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The gambling watchdog of Isle of Man has hit a former online betting company with a £200,000 ($273,000) penalty after an inspection exposed deep flaws in its anti-money-laundering (AML) controls.

The action was announced on Friday (February 6), when the Gambling Supervision Commission published the results of an enforcement investigation into Shelgeyr Limited.

Shelgeyr operated under an Isle of Man licence from November 2018 until July 2024, when it voluntarily gave up its approval to offer online gambling services.

Details of the enforcement action

Regulators said the review uncovered repeated breaches of the Gambling (Anti-Money Laundering and Countering the Financing of Terrorism) Code 2019.

According to the commission, the company fell short across core safeguards, including enhanced due diligence, customer checks, record-keeping, risk assessments and ongoing monitoring of player activity.

Inspectors found that accounts were left open without the extra scrutiny required for higher-risk customers, even after red flags had been identified.

The regulator said Shelgeyr could not show that it had properly established customers’ source of wealth, applied enhanced checks to politically exposed persons or consistently monitored accounts over time.

Required documentation was either missing or poorly maintained, leaving gaps in audit trails that are meant to demonstrate compliance with the law.

In setting the penalty, the commission said the fine reflects the “serious nature” of the non-compliance.

At the same time, it acknowledged that the company and its senior staff cooperated fully during the investigation, which led to a reduction under the regulator’s discretionary penalty policy.

The commission said the outcome is meant to reinforce its statutory duties, including protecting customers, limiting financial crime and safeguarding confidence in the island’s gambling industry.

It also reminded boards and compliance teams that strong oversight, documented controls and demonstrable adherence to AML and counter-terrorist financing rules are expected at all times.

Under Isle of Man law, gambling businesses are subject to strict anti-money-laundering requirements designed to stop criminal misuse of betting platforms.

The commission has powers to impose civil penalties where inspections point to prima facie breaches, and it publishes enforcement outcomes to promote transparency and higher standards.

By making the findings public, the watchdog aims to send a clear signal that failures uncovered during routine inspections can carry financial and reputational consequences.

Although Shelgeyr no longer holds a licence, the commission said former operators remain accountable for conduct during their licensed period, particularly where customer protection and crime prevention are concerned.

The Shelgeyr case adds to a growing list of enforcement actions in recent years, including hitting online casinos SK IOM and Celton Manx with fines in July 2025.

Featured image: Canva
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The Dutch gambling watchdog has formally contacted One Casino and bet365 after discovering that both companies briefly offered betting markets that are banned under national law. The Kansspelautoriteit, known as the Ksa, confirmed the action in a statement released on Friday (February 6).

At the center of the issue were wagers tied to soccer matches involving players under the age of 21. Dutch rules strictly prohibit these bets, largely because younger athletes are considered more susceptible to pressure and potential manipulation. Regulators say those risks are high enough that such markets are not allowed under any circumstances.

Dutch regulator flags under-21 soccer betting violations by bet365 and One Casino

The matter came to light during a broader review of betting products offered by licensed operators last year. During that review, the Ksa found that both One Casino and bet365 had listed bets on an under-21 soccer match, putting them in breach of the Wet op de kansspelen, the country’s gambling legislation that governs remote betting.

According to the regulator, the violations were not the result of deliberate policy decisions but of technical and classification failures within each company’s systems. Even so, the Ksa stressed that these explanations do not remove responsibility from the operators involved.

In the case of One Casino, an internal error meant an under-21 fixture was incorrectly labeled as an international friendly. Because of that mislabeling, the betting platform automatically made wagers available to customers. Once the Ksa alerted the operator, One Casino removed the market, canceled the affected bets, and compensated players who had already placed wagers. The company also said it would strengthen internal controls to prevent similar mistakes.

bet365 ran into a comparable problem. A registration issue within its system caused a prohibited under-21 bet to appear on its platform. After questions from the regulator, the company corrected the error, carried out an internal review, and added further automated checks designed to stop unlawful markets from being published again.

The Ksa stressed that licensed operators are expected to ensure compliance at all times. Even when mistakes stem from software or data issues, the regulator said the duty to prevent illegal betting options remains squarely with the provider.

As part of its broader push for integrity in sports betting, the regulator also pointed to updated guidance released in December 2025. The document, titled “Inzet op integriteit”, is intended to help betting companies better assess risks and avoid offering bet types that could undermine fair play or violate Dutch law.
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Two Connecticut residents have been charged with using thousands of stolen identities to defraud online gambling sites, including FanDuel, of more than $3 million.

The charges were filed against Glastonbury, Connecticut, residents Amitoj Kapoor (29) and Siddharth Lillaney (29) following their arrest by local law enforcement. 

Kapoor and Lillaney face 45-count federal gambling indictment

Both men appeared before U.S. Magistrate Judge Maria E. Garcia and a federal grand jury in New Haven, according to the U.S. Attorney’s Office for the District of Connecticut, and were each released on a $300,000 bond.

