SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Topics 7/9/25:
- Manitoba Court Slams Bodog With Injunction for Causing ‘Incalculable Harm’ to Local Lottery
- Underdog Sports Sues California AG to Block Fantasy Sports Ban
- Meta Tightens Ad Rules for Gambling Operators and Affiliates
- Michigan Gaming Regulator Shuts Down 19 Illegal Online Gambling Sites
- Guardians Pitcher Luis Ortiz Under MLB Investigation for Gambling Irregularities
- Nevada Rep. Titus Pushes Bipartisan Bill to Fully Restore Gambling Tax Deductions
- California Law Firms File Class Action Against DFS Operators
Manitoba Court Slams Bodog With Injunction for Causing ‘Incalculable Harm’ to Local Lottery
A Manitoba judge has formally issued a detailed injunction against offshore sportsbook Bodog, accusing the operator of causing “ever-increasing and incalculable harm” to the Manitoba Liquor and Lotteries Corp. (MBLL) by offering unregulated gambling services. The court emphasized Bodog’s misleading marketing and lack of oversight, which has undermined MBLL’s authority and confused Manitobans about legal gambling options. Bodog failed to appear in court and has since begun restricting access to its real-money site for Manitoba residents. The ruling is celebrated as a victory by the Canadian Lottery Coalition, which argues that grey-market gambling operations like Bodog siphon revenue from provincial lotteries and lack necessary consumer protections. The decision also intensifies the broader push by Canadian provinces—especially outside Ontario and Alberta—to crack down on offshore and unregulated gambling.
Underdog Sports Sues California AG to Block Fantasy Sports Ban
In a major legal battle with statewide and national implications, Underdog Sports has sued California Attorney General Rob Bonta to prevent his office from issuing a legal opinion that could deem daily fantasy sports (DFS) illegal. The lawsuit, filed just days ahead of the anticipated ruling, claims the AG lacks statutory authority to issue such an opinion and warns that it could devastate California’s DFS market, which accounts for 10% of Underdog’s revenue. The case also challenges the growing regulatory push against pick’em-style games that resemble sports betting. Industry groups and DFS operators have rallied in opposition, warning that a crackdown would hurt millions of users and set a dangerous precedent across the country. The legal move aims to buy time and preserve DFS operations in the absence of specific California legislation on the matter.
Meta Tightens Ad Rules for Gambling Operators and Affiliates
Meta has implemented a new global policy requiring gambling operators and affiliates to undergo a more rigorous ad approval process before promoting gambling-related content on Facebook and Instagram. Effective immediately, advertisers must submit detailed documentation—such as valid gaming licenses, legal names, and platform screenshots—via Meta’s Business Suite. The policy covers all gambling categories including sports betting, online casinos, poker, and prize-based games, while also enforcing age restrictions and requiring influencers to be registered affiliates if they publish content directly. Meta aims to enhance transparency and regulatory compliance across its platforms, emphasizing the need for verified partnerships and lawful advertising practices in every jurisdiction where the ads appear.
Michigan Gaming Regulator Shuts Down 19 Illegal Online Gambling Sites
In its largest enforcement action to date, the Michigan Gaming Control Board (MGCB) has ordered 19 illegal online gambling sites to cease operations immediately for violating Michigan’s Lawful Internet Gaming Act. The list includes well-known platforms such as Ignition Casino, Red Stag Casino, and Café Casino. These operators were allegedly offering unlicensed casino games and sports betting to Michigan residents without state approval. MGCB Executive Director Henry Williams emphasized the consumer risks associated with unlicensed platforms, including unpaid winnings and lack of regulatory protections. The regulator has also launched investigations into several other platforms and warned operators that failure to comply within 14 days could result in legal action, backed by the state Attorney General’s office.
Guardians Pitcher Luis Ortiz Under MLB Investigation for Gambling Irregularities
Cleveland Guardians pitcher Luis Ortiz is under investigation by Major League Baseball after betting-integrity firm IC360 flagged unusual gambling activity tied to his first-pitch performance in two games. Alerts were sent to sportsbooks regarding microbets placed on Ortiz throwing a ball or hitting a batter on the first pitch of specific innings. As a result, Ortiz was placed on non-disciplinary paid leave through July 17. The league and MLBPA negotiated his temporary removal while the investigation continues. Ortiz had been scheduled to start against the Cubs, but will now remain away from all team facilities. The case follows a series of recent MLB disciplinary actions related to gambling, including player bans and an umpire firing. The Guardians organization has expressed full cooperation with the league’s investigation.
Nevada Rep. Titus Pushes Bipartisan Bill to Fully Restore Gambling Tax Deductions
Nevada Congresswoman Dina Titus has introduced the bipartisan FAIR BET Act, aiming to reinstate full tax deductions for gambling losses after a controversial amendment reduced them to 90% in the recently passed reconciliation bill. Titus, who chairs the Congressional Gaming Caucus, emphasized the bill’s importance in ensuring fairness for both casual and professional gamblers, stating that the current change disproportionately impacts those who rely on gaming for income. The amendment, part of what was dubbed the “One Big Beautiful Bill,” requires taxpayers to report gambling winnings without being able to fully offset them with losses, effectively taxing income that hasn’t been earned. The proposal has drawn sharp criticism from gambling professionals and garnered support from lawmakers across party lines, including Rep. Ro Khanna and Rep. Troy Nehls. The American Gaming Association has voiced concerns and pledged support for correcting the change to protect the economic balance of the gaming industry.
California Law Firms File Class Action Against DFS Operators
A coalition of California consumer protection law firms has filed class action lawsuits against major daily fantasy sports (DFS) operators—FanDuel, DraftKings, PrizePicks, and Underdog—accusing them of offering illegal sports betting in the state disguised as DFS. Filed by Almeida Law Group, the lawsuits seek both monetary compensation and injunctive relief for California residents, claiming the companies violated state penal codes. The firm is also investigating additional operators, including Thrillzz, Sleeper, and Yahoo Daily Fantasy. Margot Cutter of Cutter Law emphasized the need for transparency, arguing that misleading consumers about the nature of gambling harms public trust and legal integrity. The lawsuits were filed just as California Attorney General Rob Bonta issued an official opinion declaring DFS contests illegal in the state, an opinion Underdog unsuccessfully tried to block in court.
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