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Compliance Updates

Seminole-Backed Group Claims Fraud in Fla. Casino Initiative

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Seminole-Backed Group Claims Fraud in Fla. Casino Initiative

 

The Seminole Tribe of Florida has gone on the offensive in litigation over a Las Vegas Sands Corp.-backed ballot initiative aimed at opening the Sunshine State to additional casinos, accusing the sponsor of “brazenly violating” Florida election law in its efforts to gather needed voter signatures.
The battle in a Leon County circuit court started with Florida Voters in Charge, the political committee behind the proposal, claiming that parties acting on behalf of the Seminoles, who have held exclusive rights to offer certain casino gaming in the state, improperly interfered with its petitioning. But on Monday, the tribe-backed political committee Standing Up for Florida Inc. and its president, political consultant Pradeep “Rick” Asnani, filed a counter-claim accusing the plaintiffs of illegally paying petition gatherers on a per-signature basis,Ā  shredding certain petitions or forging information on incomplete petitions.
“The Constitution of Florida is under attack,” Standing Up for Florida cautioned, adding, “The counter-defendants’ illicit conduct is an attack on Florida’s election integrity.”
State law requires sponsors of citizen initiatives to gather valid signatures from at least 8% of the state electorate, or 891,000 registered voters, by Feb. 1 to qualify for the November 2022 general election ballot, but the Seminole-backed parties argue that the alleged violations render any signatures gathered by Florida Voters in Charge under such contracts to be null and void.
Standing Up for Florida, which said it has spent “exorbitant resources” to voice its opposition to the initiative and fight the allegedly fraudulent petition gathering, asserted that the per-signature payments are “flatly illegal” under a 2019 law that banned such payments.
It also cited affidavits from an employee and a former subcontractor of Grassfire LLC, a firm that coordinated some of the petition gathering, who testified that in addition to the allegedly illegal contracts, the company also illegally shredded and discarded some petitions that it thought would be rejected by state officials in order to reduce its submission fees, filled in omitted information, such as dates and addresses, and even forged state officials’ signatures.
The counter-claim names Florida Secretary of State Laurel M. Lee and Leon County Supervisor of Elections Mark S. Earley as third-party defendants in connection with its request for a declaratory judgment voiding the submitted signatures. Standing Up for Florida also named the officials in an accompanying emergency motion for a temporary injunction to stop them from counting the disputed petitions.
The ballot initiative, titled “Limited Authorization of Casino Gaming,” would authorize state officials to permit casino-style games, including blackjack, roulette and slot machines, at up to three new casinos, with the restriction that they be located at least 130 miles from existing tribal casinos.
Las Vegas Sands Corp. has poured nearly $50 million into Florida Voters in Charge, according to election finance records, and news reports have suggested that, based on the proposal’s geographic limitations, the global gaming giant is aiming to open a casino in Jacksonville, in the northeast corner of the state.
Florida Voters in Charge sued Standing Up for Florida, another Seminole-backed entity known as Let the Voters Decide LLC and several other parties on Dec. 1. In an amended complaint, it alleged that the defendants have engaged in increasingly aggressive efforts to harass and intimidate its signature collectors. The suit also accuses them of “paying off” these workers by either hiring them away to gather signatures for an unnecessary “sham” petition purportedly related to a new Seminoles gaming compact or simply paying them to stop working on the new casino initiative and, in some cases, leave the state during the process.
A Leon County circuit judge denied Standing Up for Florida’s motion to dismiss, in which it argued that it acted within the state’s open labor market to compete for these workers’ services. But she ordered the plaintiffs to submit contracts that the defendants pointed out were missing to support the interference claims.
In its filings Monday, Standing Up for Florida pointed out that Grassfire produced a redacted copy of its petition gatherer contract form, but publicly available copies of the form showed Grassfire had blocked out portions detailing “bonus” payments based on the number of signatures collected.
Standing Up for Florida acknowledged that elements of the arguments in its counter-claim were rejected when it previously raised them in a separate action it filed in Palm Beach County, where it is based. But the group said that it believes that court erred by finding that the 2019 law’s authorization for the state attorney general to seek injunctions for election fraud preempted private litigants, such as itself, from bringing election integrity actions. The law, it pointed out, said nothing about ending more than 100 years of private litigants bringing such cases in Florida.
With state elections officials allowed 60 days to verify submitted signatures, Dec. 30 marked an effective deadline to guarantee that signatures will be counted by the Feb. 1 deadline, so a ruling in favor of the Seminole parties’ claims would end the initiative’s chances for appearing on the November 2022 general election ballot.
According to the latest Department of Elections records, Florida Voters in Charge had obtained verification of about 426,000 signatures. On Tuesday, the Florida Supreme Court ā€”Ā  as part of the usual elections process ā€” tentatively scheduled oral arguments for March 8 on whether the proposed ballot question and title is clear and not misleading and satisfies a single-subject requirement.
Counsel for Standing Up for Florida and the other defendants declined on Tuesday to comment beyond their latest filings. Counsel for the Florida Voters in Charge and other plaintiffs did not respond to a request for comment.
Standing Up for Florida and the other defendants are represented by William N. Shepherd, Jeffrey M. Schacknow and Henry A. Moreno of Holland & Knight LLP.
Florida Voters in Charge and signature gathering companies The Human Connection and I & R Campaign Management Services are represented by James McKee, Benjamin J. Grossman and W. Bradley Russell of Foley & Lardner LLP.
Grassfire LLC is represented by Eduardo S. Lombard and Angela D. Miles of Radey Law Firm.

