technology, and Data Privacy. Much of the discussion centered on prediction-market platforms that now offer contracts tied to sporting events nationwide under commodities regulations instead of traditional state gaming laws.

Several senators questioned whether those companies are effectively acting like sportsbooks while avoiding many of the restrictions imposed on licensed gambling operators.

AGA warns prediction markets are ‘national sportsbooks’ during Senate hearing

Bill Miller, president and chief executive officer of the American Gaming Association, delivered some of the hearing’s strongest criticism toward prediction-market operators. He argued that companies offering sports-event contracts have crossed into sports wagering while sidestepping state oversight systems built after the Supreme Court struck down PASPA in 2018.

During his testimony, Miller stated that “so-called prediction market platforms jeopardize the integrity of sports” and warned that these companies are effectively operating national sportsbooks without complying with the same oversight standards imposed on licensed gaming operators.

Miller told lawmakers the Commodity Futures Trading Commission was never designed to supervise betting on sporting events. He said Congress created the agency to oversee economically important commodities markets, not “Monday Night Football” or college basketball tournaments.

He also pointed to legal arguments previously made by Kalshi, acknowledging that Congress did not intend derivative exchanges to become sports betting marketplaces. At the same time, he noted that the company has continued scaling offerings connected to major events, including the Super Bowl and March Madness.

According to Miller, sports contracts now make up most trading activity on some prediction platforms. He warned senators that those businesses bypass rules involving taxation, responsible gaming protections, geolocation requirements, anti-money laundering standards, and integrity monitoring systems that state-regulated sportsbooks must follow.

Miller also pointed out age concerns. In many states, traditional sportsbooks require customers to be at least 21 years old, while some prediction-market platforms permit participation beginning at 18.

Senate hearing debates whether prediction markets constitute gambling

Former House Financial Services Committee Chairman Patrick McHenry defended the industry while testifying for the Coalition for Prediction Markets, whose members include Kalshi, Robinhood, Coinbase, Crypto.com, and Underdog.

McHenry argued prediction markets differ fundamentally from casinos and sportsbooks because users trade against one another instead of betting directly against a house operator. He described the platforms as exchanges driven by participation, liquidity, and information flow rather than customer losses.

He told senators that coalition members already operate under federal oversight through the CFTC and comply with anti-money laundering standards, trade surveillance systems, know-your-customer rules, and market manipulation safeguards. McHenry also said prediction-market operators prohibit athletes, coaches, referees, and other insiders from participating in markets tied to competitions they could influence.

Tensions escalated when Sen. John Hickenlooper challenged McHenry over advertising practices tied to prediction-market companies. Hickenlooper referenced a promotional campaign involving a TikTok influencer who claimed winnings from Kalshi helped cover two years of rent after struggling financially.

The Colorado senator argued that marketing sports-event contracts as potentially “financially life-changing tools for average people” risks misleading vulnerable users into believing they can reliably profit from uncertain outcomes.

Hickenlooper additionally raised concerns about reports that younger social media influencers may have promoted betting-style products to teenagers. He warned lawmakers that minors are “easily manipulable” and questioned whether existing oversight structures are sufficient.

McHenry defended the CFTC’s authority, describing the regulator as “a cop on the beat” capable of investigating fraud and manipulation. Hickenlooper responded that the agency lacks meaningful experience regulating sports wagering products and criticized a self-certification process that can permit contracts to launch within a single business day.

Integrity systems become central focus

Scott Sadin, co-founder and co-chief executive officer of Integrity Compliance 360, told senators that the integrity-monitoring industry has expanded dramatically since legal sports betting spread across the country.

Sadin explained that successful oversight now depends on constant coordination among sportsbooks, sports leagues, regulators, law enforcement agencies, and independent monitoring firms. He said suspicious betting patterns and potential insider activity are already being identified through real-time cooperation across the industry.

According to Sadin, IC360 works with more than 200 organizations worldwide, including every major U.S. professional sports league, college athletic conferences, sportsbooks, regulators, and prediction-market exchanges.

