The US Securities and Exchange Commission (SEC) has proposed a proposed rule that would ban online gambling operators from profiting from betting on sporting events.
The commission’s proposal would prohibit online casinos from profiteering from bets on sports, gambling, gaming or other similar activities that could result in money loss or loss of reputation, and would require that operators report to regulators every transaction.
The proposal would also require online casinos to file reports on each transaction, including any bets that are made with any virtual currency.
A statement released by the commission on Monday said the proposal “should ensure that online casinos do not engage in unlawful gambling activities”.
The proposal is the latest effort by the SEC to take on the industry.
The agency has already announced plans to investigate a number of gambling sites.
In June, it fined two casinos, Caesars Entertainment Group Inc and Bovada Inc, $1.7 million each for misleading investors about the success of their online gambling platforms.
A year earlier, the SEC fined a gambling company that operated a website that allowed users to make money betting on horse racing and the New York Mets, and ordered them to pay $3 million.
In December, the agency fined a California online gambling company $50,000 for selling products that made it appear that the sites were offering a guaranteed $1,000 payout every day, when in fact they were not.
In April, it issued a proposed order that would require online casino operators to collect and report on every transaction made with virtual currency such as bitcoin.
The proposed rules would apply to online casinos, but the commission is also considering rules that would make it easier for operators to engage in online gaming with real money.
A report last year by the Center for Responsible Gaming found that about half of all online casinos were in compliance with their regulations and some online casinos in the United States have paid millions in fines and fees.
The report noted that some online gaming platforms, such as Bovado, had raised more than $7.4 million in a one-day period in 2017.
The industry is in a unique position, as the commission regulates only one part of the online gambling industry: gambling on a casino floor.
The rulemaking process is complex and is intended to ensure that the industry is subject to the rules of the United State Securities and Exchanges Commission (USEC), which regulates other industries such as real estate, financial services and insurance.
This could make it more difficult for regulators to crack down on online gambling.
However, the commission has not said whether it will move forward with a final rule.