Two U.S states issued cease-and-desist orders to Sands Vegas Casino Club for NFT sales.
Sands Vegas Casino Club reportedly sold NFTs to fund a Metaverse casino.
NFT holders can earn revenue shares of metaverse casinos.
Online gambling has gained significant traction over the years. The evolution of NFTs and the Metaverse offer online gambling platforms a new avenue to explore and take the gambling experience to a whole new level.
Texas and Alabama Issue Sands Vegas Cease-and-Desist Orders
On Wednesday, U.S regulators from two U.S states issued Sands Vegas Casino Club with cease-and-desist orders.
The two states have stated that the online casino has sold NFTs to fund operations. According to the state laws of Alabama and Texas, the NFTs constituted an illegal securities offering.
According to a Texas State Securities Board press release, the virtual casino offered,
“11,111 Gambler NFTs in connection with their development metaverse casinos in popular metaverses such as the Sandbox, Decentraland, Infinity Void, and NFT Worlds.”
The press release goes on to say,
“Gamblers, acting through avatars, can enter the metaverse casino and play poker and other games using cryptocurrencies. Purchasers of the Gambler NFTs profit from these operations. Not only do they become owners of the metaverse casinos, but they also purportedly share in half the profits generated.”
The State of Alabama Securities Commission also issued a press release regarding their cease-and-desist order.
According to the Sand Vegas roadmap, Sand Vegas Casino acquired 27 plots in Sandbox (SAND) in January 2022. The virtual casino also aimed to meet all regulatory/legal requirements between March and August 2022.
At the time of writing, the Sand Vegas Casino Club was up and running, with NFTs available for sale on OpenSea.
Virtual Casino Growth Likely to Draw Greater Regulatory Scrutiny
Casinos are making big money in the Metaverse, with growth likely to continue as more mainstream casinos tiptoe into the virtual world.
According to Casino.org, Decentraland’s (MANA) ICE Poker reported revenue of $7.5 in three months. Decentraland reportedly invested in Decentral Games, a DAO focused on delivering the Metaverse casino ICE Poker. ICE Poker launched in October 2021.
Decentral Games founder Miles Anthony stated,
“The casino has around 6,000 users every single day and can have more than 1,000 users playing poker at any given time.”
This article was originally posted on FX Empire