Regulators from four states grouped to charge an NFT casino with various securities violations. New Jersey, Alabama, Texas, and Kentucky regulators told Slotie NFT to cease its operations.
The gambling company claimed to be the blockchain’s most significant and fastest-growing online gaming network. However, the best pay per head providers begged to disagree.
As a company that runs gambling games in over 150 online casinos, Slotie offers NFTs to its customers that purport to provide them a stake in Slotie’s virtual casinos and a passive stake in the company’s gaming earnings. With 10,000 NFTs released by Slotie, the more valuable ones provide their holders to more outstanding shares of the casino’s earnings. However, it is only one of the many NFT projects providing its customers with the same or equivalent benefits.
NFT Casino Violated Securities Laws
State regulators found that the NFTs were securities that were sold without being registered, which was against state law. In the four states that filed orders, they told Slotie to stop selling its NFTs immediately.
Slotie has 30 days to follow the orders, or its operators could face two to ten years in prison and fines if they are charged and found guilty.
On the other hand, the gambling company hasn’t said anything about the accusations, and today on Twitter, it’s doubling down on the ways it’s supposedly breaking the law.
The move comes when tensions about how American regulators treat NFTs seem at their highest level. Up until now, regulators have been very quiet about their plans to regulate NFTs as securities. However, recent events suggest that this could soon change. It is not the typical way on how do bookies make money.
Bookie pay per head services providers think it makes sense that an NFT project like Slotie would be one of the first to get in trouble with a securities regulator.
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