He described the company as the “connective tissue” linking those groups together during investigations and monitoring efforts.

Sadin also outlined the technology behind modern integrity surveillance. Monitoring systems review transaction-level betting data, odds movements, officiating trends, and player availability information to identify what he called “correlated abnormalities” that may signal manipulation or unusual activity.

He told lawmakers the existing system has proven effective but must continue adapting as wagering technology evolves rapidly.

State regulators outline consumer protections

Mary Beth Thomas, executive director of the Tennessee Sports Wagering Council, used her testimony to showcase how one state has approached online sports betting regulation.

Tennessee allows only online wagering and has adopted several restrictions intended to reduce integrity risks. Thomas said the state bans betting on individual college athlete proposition wagers and prohibits live prop betting involving college sports.

The state also bars wagers tied to injuries, penalties, or random chance elements during games.

Thomas described detailed identity-verification rules designed to prevent underage gambling, proxy betting, and fraud. Tennessee sportsbooks must use multifactor authentication, secondary identification reviews, and strict know-your-customer procedures before allowing customers to place bets.

She noted that Tennessee does not permit sportsbooks to accept credit cards. Bettors instead must fund accounts using bank transfers, debit cards, or comparable cash-equivalent methods.

Thomas additionally drew attention to the state’s self-exclusion system, which requires operators to suspend gambling accounts and stop marketing communications for users who voluntarily opt out. Sportsbooks must also report suspicious betting activity immediately to regulators and integrity-monitoring companies.

Beyond regulatory issues, lawmakers also heard warnings about gambling addiction and mental health risks tied to nonstop online betting opportunities. Written testimony submitted to the committee argued that microbetting, AI-driven wagering products, and constant smartphone access could intensify financial distress and compulsive gambling behavior, especially among younger users.

By the end of the hearing, senators from both parties agreed that sports wagering has entered a new phase following years of accelerated growth, even as major disagreements remain over how prediction markets should be regulated.

Hickenlooper closed by stating the real-world consequences tied to gambling proliferation and the need for lawmakers to act quickly. “I feel that all five of you are willing and engaged to fix some of these serious, glaring problems, and look forward to working with the chair to provide us a sense of urgency that these are real people’s lives that are being negatively impacted right now.”

Blackburn said the discussion provided a starting point for future legislative conversations involving both federal oversight and state authority. “This allows us to start to build where we should move in regulation and also looking at the division between what should be federal and what should be state, and preserving those states’ rights in order to move forward with this.”

Featured image: Screenshot via C-SPAN

The post Senators clash with industry officials over sports betting expansion and prediction markets during hearing appeared first on ReadWrite.

Illegal online gambling operations across Southeast Asia have grown into a major driver behind global scam networks now stealing billions from Americans each year, according to the chairman of the House Select Committee on China.

At a Capitol Hill hearing Tuesday (May 19), committee chairman John Moolenaar said Chinese-linked criminal organizations originally built much of the region’s underground economy around online gambling businesses before expanding into fraud, money laundering, cybercrime, and human trafficking.

“Our nation confronts one of the fastest-growing and largest financial threats facing Americans: the industrial-scale scam and fraud ecosystem fueled by China and enabled by corruption, weak governance, and illicit finance in Southeast Asia,” Moolenaar said.

Lawmakers used the hearing, titled “Crime, Corruption, and Power: The Rise of CCP-linked Scam Networks Targeting Americans and Threatening U.S. Security,” to examine how gambling compounds in Cambodia and Myanmar transformed into international fraud centers targeting victims worldwide.

Investigators told the committee that Chinese crackdowns on domestic gambling and online fraud pushed many criminal groups into Southeast Asia, where corruption and weak oversight allowed operations to expand quickly. Networks that once focused largely on sports betting and casino-style gambling now run elaborate cryptocurrency scams, romance frauds, and fake investment schemes aimed heavily at Americans.

Southeast Asia illegal gambling scam networks using payment systems to target Americans

The committee also released a report describing the scam compounds as part of a broader criminal infrastructure supported by underground payment systems, illicit finance channels, and cryptocurrency laundering operations. Moolenaar said Americans lost at least $10 billion to online scams during 2024 alone.

