As scrutiny turns to regulatory gambling commissions in Nevada and Texas, we’ve got a bumper edition of Letter from America this week. Let’s just say there’s been one too many betting scandals hitting headlines. So buckle up.
Double Whammy For Wynn
Wynn Resorts Las Vegas (WLV) has been hit with a US$5.5 million (£4.18m) fine from the Nevada Gaming Control Board (NGCB) – the latest in a string of money laundering penalties against major Vegas casinos.
The penalty relates to the same schemes behind last year’s US$130 million (£98.8m) federal forfeiture , when Wynn admitted to conspiring with unlicensed money transmitters to funnel funds globally and enable proxy betting.
WLV, still mourning the recent loss of their inspirational Co-founder Elaine Wynn, said they were happy to accept responsibility, pay up and close this murky chapter in their history.
Wynn Resorts is the third leading Vegas casino to be sanctioned for money laundering this year. All these breaches have been uncovered by federal investigations – not by the NGCB. And many industry experts are now beginning to question whether the commission is asleep at the wheel, or simply not up to the job.
Out Of The Race
In a second set-back, Wynn Resorts has also dropped out of the Great New York Casino Race. Their proposed US$12 billion (£9.15bn) Hudson Yards West project has effectively been scuppered by strong opposition from local residents – and consequently withdrawn by the Vegas heavy-hitters.
“The recent re-zoning process has made it clear to us that there are [better] uses for our capital,” Wynn affirmed in a media statement. “[We have better options] such as investment in our existing and upcoming developments and stock buybacks, than investing in an area in which we–or any casino operator–will face years of persistent opposition.”
Wynn is the second bidder to drop out of the New York City casino resort race, following Las Vegas Sands, who withdrew in April after fielding poor Q1 results. At the time, Sands also cited the looming threat of uncertain iGaming legalisation as a reason for quitting the Big Apple.
Texas Lottery Shoot-out
Is the embattled Texas Lottery Commission (TLC) on the cusp of being scrapped? That’s the proverbial 64,000 dollar question after the Lone Star state’s senate unanimously passed SB 3070 – a bill that seeks to dismantle the commission, shift oversight to the Department of Licensing and Regulation, and restrict how tickets are purchased.
It comes just days after an investigation revealed how a gambling syndicate, led by a man named as Zeljko Ranogajec, rigged a US$95 million (£72.2m) jackpot in 2023 by purchasing 99 percent of all possible combinations using QR codes at just four retailers.
Adding fuel to the fire, TLC head Ryan Mindell, only in the role for less than a year, quietly stepped down amid scrutiny over two more recent jackpots totalling over US$200 million (£152m).
SB 3070 now heads to the Texas House of Representatives. If passed, it will go to Governor Greg Abbott (R) for final approval. Ominously, the bill also mandates a 2027 review that could shut down the lottery altogether.
Lt. Gov. Dan Patrick (R) told The Texas Tribune: “They [the lottery commission] have a two-year lease on life. We’ll see what happens under the new agency.”
White Flag Or Smoke Screen?
Amid distraction from prediction markets on multiple fronts, six sweepstake operators have raised their stake in the future of U.S. gaming.
Led by former U.S. congressman Jeff Duncan (R) and VGW–operator of Chumba Casino, LuckyLand Slots and Global Poker–the newly formed Social Gaming Leadership Alliance aims to unify the industry’s voice and lobbying power.
“Social games industry leaders are already investing heavily in financial security, data privacy, responsible social gameplay and consumer protections. And they are ready and open to sensible regulation,” explained Duncan.
Added VGW CEO Laurence Escalante: “We’re excited to establish this alliance [to promote] the highest standards of player protection and industry integrity, while advocating for sensible regulatory frameworks that reflect the role of online social games as a safe and growing component of the interactive entertainment industry.”
After cease-and-desist orders and state-level crackdowns, one key question remains: Are sweepstakes operators truly serious about reform? Or is this latest activity just smoke and mirrors?
iGaming Shines in GGR Round-Up
The latest GGR figures are out and April 2025 gambling revenue paints a mixed picture as New Jersey, Michigan and Pennsylvania report skyrocketing iGaming but struggling sports betting GGR.
New Jersey: Total GGR hit US$536.6 million (£407.8m), up five percent year-over-year. iGaming soared 25.2 percent to US$235.2 million (£178.7m), led by FanDuel, but online sports betting dropped 15.7 percent. Land-based casinos also dipped 2.7 percent to US$211 million (£160.4m). The state collected US$59.8 million (£45.4m) in taxes.
Michigan: Online iGaming and sports betting raked in US$290.7 million (£229.65m) in revenue, with iGaming surging 33.9 percent. But sports betting slipped by 3.6 percent, y-o-y. Land-based casinos earned US$109.8 million (£83.4m), while retail sports betting was down by 44.6 percent. The state grossed US$49.6 million (£37.7m) in taxes from the online sector.
Pennsylvania: Total GGR reached US$558.7 million (£424.6m), up 10.7 percent, y-o-y. iGaming, rising by 31.3 percent, also led the charge in Penn state; while sports betting remained flat, increasing just 0.29 percent. Land-based revenue remained stable. The state collected US$243.4 million (£184.9m) in taxes.
That’s all folks.
Stay tuned for the next edition of iGF’s essential “Letter From America”.