Glastonbury Men Charged with Using Thousands of Stolen Identities to Defraud FanDuel and Other Online Gambling Sites of $3 Million @IRS_CI @CTDCP https://t.co/T2QjjCX2eG— U.S. Attorney CT (@USAO_CT) February 6, 2026

United States Attorney for the District of Connecticut David X. Sullivan, Thomas Demeo, Special Agent in Charge of IRS Criminal Investigation in New England, and Bryan T. Cafferelli, Commissioner of the Connecticut Department of Consumer Protection, released the news as a joint statement.

Which read the 45-count indictment was returned via grand jury on the “fraud, identity theft, and money laundering offenses stemming from a scheme to use stolen identities to defraud FanDuel and other online gambling companies of millions of dollars.” 

Conspiracy to defraud gambling giants

The court documents leading to the 45-count indictment stated that both men had used various tools to mine personally identifiable information (PII) from Connecticut victims. 

“Individuals who commit identity theft of this magnitude deserve to be punished to the fullest extent of the law,” said Demeo. “It’s alleged those charged caused immeasurable hardship to the victims of their identity theft scheme.”

According to the court papers, these allegations of data theft were used to exploit promotional “bonuses,” “credits,” or “bonus bets” offered when a user opened an account or placed an initial bet.

The men reportedly operated two website accounts for BeenVerified.com and TruthFinder.com to “obtain additional background information” on prospective victims.

The court alleged that the pair would use fraudulent accounts to take winnings and bonus bets and transfer them to a virtual card.

This was “backed by an FDIC-insured financial institution, which FanDuel allowed account holders to use to make deposits to and withdrawals from their FanDuel account.” 

Data theft and fraud allegations at the heart of FanDuel Connecticut case

Data theft is a serious crime in the U.S., and using stolen data to impersonate any individual carries some substantial custodial jail time. Coupled with allegations that the pair used this data from a “darknet” or illegal market connections via Telegram, explain the severity of these myriad charges. 

These allegations against Kapoor and Lillaney include: 

23 counts of wire fraud, each carrying a maximum term of imprisonment of 20 years

10 counts of money laundering, each carrying a maximum term of imprisonment of 20 years

8 counts of identity fraud, each carrying a maximum term of imprisonment of 15 years

Conspiracy to commit wire fraud and identity fraud, each carrying a maximum term of imprisonment of 5 years

2 counts of aggravated identity theft, an offense that carries a mandatory consecutive term of imprisonment of 2 years

one count of money laundering conspiracy, an offense that carries a maximum term of imprisonment of 20 years 

The prosecuting parties have given a timeframe of the supposed fraud, with their documents showing that as early as 2021, Kapoor and Lillaney used “the PII of approximately 3,000 identity theft victims to open FanDuel and other online gambling accounts, and generated approximately $3 million in profits during the scheme.” 

Assistant U.S. Attorney Michael S. McGarry is prosecuting Kapoor and Lillaney, based on the basis of information presented by the Internal Revenue Service, Criminal Investigation Division, and the Connecticut Department of Consumer Protection (DCP).

FanDuel is the online gaming operator for Mohegan Sun Casino.

“Fraud, identity theft, and the misuse of personal information have no place in a regulated marketplace. We commend the federal and state authorities for their work and decisive action in this case,” said James Gessner Jr., Mohegan Tribal Chairman, in a separate press release.

“We continue to invest in advanced systems, responsible gaming tools, and fraud‑prevention measures to ensure a safe and secure experience for every player online and in all other areas of our business. Cases like this highlight the critical advantages of regulated iGaming, where strict oversight and close coordination with law enforcement protect consumers far more than unregulated alternatives. Mohegan remains committed to strong consumer protection regulations, preventing underage and problem gaming, and stopping fraud.”

“Although it may have started as a gaming-related investigation, the scope of the alleged identity theft and fraud, with thousands of potential victims across the country, quickly became the primary focus of this investigation,” said DCP Commissioner Bryan T. Cafferelli.

“Identity theft is a serious crime that can have lasting consequences for victims. We are proud of the work our team has done to result in these arrests, and grateful to the IRS Investigators and U.S. Attorney’s Office for assisting in our investigation and pursuing this case,” added DCP Gaming Director Kris Gilman.

Featured image: “CT – New Haven: United States Post Office and Courthouse” by Wally Gobetz / CC BY-NC-ND 2.0

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A federal judge in Nevada has shut down Coinbase Financial Markets Inc.’s last-ditch effort to stop state gambling regulators from cracking down on its event-based trading products, clearing the way for the case to continue in state court.

In a February 7 order, U.S. District Judge Cristina D. Silva denied Coinbase’s request for a temporary restraining order and a preliminary injunction. She also dismissed the company’s federal lawsuit without prejudice, ending the case and sending the dispute back where it started.

That leaves Coinbase facing an active civil enforcement action in Carson City, brought by the Nevada Gaming Control Board. State regulators allege the company has been offering illegal gambling products in Nevada without the licenses required under state law.