Arizona

ADG PSA: Consumer Protection Alert ā€“ Rise in ļ»æFraudulent Online Casinos Targeting Arizonans

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ADG PSA: Consumer Protection Alert ā€“ Rise in ļ»æFraudulent Online Casinos Targeting Arizonans

 

The Arizona Department of Gaming (ā€œADGā€) is issuing this Consumer Protection Alert to inform Arizonans of a concerning nationwide trend that has now reached Arizona. Fraudulent operators are falsely claiming that legitimate Arizona casinos have launched online gaming platforms. These illegal online casino platforms are presenting themselves as legitimate platforms by offering illegitimate or illegal gaming services. Online casinos (often referred to as ā€œigamingā€) are not legal in Arizona. Any claims otherwise should be treated as highly suspicious. These scams not only put players at financial risk but also undermine the integrity of Arizonaā€™s regulated gaming industry.

ADG has received multiple reports of fraudulent online casinos targeting Arizonans, as well as complaints from patrons who have been misled. These scams are being widely disseminated through social media advertisements directing consumers to download apps and visit websites, and are enticing unsuspecting consumers to spend money on illegitimate games.

The Arizona Department of Gaming urges residents to verify the legitimacy of any online gaming platform before engaging in play. Many of these operations are not legal or regulated, leaving users vulnerable to fraud, identity theft, and other serious risks. Due to their unregulated nature, ADG is unable to resolve complaints and disputes arising from unregulated and illegal gaming sites, leaving victims with little to no chance of recovering lost funds. It is important to remember that just because you can download the app, visit the website, and play the games, it does not mean it is a legitimate and legal gaming platform.

In light of these developments, the Department encourages both Arizona residents and visitors to visit our website to find a list of all regulated casinos and licensed event wagering and fantasy sports operators legally taking bets in Arizona. The list can be found on the Departmentā€™s website at gaming.az.gov. Legal, regulated operations provide important consumer protections not found in the illegal market, helping ensure a safer experience for participants.

The Dangers of Illegal Online Casinos:

Fraudulent online casinos often mimic reputable platforms, using familiar branding, flashy advertisements, and enticing promotions to lure victims. These unregulated operations leave participants vulnerable to:

  • Financial loss through fake gaming platforms or fraudulent prize fees.
  • Identity theft resulting from shared personal or financial information.

Common Red Flags of Illegal Platforms:

These deceptive platforms often use tactics such as:

  • Mimicking branding of legitimate Arizona casinos, including similar or actual logos and names.
  • Enticing promotions that appear too good to be true, such as excessive bonuses or guaranteed wins, luring players into providing sensitive information.
  • Incorrect Website URL/Mobile App ā€“ Fraudulent sites often use web addresses that closely mimic legitimate casino names but have slight misspellings or different domain extensions (e.g., .net instead of .com).

How to Protect Yourself:

  • Check before you bet: verify the licensed and regulated casinos and operators in Arizona.
  • Be skeptical of advertisements or promotions on social media promising guaranteed wins or no-risk gaming.
  • Avoid sharing personal or financial information with unverified sources.
  • Look for sites that include resources for dispute resolution, as well as self-exclusion, responsible gaming messaging, or a toll-free helpline number.

Reporting Suspicious Activity, Fraud, or Identity Theft:

If you encounter fraud, identity theft, or suspicious online gaming operations, apps, or websites impersonating a casino or claiming to be a licensed operator in Arizona, please take the following steps:

  1. Document the website URL, app, business name, and any promotional materials associated with the fraudulent operator.
  2. Report it to ADG at [email protected] and the Arizona Attorney Generalā€™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.

If you suspect identity theft, report it to the Federal Trade Commission (“FTC”): for help in English, go to IdentityTheft.gov and for help in Spanish, go to RobodeIdentidad.gov.

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Canada

AGCO issues $110,000 in penalties to BetMGM Canada for offering cash to induce new gambling customers

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AGCO issues $110,000 in penalties to BetMGM Canada for offering cash to induce new gambling customers

 

The Alcohol and Gaming Commission of Ontario (AGCO) has served BetMGM Canada Inc. with an Order of Monetary Penalty (OMP) of $110,000 for violations ofĀ the Registrarā€™s Standards for Internet Gaming.

