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Compliance Updates

NeoPollard Interactive and New Hampshire Lottery Prevail Against U.S. Government Appeal in iLottery Case

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NeoPollard Interactive Congratulates The New Hampshire Lottery On A Succesful FY 2022 In iLottery Sales

 

NeoPollard Interactive LLC, jointly owned by Pollard Banknote Limited and NeoGames S.A., is thrilled with the decision rendered by the First Circuit of the U.S. Court of Appeals on January 20, 2021 that unequivocally reconfirmed that the federal Wire Act is limited to sports betting and, therefore, does not pertain to state-run lotteries. This decision confirms the ruling of the U.S. District Court for the District of New Hampshire in 2019 that was appealed by the U.S. Federal Department of Justice. Overall, this decision is important for the U.S. lottery industry as a whole by alleviating concerns related to the legality of traditional retail or online lottery sales (also known as “iLottery”) which rely on the transmission of lottery data over the Internet.

The Wire Act subjects to criminal liability any person who “knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers.” In 2011, the Department of Justice’s Office of Legal Counsel (“OLC”) concluded that the Wire Act only applied to sports betting. Following that opinion, many lotteries began to offer non-sports gaming products over the Internet, reasonably relying on the OLC’s conclusions that their activities were lawful.

In January 2019, the OLC reversed that prior decision and released a new opinion concluding that the Wire Act extended beyond the sports-betting context to criminalize interstate transmissions of all bets or wagers—thereby overturning the conclusions of the 2011 opinion and threatening to shut down the burgeoning iLottery industry.

Working alongside the New Hampshire Lottery Commission (“New Hampshire Lottery”), NeoPollard Interactive and Pollard Banknote, the New Hampshire Lottery’s iLottery providers, immediately sought a declaratory judgment in federal court that the OLC’s new Wire Act interpretation was based on an incorrect reading of the statute. In June 2019, the U.S. District Court for the District of New Hampshire confirmed that the federal Wire Act applies only to sports-betting activities. The OLC appealed that decision.

In this latest judgement, the First Circuit affirmed the District Court’s June 2019 decision thus restoring the 2011 interpretation that limited the Wire Act to sports betting. By upholding the 2011 interpretation that the Wire Act applies only to bets or wagers on a sporting event or contest, this ruling safeguards the New Hampshire Lottery, NeoPollard Interactive and Pollard Banknote, specifically, and all other iLottery operators, generally, from the threat of unlawful prosecution.

In addition, and equally importantly for other state lotteries, any concerns about the pooling of bets or the transmission of wagers in connection with national and regional multi-state games such as Powerball® and Mega Millions, whether through traditional retail or online channels, have been completely eliminated.

“We are very happy with the recent judgement confirming, yet again, the 2011 interpretation of the Wire Act,” said Liz Siver, General Manager, NeoPollard Interactive. “This is a great success for the Lottery industry generally, and iLottery specifically, as it ensures that the sale of both iLottery games and national and regional multi-state games can continue to be strong contributors to lottery sales and the good causes that U.S. lotteries support. In terms of iLottery, we know first-hand the positive effect that these operations have had, not only on state resources, but on player experience as well. The current worldwide pandemic has amplified the importance of this new channel. We look forward to continuing to provide state-of-the-art iLottery products and strategies to lotteries with an increasing array of products within the digital landscape.”

SOURCE NeoPollard Interactive

Compliance Updates

Aviatrix receives certifications in Brazil

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The award-winning crash game Aviatrix has received certification for Brazil’s online gaming market, ensuring full compliance in the market.

Aviatrix has been granted full Federal Certification to offer its games via licensed operators in the country. Meanwhile, Aviatrix has also acquired a dedicated certification for the state of Paraná.

This means Brazilian players can now enjoy the most innovative crash game on the market –  one that has already gained a loyal following across Latin America.

Anastasia Rimskaya, Chief Account Officer at Aviatrix, said: “This is a huge milestone for Aviatrix. Brazil is one of the most exciting, newly-regulated markets in the world. There is massive demand for high-quality content, and that’s why we know Aviatrix is going to thrive. We’re looking forward to bringing the game to the country via some world-class partners. Get ready for takeoff.â€

Aviatrix has been rapidly expanding in Latin America over recent months, including in Peru and Colombia.

The company was also named ‘Rising Star in Casino’ at last year’s SBC Awards Latinoamérica.

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Compliance Updates

Altenar gains ground in Brazil with virtual sports certification

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Altenar gains ground in Brazil with virtual sports certification

 

Leading sportsbook technology provider ready to deliver premium virtual sports offering to local operators

Altenar has achieved a significant milestone in its LatAm expansion by securing a new certification to offer sportsbook and RGS, including virtual sports in Brazil.

This development underscores Altenar’s commitment to providing cutting-edge and engaging sportsbook solutions in regulated markets, and follows a string of landmark deals with industry leaders, such as Inspired, Kiron, Leap and Sportradar.

To achieve the certification, Altenar underwent a thorough evaluation process, demonstrating the provider’s dedication to compliance and its ability to meet the stringent requirements of the Brazilian market.

