Tag:Gambling
Betting on Compliance: Regulatory Challenges for Online Sports Betting Apps
The explosive growth of online sports betting in the United States over the past decade has created a complex regulatory frontier for digital wagering platforms. After the U.S. Supreme Court struck down the federal ban on sports gambling in Murphy v. NCAA, states have individually determined how and whether to legalize mobile sports wagering. This state-by-state patchwork, combined with the rise of innovative betting products, has generated compliance challenges in age verification, geolocation enforcement, consumer protection, anti-money laundering obligations, and advertising—issues that extend far beyond traditional in-person gambling regulation.
Super Bowl Betting and the Rise of Prediction Markets
The Super Bowl remains the most watched sporting event in the United States, drawing billions in legal and illegal wagers each February. In recent years, a new form of wagering known as prediction markets has emerged, allowing users to trade on event outcomes in ways that resemble both sports betting and financial derivatives. These trading platforms raise compliance challenges because they intersect with both federal derivatives regulation and state gambling laws. At the same time, the NFL has taken their own stance, which is to restrict prediction markets from advertising around the Super Bowl. As a result, prediction markets tied to the Super Bowl exist in a regulatory gray area that demands clearer oversight to protect consumers and legal betting markets.
Stadiums, Casinos, and Riverboats: Illinois and Chicago Hedging Their Bets on the Future of Gambling Regulations
Illinois has historically been at the forefront of gambling regulations in the United States. Chicago, on the other hand, has resisted sanctioning formalized gambling locations until recently. Following the passage of the 2019 Gaming Expansion Law, Illinois expanded gambling across the state and Chicago is planning to open its first casino by 2025. Chicago is also concurrently debating an ordinance that would allow sports gambling within the city’s stadiums and arenas.
Feeling Lucky (or Manipulated)?
Sports betting is now just as easy as opening up an app and playing a game on your phone. But should it?
Of course not. Sports gambling, with the potential to waste away thousands of dollars, should feel more like gambling at a casino than making a few clicks on a phone.
The Professional and Amateur Sports Protection Act of 1992 (PASPA) effectively outlawed sports betting nationwide. However, in Murphy v. National Collegiate Athletic Association, the Supreme Court struct down PASPA, launching the phrenzy towards nationwide legalization. Sports betting is fully legal and operational in 18 states in addition to Washington D.C. with the possibility of 13 more states joining the national trend by the end of 2021.
In June 2019, Governor Pritzker signed the Sports Wagering Act into law, ushering in legal sports gambling in Illinois. The law initially required users to submit applications for sports wagering services in person. However, due to the pandemic Governor Pritzker issued several Executive Orders suspending this requirement through at least November 14. With the pandemic still in full swing, there is little reason why this suspension will not be extended again.
Is Self-Regulation in the Modern Era of Gaming Enough? How the ESRB Hopes to Raise Awareness on Loot Boxes, Randomized Items, and other Microtransactions
Earlier this year, the Entertainment Software Rating Board (“ESRB”) assigned a new disclosure for their video game ratings system: “In-Game Purchases (includes Random Items).” The decision stems from public outcry and FTC concerns about gamers, mostly children, being able to easily spend real money for randomized in-game content. But is it enough?