SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Topics 4/2/25:
- Massachusetts Lawmakers Push for Stricter Sports Betting Limits
- Stake.us Hit with Lawsuit in California Over Alleged Illegal Gambling
- NJ Regulators Send Cease-and-Desist Orders to Kalshi, Robinhood for Unauthorized Bets
- Alberta Unveils New Sports Betting and iGaming Legislation
- Underdog Hits $1 Billion Valuation Following Series C Funding Round
- Sports Illustrated Launches Into Prediction Markets with SI Predict
- Influencers Promoting Illegal Casino Ads to Face Government Crackdown
- Kalshi Sues Nevada Gaming Regulators Over Market Restrictions
- Ohio Orders Prediction Market Platforms to Cease Unauthorized Operations
Massachusetts Lawmakers Push for Stricter Sports Betting Limits
Massachusetts Senator John Keenan has introduced the Bettor Health Act, aimed at imposing stricter regulations on online sports betting. The bill proposes banning prop bets across all sports, eliminating advertisements during televised events, and capping daily wagering limits. It also seeks to raise the operator tax rate from 20% to 51%, aligning Massachusetts with New York and New Hampshire. Advocates compare the gambling crisis to the opioid epidemic, warning of a public health threat if not addressed. The bill has received support from other Democratic lawmakers and gambling addiction recovery voices.
Stake.us Hit with Lawsuit in California Over Alleged Illegal Gambling
A lawsuit filed by Dennis Boyle in California federal court accuses Stake.us, the U.S. arm of global crypto gambling giant Stake.com, of violating California gambling laws through its sweepstakes casino model. Boyle, who identifies as a gambling addict, argues that Stake.us engages in illegal gambling by offering casino-style games using its “Gold Coins” and “Stake Cash” system, which can be redeemed for prizes and crypto. The suit claims Stake’s algorithms are not random and exploit addictive behaviors, and it accuses the platform of operating without proper licensure under California’s Unfair Competition Law. The plaintiff seeks to invalidate Stake’s user contracts and halt its operations in the state. Stake has moved the case to federal court while the plaintiff pushes for it to return to state jurisdiction.
NJ Regulators Send Cease-and-Desist Orders to Kalshi, Robinhood for Unauthorized Bets
The New Jersey Division of Gaming Enforcement (DGE) sent cease-and-desist letters to Kalshi and Robinhood for allegedly violating state gambling laws by offering prediction markets on NCAA games, including in-state college events. The DGE cited violations of the NJ constitution, which bans betting on New Jersey-based college teams and events held in-state. The letter demanded Kalshi stop operations targeting NJ residents and void any placed wagers by a set deadline. This follows similar actions by Nevada and Massachusetts against Kalshi and Robinhood amid growing concern over unlicensed prediction market activity overlapping with sports betting.
Alberta Unveils New Sports Betting and iGaming Legislation
Alberta’s new Bill 48, the iGaming Alberta Act, proposes a competitive market for online casino and sports betting, replacing the current government-run Play Alberta monopoly. The bill creates two key entities: the Alberta Gaming, Liquor and Cannabis Commission (AGLC) as the regulator, and the Alberta iGaming Corporation, a new Crown entity that contracts with private operators. This structure mirrors Ontario’s, allowing Alberta to satisfy legal requirements while enabling private-sector participation. The legislation includes fines up to $500,000, mandates responsible gambling measures such as centralized self-exclusion, and allows for surplus gaming revenue to be transferred to the province. The final tax rate, DFS impact, and advertising rules remain pending, but the market could generate over $700 million annually.
Underdog Hits $1 Billion Valuation Following Series C Funding Round
Underdog has achieved a $1.2 billion valuation following a $70 million Series C funding round led by Spark Capital, marking the largest investment in a sports gaming firm by a top-tier Silicon Valley VC. The funding round nearly triples the company’s 2022 valuation and could exceed $100 million. Underdog plans to invest heavily in product and talent as it continues expanding its legal sports betting operations, which began in North Carolina. The announcement comes shortly after a $17.5 million settlement with New York regulators, where the company pulled its fantasy products. Spark Capital and other investors praised Underdog’s focus on innovative, customer-centric gaming products and low acquisition costs.
Sports Illustrated Launches Into Prediction Markets with SI Predict
Sports Illustrated is entering the prediction market space with the launch of SI Predict, a non-custodial platform created in partnership with Galactic. Unlike its previous SI Sportsbook effort, which failed to gain traction and has since been shut down, SI Predict will not require state-level gambling licenses. Instead, it intends to operate under Commodity Futures Trading Commission (CFTC) regulations, though it is unclear if it will pursue a formal exchange license. SI Predict will allow users to place money on yes/no outcomes of sports events, similar to traditional props, but not against the house. The platform is set to launch in Q2 2025 and aims to offer broader and more socially relevant markets than traditional sportsbooks. The move reflects a trend of media brands pivoting to lower-barrier-to-entry models in the growing prediction market space.
Influencers Promoting Illegal Casino Ads to Face Government Crackdown
The Department of Internal Affairs (DIA) in New Zealand has begun cracking down on social media influencers who promote offshore online casinos, issuing its first takedown notices and warning of fines up to $10,000 per breach. The DIA says these influencers, some of whom are Māori and specifically targeting Māori audiences, are violating the Gambling Act by promoting illegal offshore gambling operators. Despite the DIA’s warnings, the Problem Gambling Foundation argues the agency is not going far enough and should impose immediate fines. The government is preparing to regulate the online casino market with 15 licenses set to be auctioned ahead of a February 2026 market launch. The Foundation, however, warns this could flood the public with gambling ads and urges a total advertising ban.
The Full Story Here.
Kalshi Sues Nevada Gaming Regulators Over Market Restrictions
KalshiEX LLC has filed a federal lawsuit against Nevada gaming regulators and Attorney General Aaron Ford, seeking a permanent injunction to prevent the state from enforcing cease-and-desist actions against its federally regulated event-based trading platform. Nevada Gaming Control Board argues Kalshi’s sports and election-related contracts resemble unlicensed gambling. Kalshi counters that it operates lawfully under Commodity Futures Trading Commission (CFTC) oversight and that Nevada is interfering with federal jurisdiction. The lawsuit names several high-ranking Nevada officials and asks the court to uphold Kalshi’s federal right to offer event-based derivatives trading, including sports and political outcome contracts.
Ohio Orders Prediction Market Platforms to Cease Unauthorized Operations
The Ohio Casino Control Commission (OCCC) issued cease-and-desist letters to Kalshi, Robinhood, and Crypto.com for offering sports-related event contracts without licenses. The OCCC deemed the platforms’ activities to fall under the legal definition of sports gaming, requiring licensure under Ohio law. Executive Director Matthew Schuler emphasized the lack of consumer protections and underage access risks. Ohio’s move follows similar actions by Nevada, New Jersey, and Massachusetts. Kalshi CEO Tarek Mansour criticized the states’ actions as misunderstandings of federally regulated prediction markets, and hinted at potential legal action in response, as Kalshi already sued Nevada and New Jersey regulators.
The Full Story Here.
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