SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Topics 7/2/25:
- Massachusetts Cracks Down on Offshore Sportsbooks With Cease-and-Desist Orders
- NCAA Proposal to Loosen Sports Betting Rules Draws Backlash
- Rhode Island House Halts Sports Betting Expansion, Preserving IGT Monopoly
- New Zealand Bans Offshore Sportsbooks to Protect Local Racing Industry
- California AG Poised to Ban All Daily Fantasy Sports Contests Statewide
- Virginia Lottery Launches First-Ever Virtual Sports Games via Aristocrat-Inspired Partnership
- Pistons’ Malik Beasley Under Federal Investigation Over NBA Gambling Allegations
- Arizona Issues Cease-and-Desist Orders to Seven Illegal Gambling Operators
Massachusetts Cracks Down on Offshore Sportsbooks With Cease-and-Desist Orders
Massachusetts Attorney General Andrea Campbell has issued cease-and-desist letters to offshore sportsbooks BetOnline.ag and SportsBetting.ag for illegally operating without a license. Based in Panama, both platforms were accused of offering casino games and sports betting services to Massachusetts residents while using marketing tactics that misleadingly suggested U.S. regulation. The letters threaten legal action, including civil fines up to $5,000 per violation. This move aligns with the state’s broader strategy to protect its growing legal gambling market, which hit $7.4 billion in handle in 2024. Massachusetts legislators are also considering legislation to expand into online casinos. The enforcement effort comes as part of a larger initiative to combat unregulated gambling and includes AG Campbell’s focus on preventing youth gambling harm through educational coalitions.
NCAA Proposal to Loosen Sports Betting Rules Draws Backlash
The NCAA is under fire after the Division I Council proposed a rule that would permit student-athletes and athletic staff to place bets on professional sports, signaling a potential shift away from its long-standing zero-tolerance policy. The proposal, which would still prohibit betting on college sports, could take effect in October if passed by all divisions. Critics argue the rule change blurs the line between amateur and professional athletics and could increase the risk of gambling addiction, particularly among young athletes with NIL money. The NCAA cites changing national attitudes and the expansion of legal sports betting as motivations for the proposal, but opponents warn that without safeguards, education, and addiction prevention, the move could backfire and erode the integrity of college sports.
Rhode Island House Halts Sports Betting Expansion, Preserving IGT Monopoly
Rhode Island’s attempt to expand its sports betting market stalled after the House chose not to vote on Senate Bill 748 before adjourning. The bill, which passed the Senate 30-3, would have added 2 to 5 new sportsbook licenses, but House lawmakers cited concerns over violating the state’s existing exclusivity contract with IGT, which runs through 2026. The expansion was inspired by a Spectrum Gaming study suggesting market growth through competition. However, Speaker K. Joseph Shekarchi and others argued that moving forward now could result in costly legal battles. While the bill did not propose changing Rhode Island’s 51% tax rate—among the highest in the nation—tax policy and IGT’s contract terms are expected to be key points of contention if expansion is revisited in 2026.
New Zealand Bans Offshore Sportsbooks to Protect Local Racing Industry
New Zealand has enacted a significant amendment to the Racing Industry Act 2020, effectively banning offshore sportsbooks from accepting bets from its residents as of June 28, 2025. This move solidifies TAB New Zealand’s exclusive control over the country’s legal betting market and enhances its 25-year partnership with Entain. Officials estimate offshore operators were draining NZ$180–200 million annually from the country, money now expected to be redirected into domestic sports and racing programs. Under the new framework, Entain will contribute NZ$100 million to TAB NZ, with NZ$20 million going to Sport NZ and the rest allocated across various racing codes. The Department of Internal Affairs has notified foreign operators to begin withdrawing, and expects compliance in line with responsible gambling practices.
California AG Poised to Ban All Daily Fantasy Sports Contests Statewide
California Attorney General Rob Bonta is reportedly preparing to issue a sweeping ban on all daily fantasy sports (DFS) contests in the state, a decision that could come as early as July 3. The move follows a legal review initiated in 2023 at the request of former Senator Scott Wilk and has generated sharp opposition from operators like Underdog and PrizePicks, as well as the Coalition for Fantasy Sports, which argues that 75% of California voters support fantasy sports and that the issue should be decided democratically. Tribal gaming groups have also weighed in, submitting letters opposing legalization efforts and branding pick’em-style DFS as illegal betting. Meanwhile, proposed DFS legislation has stalled amid legal uncertainty, and critics warn that a full ban could drive consumers to offshore or unregulated alternatives. The outcome is set to reshape the future of fantasy gaming in the nation’s most populous state, just as legal sports betting remains stalled until at least 2028.
Virginia Lottery Launches First-Ever Virtual Sports Games via Aristocrat-Inspired Partnership
The Virginia Lottery has introduced computer-generated Virtual Sports draw games to its iLottery platform, marking the first such deployment within a U.S. lottery system. Branded as “VSports,” the games—featuring virtual football, basketball, and horse racing—are developed by Inspired Entertainment and delivered through a partnership between NeoPollard Interactive and Aristocrat Interactive. Using Aristocrat’s Fusion aggregation platform, the games simulate sporting events every few minutes with outcomes generated by certified RNGs, offering a sportsbook-like experience without involving real-time wagering. The launch is part of a broader digital strategy to engage sports-minded players and support public education funding. Officials from the Virginia Lottery and supplier partners say the new offerings will diversify the digital portfolio and attract a wider player base, with more virtual titles planned in future expansions.
Pistons’ Malik Beasley Under Federal Investigation Over NBA Gambling Allegations
Detroit Pistons guard Malik Beasley is under federal investigation for alleged involvement in gambling activities tied to NBA games and prop bets from the 2023-24 season, when he played for the Milwaukee Bucks. According to sources, one U.S. sportsbook flagged suspicious betting activity centered on Beasley’s individual stats, including a January 2024 game that saw heavy action on an under prop related to his rebounds. Although Beasley exceeded the betting line, triggering losses on the unusual bets, the pattern sparked a federal inquiry led by the U.S. Attorney’s Office in the Eastern District of New York. Beasley has not been charged, and his attorney emphasized the presumption of innocence. The NBA and Pistons are cooperating with prosecutors. Beasley’s contract negotiations with Detroit have reportedly paused due to the investigation. This follows similar probes into other NBA players like Jontay Porter and Terry Rozier, as concerns about integrity in sports betting continue to escalate.
The Full Story Here.
Arizona Issues Cease-and-Desist Orders to Seven Illegal Gambling Operators
The Arizona Department of Gaming (ADG) has issued cease-and-desist letters to seven gambling platforms accused of operating illegally in the state. The operators — ReBet, Novig, Dallas Safari Club, Fanthem, Stake.US, BettorEdge, and High 5 — are said to have offered unauthorized gambling products such as slot-style games and unlicensed sports betting. Arizona permits only licensed sports betting and fantasy sports, and any operation outside this legal framework faces strict enforcement. ADG Director Jackie Johnson emphasized the department’s commitment to upholding state gaming laws, stating that violations such as promotion of gambling, illegal enterprise control, and money laundering will be pursued aggressively. The enforcement is part of Arizona’s broader crackdown on illicit platforms, with consumers warned not to assume an app or website is legal just because it’s accessible.
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