Prediction Strike, a self-described fantasy sports stock market platform, is reportedly under investigation in both Ohio and New Jersey as US regulators crack down on operators offering betting under the guise of DFS sites.
As reported by Legal Sports Report, the Ohio Casino Control Commission is investigating Prediction Strike alongside four other websites for allegedly offering prop bets without a sports betting license in the state.
It came after the OCCC conducted its monthly meeting last week, in which officials bemoaned the potentially illegal activity taking place in the Buckeye State and noting the commission would crack down on such operators.
Without specific reference to Prediction Strike, the Executive Director of the OCCC Matt Schuler said: “In every part of gaming that we regulate, there are always challenges with skill games, it’s illegal casinos masquerading as games of skill.
“We talked about these contests that they offer proposition wagers, which are part of sports gaming against the house, but trying to call them fantasy contests. There’s an army of these out there and the staff has a regular course of action scanning out there to see who’s doing business in the state of Ohio.”
Whilst the OCCC conducts its investigation into Prediction Strike amongst others, it has also emerged that the New Jersey Division of Gaming Enforcement had sent a cease-and-desist letter to the platform back in January, owing to similar violations identified from its operations in the Garden State.
Following multiple letters dating back to last November, the DGE requested a “detailed description of the services that Prediction Strike is offering in New Jersey, as well as any legal opinions you may have concerning the legality of this activity”, the regulator was not satisfied with the response.
Cease-and-desist letters have proven to be an effective way of removing illegal operators in Ohio. The OCCC sent a document to PlayUp regarding its Slot+ product, which eventually led to the company leaving the state as well as paying fees up to $120k as well as not applying for an Ohio license for up to four years.
Schuler added in the meeting: “(We are) getting really good at cease and desist letters, and ready to go forward work with Joe Szymanski if necessary, but the cease and desist have worked pretty well to date. But this is ongoing, this is an ongoing thing.”