Legendz Sportsbook Returns to US Market With New Social Sportsbook

Over 10 years after Legendz Sportsbook was banned in the US, the controversial operator is back and bigger than ever.

Legendz launched its social sportsbook in 43 US markets on Monday. The free-to-play style used by the new platform allows it to avoid US laws that took its offshore sportsbook down in 2013. The new social sportsbook is available across the US, except for seven states:

• Idaho
• Michigan
• Nebraska
• Nevada
• North Dakota
• Ohio
• Washington

Legendz Exploits Loophole in US Sports Betting Law

The Legendz brand operated one of the most popular offshore sportsbooks in the US for years. However, the government banned the operator in 2013, years before sports betting became legal. That made it unlikely they could return with their sportsbook after PASPA was repealed, but it appears the operator has found another way back in.

The operator has added a social sportsbook, which is currently legal in most of the US. That allowed Legendz to re-enter the US without the rigorous licensing process. While social sportsbooks are less profitable, they give the exiled operator a new foothold in the US market.

Regulations Could be Coming to Social Sportsbook Industry

Social sportsbooks are allowed to operate outside the regulations set for standard platforms. That is because they do not have customers wager actual money. Instead, they must buy packs of gold coins to place wagers. While winnings are not paid out in cash, they can be used to claim prizes.

The lack of real-money wagers allows these platforms to operate in states where online sports betting isn’t legal. While that is good news for many bettors, the industry is gaining powerful enemies.

One of those enemies is the American Gaming Association, which lobbies on behalf of the sports betting industry. The group created a new policy in August that questioned the fairness of the social sportsbook industry. That includes the threat of problem gambling, especially with operators not needing to follow market regulations.

On top of the potential danger to customers, social sportsbooks are also not subject to the tax that regular platforms are subject to. 

Return Could Spurn Change

While social casinos and sportsbooks have been under fire over the last couple of years, Legendz's return could ramp that up. The brand is most associated with illegally operating in the US, meaning regulators are already wary of its return. That could lead to extra attention for the platform, especially in states like Massachusetts, where regulators have been especially tough.

Legendz will also operate in two of the country's largest markets that have not legalized sports betting: Texas and California. If the sportsbook can find success in its return, it could help boost support to legalize sports betting after years of legislative deadlock.