The integration of virtual sports from renowned providers will further enhance Altenar’s comprehensive platform, offering a dynamic and exciting vertical for Brazilian players that can be enjoyed 24/7.

Dinos Doxiadis, Director of Product – Sportsbook and Data at Altenar, said: “We are thrilled to achieve certification for virtual sports in Brazil. This marks another significant step in our growth across Latin America and reinforces our commitment to the burgeoning region.

“By joining forces with some of the industry’s most renowned providers, we are confident in our ability to deliver an unparalleled virtual sports experience to operators and players in Brazil. This offering will complement our existing sportsbook solutions and provide further opportunities for engagement and growth in this key market.â€

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Arizona

Arizona Department of Gaming Issues Multiple Cease-and-Desists

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Arizona Department of Gaming Issues Multiple Cease-and-Desists

 

The Arizona Department of Gaming (“ADG”) has taken decisive enforcement action this week against multiple unlicensed and unregulated gambling operators—both domestic and international—that have been unlawfully targeting Arizona residents. As part of its ongoing efforts to protect the public and uphold Arizona gaming laws, the Department has issued several cease-and-desist orders to unlicensed entities offering unlawful wagering activities.

The named operators are allegedly providing access to various illegal online gaming services, including slot-style casino games, “sweepstakes†platforms, sports wagering, horse race betting, and peer-to-peer wagering exchanges. These operations are not licensed by the State and fail to meet Arizona’s strict regulatory requirements, thereby posing significant consumer protection and financial risks to Arizonans.

The following unlicensed operators have been issued cease-and-desist orders:

  • Sweepstakes:
  • ARB Gaming, LLC d/b/a Modo.us
  • MODO.us (online casino) / BITMODO LLC
  • Modo
  • Epic Hunts
  • Event Wagering Sportsbook:
  • Generiz
  • Peer-to-Peer Exchange:
  • ProphetX
  • Offers Multiple Types:
  • MyBookie
  • BetUS.com

The active operations of these companies and online websites in Arizona are alleged to be felony criminal enterprises, and each operator has been directed to desist from any future illegal gambling operations or activities of any type in Arizona. Due to the unregulated and illegal online gaming offerings on these sites, operators are claimed to be in violation of Arizona gaming laws, including:

  1. Promotion of Gambling (Felony) — A.R.S. § 13-3303.
  2. Illegal Control of an Enterprise (Felony) — A.R.S. § 13-2312.
  3. Money Laundering (Felony) — A.R.S. § 13-2317.

Each aforementioned operator has been directed to immediately cease all online (or other) gambling operations and activities in Arizona, and take the necessary steps to immediately prevent and exclude Arizona residents and visitors from gambling on their websites.

“Illegal gaming—no matter the platform or format—has no place in Arizona. Whether it’s sweepstakes, online casino-style games, or unauthorized sports betting, if an operation exists outside of the state’s legal and regulatory framework, we are prepared to take enforcement action,” stated Jackie Johnson, Director of the ADG. “Illegal gambling is not just unlawful—it’s stealing from our economy and undermining the safeguards that protect consumers. The Department fully supports the licensed and regulated operators who are doing things the right way—operating within the bounds of the law, contributing to Arizona’s economy, and providing the protections that only a regulated market can ensure.â€

Consumer Protection Advisory:

As illegal online gaming activity continues to rise, the ADG urges all residents and visitors to be cautious when participating in gaming—whether online or in person. Regulated gaming offers important consumer protections—helping ensure fair play, data security, accountability, and a safer overall experience.

Many online platforms currently accessible in Arizona are neither licensed nor regulated, exposing users to significant risks, including fraud, identity theft, and financial loss. Because these operations fall outside the state’s regulatory authority, ADG cannot assist with complaints or disputes involving unregulated or illegal gaming activities—often leaving victims with no recourse for recovering lost funds. It is important to remember: just because you can download the app, access the website, and play the games does not mean the platform is legal or safe.

Individuals are encouraged to verify the legitimacy of any gaming platform before placing bets or engaging in gameplay. To protect yourself, always use legally authorized and state-regulated operators. A complete list of authorized casinos, event wagering operators, fantasy sports operators, and off-track betting for horse racing is available on ADG’s official website: gaming.az.gov.

How to Report Suspicious Gaming Activity, Fraud, or Identity Theft:

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If you encounter what appears to be an illegal gaming website, app, or an operation impersonating an authorized Arizona casino or licensed operator, take the following steps:

  1. Document the website URL, app, business name, and any promotional materials associated with the platform or operator.
  2. Report itto ADG at [email protected] and the Arizona Attorney General’s Office Consumer Information and Complaints Unit at (602) 542-5763 or by visiting azag.gov/consumer.
  3. Cease activity on the platform and monitor financial accounts for unauthorized transactions.
  4. If you suspect identity theft, report it to the Federal Trade Commission (“FTCâ€): for help in English, go to IdentityTheft.gov, and for help in Spanish, go to RobodeIdentidad.gov.

ADG takes complaints about all illegal gambling seriously. To report any form of suspected illegal gambling, visit gaming.az.gov/about/contact-us, call ADG at (602) 255-3886, or email [email protected]. Reports can be made anonymously.

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