In two separate incidents in 2024, BetMGM engaged marketing companies who offered cash to members of the public in return for opening new BetMGM accounts. The marketing activities occurred in public forums, such as a major national trade conference. Under AGCOā€™s Standards, operators are responsible for the conduct of their third-party suppliers who are contracted to support the operator’s Ontario gaming business, and must require their third-parties to meet Ontario laws, regulations and standards (Standard 1.19).

Ontario is one of the first jurisdictions in the world to establish and enforce rules that strictly limit high-risk inducement advertising and marketing in the online gambling industry. Registered iGaming operators are prohibited from offering gambling inducements, bonuses and credits as part of their broad public advertising and marketing activities (Standard 2.05). These Standards exist to protect Ontarians from predatory advertising and promotional marketing practices in order to limit the risk of gambling-related harm.

A registered operator served with an OMP by the AGCOĀ has the right to appeal the Registrarā€™s decision to theĀ Licence Appeal Tribunal (LAT), which is an adjudicative tribunal independent of theĀ AGCOĀ and part of Tribunals Ontario.

QUOTE

ā€œResponsible gambling safeguards and the protection of Ontarians on registered gaming sites is among our key priorities. The AGCO monitors the activities of all registered operators and their third-party suppliers to ensure they are meeting our high standards and we continue to take strong action to ensure they operate within the public interest.ā€

Dr. Karin Schnarr, Chief Executive Officer and Registrar ā€“Ā AGCO

ADDITIONALĀ INFORMATION

BetMGM Canada Inc. failed to comply with the Registrarā€™s Standards for Internet Gaming. Specifically, the licensee failed to comply with the following provisions of the Standards:

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  • 1.19 Operators are responsible for the actions of third parties with whom they contract for the provision of any aspect of the Operatorā€™s business related to gaming in Ontario and must require the third party to conduct themselves in so far as they carry out activities on behalf of the operator as if they were bound by the same laws, regulations, and standards.
  • 2.05 Advertising and marketing materials that communicate gambling inducements, bonuses and credits are prohibited, except on an operator’s gaming site and through direct advertising and marketing, after receiving active player consent.

Contrary to the Standards, BetMGM Canada Inc. and/or their affiliates allegedly engaged in the following activities:

a) On or about January 13 and 14, 2024, BetMGM representatives were alleged to have attended the National Franchise Show and were offering $100 in cash to new players for opening a new account and depositing $15.
b) On or about March 11, 2024, BetMGM acknowledged that its marketing affiliate ā€œAbove the Streetā€ had engaged in prohibited inducement marketing. The conduct resulted in 377 player sign-ups and $127,180.00 in commissions to “Above the Streetā€.
c) On or about April 13, 2024, another BetMGM marketing affiliate ā€œMaple Leaf Marketingā€ engaged in prohibited inducements and marketing to induce on-site activations and acquire new players. The conduct resulted in 94 player sign-ups and about $34,000.00 in commissions paid to ā€œMaple Leaf Marketingā€.
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Compliance Updates

4ThePlayer Games Secures Certification for the Brazilian Market!

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4ThePlayer Games Secures Certification for the Brazilian Market!

 

4ThePlayer has officially received game certification for the Brazilian iGaming market, reinforcing its commitment to regulated markets worldwide. This milestone enables the company to bring its acclaimed player-first gaming experiences to a brand-new audience.

Approved by Gaming Associates and eCogra, these certifications allow licensed operators in Brazil, to offer 4ThePlayerā€™s high-quality, player-centric games through their existing platform integrations with Relax Gaming and Yggdrasil.

Certified game titles include 4 Fantastic Fish, 4K Ultra Gold, and 5 Wild Buffalo as well as their innovative and unique table games 100 Bit Dice and 1000x Busta, all top-performing, player-favorite releases. Moving forward, all 4ThePlayer games will be certified for Brazil from day one.

Beyond its existing portfolio, 4ThePlayer is committed to delivering region-tailored content, leveraging its local team in Brazil to develop engaging, culturally relevant gaming experiences set to launch later this year. The first one of these titles is 4 Fantastic Fish Amazon Adventure, the latest in their player favourite 4 Fantastic series, coming via Yggdrasil in April.

Henry McLean, Co-Founder, Commercial & Marketing Director at 4ThePlayer, expressed his enthusiasm: “We are thrilled to bring our unique, player-centric games to Brazil, a market full of energy and potential. These game certifications are a major milestone, reinforcing our dedication to regulated markets and delivering best-in-class entertainment. We look forward to collaborating with operators and creating unforgettable gaming experiences for Brazilian players.”

With this certification, 4ThePlayer continues its mission of providing exceptional, player-focused gaming worldwide, ensuring its engaging and innovative titles reach new markets and audiences.

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