Compliance Updates
$4.3 Billion Wagered Illegally During March Madness, Fueled by Social Media Influence
Latest analysis by online marketplace intelligence specialists, YieldSec, commissioned by the Campaign for Fairer Gambling (CFG), has revealed a stark contrast between legal and illegal online gambling activities during the 2024 NCAA Men’s & Women’s March Madness Basketball Tournaments in the US. YieldSec’s monitoring unveiled an overwhelming majority of betting-related social media posts and video content, reaching up to 73% and 78% respectively, directing audiences toward illegal betting and gambling operators.
YieldSec’s findings shed light on the strength of the illegal gambling grip on the American marketplace, with 378 illegal sports betting operators and 651 illicit affiliates aggressively targeting US March Madness audiences and claiming 64% of the total market share, generating $4.3 billion in illegal and untaxed wagering. The remaining $2.4 billion wagered legally amounts to just 36% of the total market share.
These statistics underscore the challenges in controlling the proliferation of unlicensed gambling operators that have historically capitalized on the fragmented legal landscape of online betting in the US.
Key findings for March Madness 2024:
- Illegal gambling on March Madness comprised 64% of US online marketplace wagering ($4.3 billion Handle).
- Total value of March Madness betting (legal and illegal) amounts to a handle of $6.7bn.
- 378 illegal sports betting operators actively targeted the US.
- 651 affiliates promoted illegal sports betting operators that actively targeted the US.
- Illegals dominated social media content with up to 73% of all social posts in favor of illegal operators.
- 78% of all video content that linked to March Madness betting was linked to illegal operators.
Derek Webb, Founder of CFG, said: “This Yield Sec special report illustrates the dire need for a comprehensive strategy to tackle illegal gambling in the US. The lack of a united government approach and lax oversight by states have only compounded the problem, enabling entities with dubious backgrounds to operate freely. It’s high time for U.S. leadership to spearhead a unified solution to this pervasive issue.”
Ismail Vali, Founder and CEO of YieldSec, said: “The overwhelming presence of illegal gambling during one of the biggest sports betting events of the year is a clear signal that enforcement and monitoring need to be prioritized. Our findings are a call to action for stakeholders across the board to intensify efforts in combating the spread of unlicensed gambling operations that exploit the online marketplace. With the dominance of illegals across our social media channels, it’s clear that the threats to American commerce, community and consumers are a lot closer to home than ever imagined.”
The Campaign for Fairer Gambling is now advocating for a cohesive governmental response to illegal gambling, urging the Department of Justice, Treasury, Federal Trade Commission, and the Trade Representative’s Office to consider the findings of the YieldSec report as a basis for developing effective countermeasures.
Compliance Updates
JCM Global Receives Approval to Operate in West Virginia
JCM Global announced that it has successfully passed regulatory review and received a manufacturer’s license from the West Virginia Lottery Commission. The license enables JCM to directly sell to and service customers in the state.
“At JCM, we are committed to our customers. While attaining licensing was not required, we pursued it because it allows us to directly provide JCM’s leading technology and advanced systems, backed by our world-class service, and support, resulting in faster service times and simplifying the entire relationship between JCM and our customers,” said JCM SVP – Sales, Marketing & Operations Dave Kubajak in a statement.
JCM recently announced it has attained licenses in Colorado and New Mexico, bringing the company’s total number of active gaming licenses to 177.
In West Virginia, JCM will provide technology, including the iVIZION bill validator; ICB Intelligent Cash Box System, which boosts security and efficiencies across the gaming floor; and the GEN5 thermal printer, which delivers TITO, personalized promotions, and rewards directly to the player.
Compliance Updates
SYNOT Games Officially Certifies Over 140 Games in Brazil
SYNOT Games has announced that more than 140 of its games have now been officially certified in Brazil.
“We are delighted to announce that more than 140 of our games have now been officially certified in Brazil. This significant achievement allows us to expand our reach and introduce a diverse selection of games to this dynamic market. Brazil represents a key opportunity for growth, and we are committed to delivering exceptional gaming experiences to the Brazilian audience,” the Company said.
“We are thrilled to introduce our portfolio in Brazil, offering innovative and engaging gameplay that promises to captivate and entertain players,” Martina Krajci, CCO at SYNOT Games, said.
Compliance Updates
Delasport Now GLI-Certified for Sports Betting in Brazil
Delasport has just become one of the first suppliers to obtain a GLI certification for its sportsbook in Brazil, two weeks before the historical regulation comes into effect.
Continuing its global growth, Delasport is bringing several operators on board in Brazil. In order to complete the process, operators that are applying for a new Brazilian license have 30 days to provide all relevant platform certificates from the moment that they are notified by the regulator that their initial submission has been accepted. This is also the moment that they can pay the license fee. Still, failure to provide platform certificates will result in the application being placed on hold.
Delasport turned to Gaming Laboratories International (GLI) for the certification of its sportsbook against Brazilian technical standards. The historical partnership with GLI was further strengthened by the news, a few months back, that GLI had become the first laboratory to achieve the local accreditation to certify for betting systems, live game studios, and online games by the Secretaria De Prêmios e Apostas (SPA) in Brazil.
Delasport has successfully met all technical requirements for providing its sports betting solution to the largest country in South America. The certificate is evidence of the team’s experience, expertise, and determination to lead the way in key jurisdictions.
Obtaining a GLI certification for Brazil is a step towards cementing the trust players and operators have for Delasport’s products. This serves to show that the award-winning supplier is capable of meeting even the strictest industry standards for integrity and fairness.
“When we learnt that providing platform certificates to the regulator was on our partner operators’ critical path for obtaining the license, we immediately prioritized submitting the system to GLI for testing”, Delasport’s Chief Compliance Officer Filippo Ferri said. “Needless to say, GLI did a tremendous job of working with us to conduct the tests in record time, to match the submission deadline of some of our clients. I am also very proud of how our internal departments worked together to obtain this certificate, and of how they continue to push forward with the delivery of a datavault system that complies with SIGAP requirements.”
Operators that plan on entering the newly regulated Brazilian market will now have numerous advantages if they partner with Delasport. They will be able to provide their players with personalization features like My Sportsbook, My Event Builder, and My Combo that skyrocket revenues and retention.
Furthermore, Delasport’s KYC and AML provider is a market leader that guarantees the highest level of compliance for all operators that choose to go on this route.
Also, Delasport has already partnered with numerous local payment system providers and offers a real-time AI-powered Responsible Gambling system which can easily adapt to local regulations.
Last, but not least, operators will feel Delasport’s support from the get-go all the way to establishing themselves as a market leader. Delasport is knowledgeable of cultural and regional differences and can address all localization needs from the early stages of engagement.
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