SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Topics 6/18/25:
- PrizePicks Sues Ex-Exec for Allegedly Stealing Trade Secrets Before DraftKings Move
- New York AG Cracks Down on 26 Sweepstakes Casinos in Major Enforcement Sweep
- FanDuel Eyes Nationwide Expansion via Kalshi Prediction Market Deal
- Illegal Gambling Sites Rake in 74% of US Online Revenue, Report Reveals
- Bet365 Joins Sports Betting Alliance to Boost Legal Market Push
- Australia Blocks Seven More Illegal Gambling Sites in Latest Crackdown
PrizePicks Sues Ex-Exec for Allegedly Stealing Trade Secrets Before DraftKings Move
PrizePicks has filed a federal lawsuit in Washington against Judah Huffman, its former social media director, accusing him of misappropriating highly confidential marketing strategies and growth plans by uploading them to his personal ChatGPT account shortly before resigning. Huffman allegedly violated a non-compete agreement and destroyed evidence while securing a role at rival DraftKings. The company seeks an immediate injunction to block Huffman from working for DraftKings, removal of sensitive data, and damages for breach of contract, fiduciary duty, and federal trade secret violations. The case underscores growing corporate concerns over employee use of AI tools for sensitive data.
New York AG Cracks Down on 26 Sweepstakes Casinos in Major Enforcement Sweep
New York Attorney General Letitia James, in collaboration with the State Gaming Commission, issued cease-and-desist letters to 26 unlicensed sweepstakes casinos accused of operating illegal gambling businesses. The sites, including well-known brands like Chumba Casino, Global Poker, and Luckyland, offered slot-style and table games using virtual coins that could be redeemed for real-world prizes, violating state gambling laws. The crackdown highlights growing regulatory concern about unlicensed operators exposing consumers to fraud, identity theft, and unfair gaming practices without proper oversight or player protections.
FanDuel Eyes Nationwide Expansion via Kalshi Prediction Market Deal
According to reports, FanDuel is negotiating a partnership with Kalshi to enter the federally regulated prediction market space, which could enable FanDuel to offer event contracts across all 50 states, including states without legal sports betting like California and Texas. Such a deal could allow FanDuel to bypass state-specific sports betting restrictions and taxes while expanding into markets involving politics, pop culture, and sports. The talks come as Kalshi faces legal challenges from state regulators, with pending lawsuits and favorable rulings in Nevada and New Jersey. The move signals potential disruption to the US sports betting landscape as sportsbooks eye alternative betting exchanges.
Illegal Gambling Sites Rake in 74% of US Online Revenue, Report Reveals
A study commissioned by the Campaign for Fairer Gambling and compiled by Yield Sec found that illegal offshore operators accounted for $67 billion of the $90 billion US online gambling GGR in 2024. The report detailed how unlicensed platforms, aided by a vast network of affiliates, outperformed regulated operators by offering fewer restrictions, larger bonuses, and widespread visibility. It noted stark differences between states, with regulated operators capturing over half the market in jurisdictions like New Jersey and Michigan, while illegal operators dominated states without comprehensive online gambling laws. The findings spotlight the urgency of stronger enforcement and the challenge legal operators face in competing against the black market.
Bet365 Joins Sports Betting Alliance to Boost Legal Market Push
The Sports Betting Alliance (SBA), originally formed by FanDuel, DraftKings, BetMGM, and Fanatics, has welcomed Bet365 as its newest member to bolster advocacy for regulated sports betting across the US. Bet365’s inclusion reflects its deepening commitment to responsible gambling and legal operations as it expands to 13 states, with Missouri expected next. The SBA’s collective mission focuses on promoting consumer protection, eliminating illegal operators, and ensuring fair market competition. The move aligns with Bet365’s strategy to build brand presence and secure market access through partnerships like its recent deal with the St. Louis Cardinals.
Australia Blocks Seven More Illegal Gambling Sites in Latest Crackdown
The Australian Communications and Media Authority (ACMA) announced it ordered ISPs to block access to seven gambling sites, including Casiny, CoinPoker, and Vigor Spin, found to be operating in breach of the Interactive Gambling Act. The sites offered prohibited gambling services to Australian consumers without local licenses, exposing players to financial risks and lacking basic consumer protections. Since its crackdown began, ACMA has blocked over 1,250 sites, and its actions reflect a continued push to safeguard players and uphold the integrity of Australia’s regulated gambling market.
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