Welcome back to our weekly iGaming news roundup! We at Nostrabet dive deep into the iGaming world every week and bring you the latest trends, developments and insights from the industry. This week is no different because we had a lot of action all over the world, so let’s get started.
The New York Attorney General Is Suing Valve
Valve is one of the most recognizable gaming companies in the world, and it’s behind the likes of Counter-Strike 2, Dota 2 and Team Fortress. With that said, Valve is in trouble because the New York Attorney General Letitia James filed a complaint against it. The reason is that she believes Valve’s loot boxes are essentially gambling and target minors.
It’s worth noting that the USA (in the case NY) is not the only place taking action against these loot boxes. They are also regulated in places like Australia, where locals can access them only if they are over 18. In other countries, such as South Korea, companies must state the likelihood of obtaining a particular item.
The loot box model itself charges players for the chance to win a specific in-game cosmetic item. Even though the latter does not provide any benefits in the actual game, people can sell the item for real money online. Since many sources claim that the CS2 skin trading market alone is worth over $4B, it’s easy to see why this can get troublesome.
The NY Attorney General is seeking to stop Valve from promoting these products. This is definitely an interesting case and we will keep an eye on it until the end.
A Texas Mayor got Busted Following an Illegal Gambling Den
Texas is one of those places in the USA that is not gambling-friendly. People can’t access online casinos and sports betting websites, so you can often find various illegal gambling dens. The latest one is a lot more interesting than before because it includes a major in Hot Water. It’s about an illegal gambling den he was running in the back of his laundromat business.
Our information states that Christopher Armascot is the mayor of Hitchcock and he set this business in the backroom of a laundromat. Aside from him, the authorities also found several other individuals and arrested them. The police also seized various gambling equipment from the property, including devices that looked very similar to slots.
An interesting fact is that the major will try to defend his case as a private citizen.
Wynn Casino Confirmed the Security Breach and Is Ready for Its First Lawsuit
There was a big security breach within Wynn Resorts that affected more than 800,000 employee records. Needless to say, this had a huge effect on the company in the stock market, and now it’s also facing its first lawsuit.
According to all of the information, there has been an unauthorized third-party access that “stole” employee data. Once it became clear that the damage had been done, the company offered everyone two years of credit monitoring and identity protection.
An interesting fact is that the breach occurred after a ransom demand of $ 1.5M. The latter came from a group of hackers, but no one knows whether Wynn actually paid them. What we do know is that the company’s stock fell by almost 6% and it’s now facing its first lawsuit in the US District Court of Nevada.
People in Massachusetts are not fully sure about iGaming Yet
There’s been an interesting debate over the legalization of online casinos in Massachusetts. We had two recent polls and the two show completely different results.
The first one is from last month and it found that most residents are sceptical about the legalization of online casinos. More than half of all respondents opposed legalization and many were concerned that local authorities wouldn’t be able to handle it. In fact, there is almost no trust in lawmakers to oversee iGaming, and people even believe that the current tech won’t be enough to prevent underage users from playing.
With that said, there was a separate research poll shortly after that that reached the opposite conclusion. Based on it, people are for the iGaming legalization in the state mainly because of the concern related to offshore gambling. Many people also seem to acknowledge that the iGaming industry will result in fiscal benefits.
Industry advocates contend that legalization brings gambling into a regulated environment with built-in consumer protections. Considering that so many states have already made the legislative changes, we believe it’s a matter of time before Massachusetts joins them.
Mexico to Regulate its Gambling Ads
It seems like Mexico may become the latest country to regulate gambling ads. Local authorities are trying to find a way to restrict gambling ads on TV to after 10:30 PM so that they can protect minors. The suggestion comes from Jerico Abramo Masso, the Federal deputy.
Masso explains that gambling ads usually air during live sporting events, exposing children to them. If the legislation becomes a reality, it will restrict gambling. Moreover, companies will only be able to run them after 10:30 PM.
It’s important to know that this legislative initiative is a part of a much broader push to regulate the gambling sector. The tax administration in Mexico recently made changes regarding the online betting platform, online casinos, and live betting services. There was also a rise in the Special Tax on different products and services from gambling and it’s now at 50%. This squeezes margins and adds financial strains on operators.
More and More People Contact the Gambling Helpline in Florida
Interestingly, the gambling helpline in Florida seems to be experiencing a surge in calls and texts. The stats show that there were a total of 1335 calls in 2024 related to online gambling, which is almost 3x more than the one in 2023.
Although young men are the most frequent users of these services, the authorities note that women are also calling in. A large percentage of those who contact these institutions have lost a lot of money. The average person has around $22,000 in debt.
The fact that more people are experiencing issues related to online gambling is probably not surprising to most of you. It’s the big reason why regulators are becoming more demanding and sites have to introduce new ways to let people control their gambling behaviour.
A Solicitor in Sydney Store $15M from Clients to Gamble
It’s been a while since we had a betting scandal in Australia. The most recent one comes from a solicitor called Benjamin Paul Reid. He was accused of stealing $15M from his clients while working at the Bondi Junction law firm. Based on the information, he has used the money to fund his account on an online betting site.
The 45-year-old solicitor was charged this week and it seems like he placed over 30 bets a day using 4 separate betting sites. The investigation has been going on for almost one year after it became clear that Mr. Reid had accessed customers’ funds
The court granted the solicitor bail, but he cannot work on any financial matters or participate in any gambling activities.
Cambodia Revoked Several Casino Licenses Due to Connections with Chen Zhi
Cambodia decided to step up its game and took action against several casinos in its recent crackdown on cybercrime. The local authorities revoked the licenses of 4 casinos that were linked to Chen Zhi, also known as the “Chinese Scam King”. Many sources believe that his Phnom Penh casino, called Prince Group, is among the world’s largest online fraud venues.
But who is Chen Zhi? Well, he is a Chinese national who relocated to Cambodia and is the owner of the Price Group Holding. Some stats say the company made over $30M a day at one point. Unsurprisingly, many believe the money is tied to illegal activities.
It seems Cambodia is trying to improve its image, as local authorities are taking action against Zhi’s empire. In fact, the country arrested and him in January and deported him back to China.
Swedish Teens are Facing Gambling Problems
It seems like there is an increasing number of Swedish children and teens who have problems with gambling. Based on a recent report, the current regulatory system is insufficient as there are no specific methods for preventing, detecting or even treating gambling addiction among minors. All of this comes at a time when Sweden is becoming one of the leading gambling markets in Europe.
Some people believe that video games also contribute to this problem. Due to the loot boxes, which allow players to purchase something without knowing exactly what they get. This mechanism seems to blur the lines between casual playing and gambling. It also makes it hard for young people to understand the risks that come along with it.
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