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Compliance Updates

PHAI Files Class Action Against DraftKings in Massachusetts

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The Public Health Advocacy Institute (PHAI) and its Center for Public Health Litigation filed a class action lawsuit on behalf of Massachusetts citizens who opened DraftKings Sportsbook accounts in response to a $1000 bonus sign-up promotion that the gambling company widely advertised. The Institute is based at Northeastern University School of Law in Boston.

The lawsuit alleges that members of the class were not aware that, in order to qualify for the sign-up bonus of $1000, new customers were required to make an initial deposit of $5000. After that, they had to gamble $25,000 on certain qualifying bets over a finite time period. If they did all of that, they would qualify to receive non-withdrawable credits to use on the platform.

Plaintiffs Shane Harris and Melissa Scanlon responded to the offer and were confused as to why they never received the $1000 sign-up bonus. The Institute’s executive director, Mark Gottlieb, said “Shane and Melissa are typical of many thousands of people in Massachusetts who were misled by the bonus offer and would not have signed up had they understood DraftKings’ unfair and deceptive requirements.”

Massachusetts is one of 38 states that has approved sports betting in the past five years since the U.S. Supreme Court cleared the way in the Murphy v. NCAA decision.

PHAI’s gambling policy advisor, Harry Levant, a therapist who treats patients with Gambling disorder, noted that “Gambling is a known addictive product similar to heroin, opioids, tobacco, alcohol, and cocaine.” Levant is also a doctoral student in Law and Public Policy at Northeastern who studies the public health impact of online gambling. “The time has come to bring public health reform and regulation to the gambling industry because lives are in the balance” Levant concluded.

Northeastern University Distinguished Professor of Law, Richard Daynard, who is also president of the Institute, is well-known for his pioneering work to hold tobacco companies liable for their products’ harms in court. “Online gambling is creating a public health disaster with increasingly addictive products right before our eyes,” said Daynard. “In fact,” he continued, “massive advertising using unfair and deceptive promotions to hook customers on an addictive product bears an uncanny similarity to what the cigarette companies used to get away with.”

Compliance Updates

MGCB Issues Cease-and-Desist Order to BetUS

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The Michigan Gaming Control Board (MGCB) has issued a cease-and-desist order to BetUS, an offshore gambling operator, for illegally offering internet gaming and sports betting to Michigan residents without proper licensure.

Investigations by the MGCB revealed that BetUS was accepting wagers from Michigan residents on various gambling activities, including sports and casino-style games, without the necessary state authorization. This operation violates Michigan’s Lawful Internet Gaming Act, the Gaming Control and Revenue Act, and the Michigan Penal Code.

“Unlicensed operators like BetUS undermine the integrity of Michigan’s regulated gaming market and expose consumers to potential risks. The MGCB is committed to protecting Michigan residents by ensuring that all gambling activities are conducted legally and responsibly,” said Henry Williams, Executive Director of MGCB.

The cease-and-desist order mandates that BetUS immediately halt all operations involving Michigan residents. The company has 14 days to comply or face further legal action in coordination with the Michigan Department of Attorney General.

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Compliance Updates

Peru Reports 40% Drop in Illegal Online Gambling

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Peru’s Ministry of Foreign Trade and Tourism (Mincetur) reported that, a little more than a year after having implemented the law that regulates the online sector, it has been able to reduce by 40% the offer of illegal games in digital platforms and applications.

In a public statement, the Executive portfolio in charge of regulating gambling also highlighted that, thanks to the inspection work, 15% of the illegal websites “have left the Peruvian market” and that “payment methods providers and financial entities have been contacted to block services to unauthorized operators”.

Based on this, Mincetur highlighted that “Peru has managed to position itself as a regional referent in the integral regulation of gambling” and that, through the normative framework, it was possible to “protect the consumer, guarantee transparency in the operations and promote the formal and sustainable economic development”.

The Ministry highlighted that with the implementation of Law No 31557, which regulates sports betting and online games, “the country became the third country in Latin America to establish clear regulations for this activity”.

“Since its entry into force in February 2024, 60 technological platforms have been authorized and 280 linked service providers have been registered, as well as the accreditation of nine international certification laboratories,” Mincetur said.

In this regard, the Ministry stated that “this regulation has made it possible to formalize the digital sector, promoting an environment of trust for both operators and users.” At the same time, it has allowed “new investment opportunities, boosting the digitalization of entertainment and strengthening the country’s tax collection”.

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Compliance Updates

Colombia’s Coljuegos Intensifies its Efforts to Block Illegal Gambling Websites

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Coljuegos, the regulatory authority overseeing gambling sites in Colombia, has intensified its efforts to block illegal gambling websites. Coljuegos will now directly send requests to Internet Service Providers to block websites that operate online games without paying the respective royalties.

Coljuegos President Marco Emilio Hincapié said this strategy will be implemented based on Circular 017 of 2025, issued by the Ministry of ICT, which defined the guidelines and procedures for blocking websites dedicated to the exploitation, sale, payment, or advertising of unauthorized games of chance.

“From the Government of Change, we are working together to protect the gambling industry. After several roundtable discussions with the Ministry of Information and Communications (MINTIC), we were able to simplify the process of blocking illegal gambling websites,” Hincapié said.

The president of the entity highlighted that, to date, nearly 26,600 blocking orders have been issued to unauthorized betting sites.

“With this new procedure, we hope to block illegal platforms more quickly. We will no longer have to submit requests to different entities; instead, we will be able to order blocks directly from internet providers,” Hincapié said.

This Ministry of Information and Communications (MINTIC) measure is issued in compliance with Decree 0175 of 2025, which adopted tax measures due to the state of internal unrest declared by the National Government.

“In addition to fighting illegal operators, our goal is to protect resources for peace and health, as well as provide greater safeguards for the 14 authorized operators in the country,” Hincapié added.

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