Celebrating 75 Years of Serving Nevada’s Legal, Business, Government, and Civic Communities

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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In 2024, McDonald Carano celebrates 75 years of serving Nevada’s legal, business, government, and civic communities. More than 60 lawyers and government relations professionals serve Nevada, national, and international clients from our offices in Reno, Las Vegas, and Carson City. McDonald Carano provides legal services and government affairs and advocacy advice to startups, corporations, private companies, trade associations, nonprofits, public entities, high-net-worth individuals, and family offices throughout Nevada. We are proud to be your Nevada law firm since 1949.

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