FT. LAUDERDALE, Fla. – State regulators face significant challenges in combatting the rapidly expanding unregulated and illegal gaming market. During this month’s SBC Summit Americas, experts emphasized that defining this market and identifying its operators is a complex endeavor.
At the panel titled “Crackdown on Unregulated Gaming: Where States Draw the Line,” regulators and consultants discussed the need for adaptability in pursuing illegal operators in today's digital landscape. The challenge intensifies as companies quickly change their tactics and delivery methods to evade potential crackdowns.
“From an investigative standpoint, we have to not get caught up in all the different labels and naming,” stated Carl Herold, Director of Law Enforcement for the Florida Gaming Control Commission.
According to the American Gaming Association, illegal gaming activities have surged by 22% between 2022 and 2025, particularly in the iGaming sector. The organization estimates that unlicensed gaming operators take in approximately $673.6 billion in wagers from Americans annually.
The perpetual struggle between state and federal authority complicates enforcement efforts. Often, state gaming regulators resort to cease-and-desist letters to target operators within their jurisdictions. Over recent years, they have employed this method in cases involving daily fantasy sports, sweepstakes games, and prediction markets, even attempting criminal charges in some instances.
Susan Bala, co-founder and director of Advance Compliance Technology, noted that relying solely on this approach is insufficient in the current digital environment. “They’ll just open up another 10 sites, 20 sites under a different name,” Bala warned.
Panel moderator George Rover from Princeton Global Strategies, who has extensive experience with the New Jersey Division of Gaming Enforcement, discussed past efforts to engage federal authorities to enhance state enforcement initiatives. However, these attempts often met with pushback, as federal agencies prioritize other cases. “I’m not giving you two FBI agents for 18 months to do an offshore investigation. I can’t spare it,” Rover quoted one federal contact.
In light of this, Rover suggested that state regulators collaborate more closely to establish effective practices that can be implemented across various jurisdictions. “You’ve got to fight them aggressively in ways that have never been contemplated,” he advised.
Some offshore operators blatantly disregard regulatory boundaries, with marketing strategies that include advertising directly to U.S. audiences. For instance, the offshore sports betting company Bovada ran television ads during March Madness broadcasts for several consecutive years.
Ed Martin, president of the Sports Betting Regulators Association, encouraged public participation in reporting illegal gaming advertisements. “People should file complaints about unregulated gaming ads on radio and TV,” Martin said.
Court battles at the state level represent another front in the fight against illegal gaming, projected to remain active into 2026. A notable case involves Massachusetts, where 37 states have come together to support a lawsuit against Kalshi, currently unfolding in state court. Massachusetts Gaming Commissioner Nakisha Skinner expressed optimism regarding her state's legal approach. “We’ll let the process play out in the courts but we think that ultimately the Supreme Court will agree,” Skinner remarked.
Overall, Rover encapsulated the panel's sentiment regarding the urgency of the situation for state regulators: permission is promotion. “If you’re not aggressively (going after) it, you’re subtly allowing it. It’s a tough situation we’re all in but hopefully it changes in the future,” he concluded.
