The South Dakota Commission on Gaming is the latest regulatory body to warn the public about the prevalence of unauthorized online casinos.
The commission has released a PSA notifying the public about an increase in unlicensed online casino platforms posing as licensed gaming entities throughout the state. The South Dakota regulator issued its warning as online casino-style games are not authorized under state gaming law. The commission has identified an increase in misleading marketing and fake websites that attempt to deceive South Dakota residents and visitors.
The misleading advertisements by unlicensed platforms in South Dakota include logos and marks that replicate advertisements from state-sanctioned commercial and tribal casinos. The South Dakota Commission on Gaming also reported instances of unauthorized online casinos providing players with “guaranteed winnings” and “unrealistic bonuses.”
South Dakota’s gaming regulator is urging bettors in the state to proceed with caution when engaging with advertisements and offerings provided by unlicensed online casinos.
The commission is taking a stance against unlicensed online casinos to protect players throughout South Dakota from financial losses and identity theft. The regulator is warning the public about unlicensed online casinos as they face regulatory scrutiny nationwide.
“The South Dakota Commission on Gaming remains committed to protecting the integrity of legal gaming in our state and safeguarding consumers from fraud and abuse,” said the commission in its PSA.
Tech giant takes steps to curtail unlicensed operators
The South Dakota Commission on Gaming is warning the public about fake online casino marketing after Meta implemented new advertising rules for gambling-related materials. The new rules were put into place to thwart ads from illegal and unlicensed platforms.
The advertising rules apply to Meta’s Facebook and Instagram social media platforms.
Meta is requiring entities that want to advertise with the tech giant to request authorization through its Permissions and Verifications portal offered through its Business Suite offering.
The portal requires advertisers to select whether they are an operator, aggregator, or affiliate. Entities that want to advertise must also share what territories they want to target.
Meta’s advertising rules for gambling require brands not to target anyone under 18. Entities are also mandated to provide Meta with their legal business names, websites and proof of gaming licensing before submitting an application through the portal for Meta’s review.
Meta is also requiring influencers who share gaming-related ads to register as affiliates, but the company is allowing advertisers to run ads for social casinos and free-to-play offerings with no prior authorization. Meta’s new advertising rules do not explicitly mention online sweepstakes and have yet to have an impact on unlicensed brands in South Dakota.
“The South Dakota Commission on Gaming is not aware of an impact from Meta’s advertising changes on unlicensed operators within the state,” a spokesperson from the regulator told SBC Americas.
South Dakota joins Arizona with gaming-related PSA
Earlier this year, the Arizona Department of Gaming (ADG) published a PSA warning bettors in the state about the dangers associated with interacting with unauthorized online casinos and sweepstakes platforms. The ADG sent a warning about online casinos and sweepstakes with only certain free-to-play games legal in the state. Active gaming law in Arizona does not provide an explicit definition for sweepstakes gaming. The state does have a strict set of standards for permissible F2P games, which require “no consideration or purchase” and “no added requirements or limitations on free participation.”
