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Compliance Updates

$4.3 Billion Wagered Illegally During March Madness, Fueled by Social Media Influence

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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:

  1. Illegal gambling on March Madness comprised 64% of US online marketplace wagering ($4.3 billion Handle).
  2. Total value of March Madness betting (legal and illegal) amounts to a handle of $6.7bn.
  3. 378 illegal sports betting operators actively targeted the US.
  4. 651 affiliates promoted illegal sports betting operators that actively targeted the US.
  5. Illegals dominated social media content with up to 73% of all social posts in favor of illegal operators.
  6. 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

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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