Will Fraud Charges Brought By SEC Be The Death Knell For Entity Sports Betting?
July 31, 2019, Gambling Compliance, by Tony Batt
The future of entity sports betting is becoming increasingly uncertain after the U.S. Securities and Exchange Commission (SEC) charged a defunct Nevada company with defrauding investors. The SEC on Monday alleged Bettor Investments, LLC of Reno, Nevada and its sole employee, Matthew C. Stuart of Post Falls, Idaho, illegally collected about $145,000 from around 70 investors by selling stakes in a sports betting entity, constituting an unregistered sale of securities. The SEC filed its complaint in federal district court in Las Vegas. Nevada passed legislation in 2015 that allows out-of-state gamblers to establish betting accounts with entity wagering operators such as Bettor Investments.
Frequently described as a sports betting mutual fund, entity wagering enables companies to collect money from investors to make bets on sporting events. In exchange for surrendering their input on bets, the gamblers or investors share the revenue produced by the entity’s wagering pool. In the four years since being legalized in Nevada, entity wagering companies continue to struggle to make a significant impact on the sports betting market. Moreover, this was not the first time an entity sports betting operation in Nevada has been accused of running afoul of SEC regulations. To read entire article click here.
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