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Compliance Updates

Apple Hit with Class-action Lawsuit over Gambling Apps

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Apple Hit with Class-action Lawsuit over Gambling Apps

 

A class-action lawsuit filed on Tuesday targets Apple for hosting and profiting from casino-style apps through the App Store, specifically titles developed by Zynga.

Lodged with the U.S. District Court for the Northern District of Columbia, the suit takes issue with free-to-play games that offer micro-transactions, or in-app purchases, for digital currency or other forms of digital goods.

Plaintiffs name ā€œZynga Casino Appsā€ as violating a number of state statutes related to gambling, saying Apple is culpable in the scheme by providing iOS development tools, hosting the titles on the App Store, and profiting from their sale. As the sole administrator of the App Store, Apple allegedly ā€œpermits and facilitates illegal gambling by operating as an unlicensed casino,ā€ allowing users to buy ā€œcoinsā€ or ā€œchipsā€ for use in Las Vegas-style games like blackjack, roulette, poker, keno, bingo, and other card and gambling games.

Most games mentioned in the suit present a limited number of chips to start, but users must purchase additional virtual funds once that pot is exhausted. The consumer will ultimately run out of coins or chips and ā€œwill be prompted to use real money to purchase additional coins or chips for the chance to continue playing the game,ā€ the suit alleges.

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Importantly, according to plaintiffs, users are unable to collect actual cash in the casino games, but they do have the ability to win and, therefore, acquire more playing time. This system ā€” paying money for a chance to win more playing time ā€” allegedly violates anti-gambling laws in the 25 states at issue in the case.

Alabama, Arkansas, Connecticut, Georgia, Illinois, Indiana, Kentucky, Massachusetts, Minnesota, Mississippi, Missouri, Montana, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, South Carolina, South Dakota, Tennessee, Vermont, Virginia, Washington, and West Virginia are named in the suit.

Causes of action include violation of the Civil Remedy Statutes for Recovery of Gambling Losses and unjust enrichment. Plaintiffs seek an injunction, damages, restitution, and legal fees.

Compliance Updates

IGSA Welcomes Sharp Vision as Silver Member

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The International Gaming Standards Association (IGSA) has welcomed Sharp Vision as a new Silver member. Sharp Vision is a leading provider of regulatory turnkey solutions for gaming authorities.

ā€œWe are delighted to be a part of IGSA and we look forward to contributing to the advancement of best practices among regulators in the fast-growing gaming industry,ā€ Damien Raymond, COO of Sharp Vision, said.

ā€œIGSA is very excited to welcome Sharp Vision to our membership. We believe that IGSA Standards can enhance Sharp Visionā€™s products supporting regulatory authority oversight. We look forward to their participation in IGSA committees,ā€ Mark Pace, President of IGSA, said.

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Compliance Updates

PGCB Places Seven Individuals on Involuntary Interactive Exclusion List for Online Gaming Fraud

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The Pennsylvania Gaming Control Board (PGCB) on Wednesday approved recommendations by its Office of Enforcement Counsel (OEC) for the placement of seven individuals on the iGaming Involuntary Exclusion List.

The online transactions that these seven individuals engaged in, totaling $27,168, were investigated by the Boardā€™s Bureau of Investigations and Enforcement (BIE) and found to be fraudulent in two major respects:

  • an individual used a fraudulent scheme to obtain an online account or accounts in another personā€™s name and identifiers, placed funds into these accounts utilizing other personsā€™ payment methods, and without engaging in any gaming activity, managed to have funds withdrawn from the fraudulently-established account or accounts directly into their own bank account; or,
  • requested and received a refund for a disputed credit or debit card transaction from a card issuer even though that refund was fraudulent.

The specific fraudulent conduct of each individual is further described below:

  • Created two separate online sports wagering accounts using the personal identification and credit cards of other individuals, and withdrew $300;
  • Created 13 separate online casino-type games accounts using the personal identification and credit cards of other individuals, and withdrew $545;
  • Created six separate online sports wagering accounts using the personal identification and credit cards of other individuals, and withdrew $1000;
  • Created four separate online sports wagering accounts using the personal identification and credit cards of other individuals, and withdrew $1123;
  • Created two separate online sports wagering accounts using the personal identification and credit cards of other individuals, and withdrew $1500;
  • Illegally requested and received six chargebacks to a credit card associated with an online casino-type games account totaling $10,100;
  • Created one online sports wagering account using the personal identification and credit card of another individual, and withdrew $12,600.

The Boardā€™s actions in these matters stem from its commitment to keep individuals who have committed fraud from gaming online in Pennsylvania. The additions made bring to 37 the total number of individuals who are currently on the iGaming Involuntary Exclusion List.

The Board also placed four other individuals on its Casino Involuntary Exclusion List. The number of individuals currently on that list totals 1197 and stems from various reasons including theft, cheating, child endangerment disorderly conduct, and using counterfeit currency.

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Compliance Updates

PandaScore secures their first US betting license, by entering Colorado

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After a meticulous and measured research process in consultation with the needs of its clients, PandaScore has acquired a license to operate in the US state of Colorado.

Through the license, PandaScore has signalled its intentions in the US market: forging a supplier-led path to esports betting success in the US. Existing PandaScore clients can now enter the Colorado market, scale up their esports offering and build their future audience in the stateā€™s esports-friendly regulatory framework.

Future clients can also be confident that working with PandaScore supports their growth strategy in the lucrative US market. The stateā€™s esports-friendly regulatory framework serves as a solid foundation to cultivate an esports audience and take advantage of PandaScoreā€™s innovative, revenue-driving products such as BetBuilder, player props and microbetting.

PandaScore selected Colorado as its first point of entry into US licensing thanks to the stateā€™s large catalogue of esports titles and competitions that are eligible for regular betting, and the wide range of markets that can be offered. Additionally, the stateā€™s flexible and innovation-friendly licensing regime makes it a strong market for PandaScore and its clients.

Securing the license also serves as proof of concept for the French esports supplier, PandaScore Legal Counsel Alexis Brunet noted that ā€œsecuring the Colorado license is a strong signal of our intentions in the US and are serious about its potential. Esports in the United States is a fast-evolving regulatory environment, but itā€™s only going in one direction: expansion. We intend to provide our best-in-class products and services to our customers no matter where they are, and service one of the largest markets in the world.ā€

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For PandaScore CEO Flavien Guillocheau, entry into Colorado in the US market was the natural next step in the companyā€™s client-first, service-oriented approach: ā€œFor esports to succeed in the US, suppliers must lead from the front. Suppliers need to address the uncertainty around regulation which has held back operator investment and thus growth of the vertical.

ā€œWeā€™ve proven we know the market, get a license efficiently and do it in a way that puts operators first. Weā€™re confident that if our clients are seeking entry into a given market, we can be completely straight with them, show them the viable pathway to success, and create the foundation and access they need to fully harness the potential of esports in one of its biggest consumer markets.ā€

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