Defendants dispute the contracts are ‘paradigmatic swaps.’ They contend Coinbase’s offerings meet the NRS definitions of ‘gaming,’ ‘game,’ ‘sports pool,’ and ‘wager.’Coinbase vs Aaron D. Ford, et al

At issue are event contracts tied to the outcomes of sporting events and other real-world occurrences. Nevada regulators say those contracts function like sports betting and fall squarely under the Nevada Gaming Control Act. Coinbase argues they are financial derivatives regulated at the federal level, not gambling, and therefore outside the state’s authority.

Judge Silva never reached that central disagreement. Instead, she focused on whether a federal court could intervene at all while Nevada’s enforcement case is already underway.

Why the federal court stepped aside

The state case was filed by the Nevada Gaming Control Board earlier this month as a civil enforcement action against Coinbase Financial Markets Inc. Regulators allege the company offered event-based contracts to Nevada residents without holding a gaming license and allowed people under 21 to participate.

“The Board takes seriously its obligation to operate a thriving gaming industry and to protect Nevada citizens. The action taken yesterday reinforces this obligation,” said Chairman Mike Dreitzer.

The board is seeking an injunction to stop the offerings in Nevada, along with civil penalties and other remedies allowed under state law. In its filings, the board describes the contracts as illegal wagering on sporting events and other outcomes.

A state court judge granted an ex parte temporary restraining order on February 5, immediately barring Coinbase from continuing to offer the contracts in Nevada. Coinbase had rushed to federal court the day before, asking for emergency relief to block the state from enforcing its gambling laws.

https://twitter.com/MickBransfield/status/2020480028585148738

Coinbase told the federal court that its contracts are “paradigmatic swaps” governed exclusively by federal commodities law and overseen by the Commodity Futures Trading Commission. On that basis, the company argued Nevada had no authority to regulate or shut down the products.

Judge Silva said her court was required to stay out of the dispute under the Younger doctrine, which generally prevents federal courts from interfering with ongoing state proceedings. She found all three elements for abstention were present: the state case is ongoing, it involves important state interests, and Coinbase has the opportunity to raise its federal arguments in state court.

Regulating gambling, she wrote, is a core state function. She also pointed to the fact that Nevada itself initiated the enforcement action, undermining Coinbase’s claim that the state lacked a legitimate interest. The judge rejected Coinbase’s argument that “extraordinary circumstances” justified federal intervention, saying frustration with the timing of the state’s lawsuit did not meet that standard.

Judge Silva added that even if abstention did not apply, the Anti-Injunction Act would independently bar the relief Coinbase sought. With no exceptions available, she denied the emergency motion, dismissed the complaint, and ordered the case closed.

For now, Coinbase’s fight over its event-based contracts moves entirely to Nevada state court, where the enforcement case and temporary restraining order remain in effect.

Featured image: Coinbase / Canva
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The predictions market company DraftKings has announced an agreement with the cryptocurrency platform and CFTC-regulated derivatives exchange Crypto.com.

The duo have come together to broaden the prediction markets available on DraftKings Predictions, with the expansion marketing the first player-specific sports event contracts offered on the platform for both the NFL and NBA. 

.@DraftKings Expands Prediction Markets Catalog in Deal With @cryptocom New exchange connection brings first player-specific sports event contracts to @DKPredictions More: https://t.co/F71hYxmFYE pic.twitter.com/kpSxIMLv8C— DraftKings News (@DraftKingsNews) February 6, 2026

“We’re continuing to build momentum behind DraftKings Predictions by leveraging our expertise across sports and technology and integrating additional CFTC-regulated exchanges like Crypto.com,” said Jeanine Hightower-Sellitto, Senior Vice President and General Manager of DraftKings Predictions. 

“This collaboration meaningfully expands customer access to trade on sports and a broader range of prediction markets and also reinforces our focus on delivering a more comprehensive and engaging experience as the product continues to evolve.”

DraftKings connects another exchange: Crypto.com

Also as part of this expansion, DraftKings Predictions says it adds breadth across sports prediction markets in the states where the product is available, including soccer, MMA, golf, boxing, tennis, and the Olympic Games. These are in addition to the existing sports and financial markets provided by CME Group.

When the platform first launched, back in mid-December 2025, the company explained how it had planned to connect to multiple exchanges, but they began with the CME Group at launch. Now, it appears these plans are coming to fruition as the company integrates another.

“Crypto.com continues to lead the way with innovative collaboration. Connecting with DraftKings, a household name in sports, is an important milestone for us because it allows us to not only expand access to prediction markets in sports, but it grows our distribution to prediction markets on cryptocurrencies, financials, companies, politics, culture, entertainment and beyond,” said Travis McGhee, Global Head of Predictions at Crypto.com.

“We are thrilled to work with DraftKings, and we look forward to creating an engaging experience together for customers across the country.”

Featured Image: Via DraftKings
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