Lawmakers pointed to recent international enforcement actions as evidence of how deeply connected gambling and fraud operations have become. British and American authorities recently dismantled a $15 billion illegal gambling and crypto scam network that investigators said moved money through digital assets and offshore payment systems tied to organized criminal groups.

Separate investigations and media reports have also examined companies such as the Lixin Group, which has faced allegations tied to illegal online gambling operations connected to Southeast Asian betting platforms. Analysts say gambling businesses operating in the region helped create financial channels later exploited by scam syndicates.

The committee’s investigation highlighted what lawmakers called evidence linking a Chinese state-owned company to construction work at scam compounds through contracts with criminal organizations. While lawmakers stopped short of accusing Beijing of directly running the operations, Moolenaar argued Chinese authorities have not done enough to dismantle them.

Human trafficking concerns remain central to the investigation. According to lawmakers, many workers are lured through fake job offers before having passports confiscated and being forced into online fraud schemes under threats or abuse.

Moolenaar urged Congress to pass the Dismantle Foreign Scam Syndicates Act, saying lawmakers must treat the growing scam economy as both a criminal enterprise and a broader national security threat.

Featured image: Select Committee on China via X

The post House panel warns illegal gambling fuels scam networks across Southeast Asia targeting Americans appeared first on ReadWrite.

Formula 1 is moving deeper into the American betting market after naming FanDuel an Official Betting Operator through a new multi-year agreement. The partnership marks the first time the racing series has signed a sportsbook operator in the United States, adding another major step to Formula 1’s growing commercial push across North America.

FanDuel, Flutter’s online gaming brand in the region, will integrate sportsbook odds into Formula 1’s age-gated Betting Guide as well as betting-focused editorial coverage appearing on the sport’s website and mobile app. The companies also said they will develop responsible gaming content aimed directly at Formula 1 audiences.

The agreement builds on Formula 1’s effort to make live race data more useful for sportsbooks and bettors. In recent years, the series has explored new data-driven betting products and expanded relationships designed to increase wagering opportunities during race weekends. Formula 1 has also worked with Alt Sports Data to distribute official betting data and create markets tied to in-race action.

Formula 1 expands its betting arm through FanDuel partnership amid push into the US market

Sportsbooks have increasingly viewed Formula 1 as one of the fastest-growing international sports in the United States. Industry analysts have pointed to expanding television audiences, the popularity of Netflix’s “Drive to Survive,” and the addition of races in Miami, Las Vegas, and Austin as major drivers behind betting growth. Operators have also leaned into live betting because Formula 1 produces a constant stream of timing, tire, weather, and strategy information throughout each race.

“Being named an Official Betting Operator of Formula 1 marks an exciting step forward as we enhance our sportsbook product to deliver more interactive experiences for fans,” said Karol Corcoran, Managing Director of FanDuel Sportsbook. “Formula 1 generates an incredible amount of real-time data, and our platform is built to turn that into engaging betting opportunities for fans. This partnership will allow us to deliver even more immersive, data-driven experiences throughout the race weekend.”

Eligible users already can place wagers on race winners, podium finishes, and head-to-head driver matchups. FanDuel said additional betting formats tied to the Formula 1 season are expected later this year as sportsbooks continue experimenting with more interactive race markets.

“We’re delighted to welcome FanDuel as our new Official Betting Operator in the United States and Canada – markets that continue to increase their love and engagement with Formula 1,” said Jonny Haworth, Director of Commercial Partnerships, Formula 1. “As sports betting becomes an increasing component with how fans, especially in the US, interact with sport, it’s vital we have a strong and well-placed partner to deliver our strategy and fuel our momentum across the market.

With tens of millions of fans across the country, FanDuel is yet another avenue that eligible fans can enjoy and experience the thrill of Formula 1.”

Featured image: Flutter Entertainment via press release

The post FanDuel joins Formula 1 as betting partnership expands across America appeared first on ReadWrite.