State lawmakers and enforcement officials meeting in Puerto Rico argued that coordinated action across jurisdictions can reduce the reach of illegal and gray-market online gambling. At the National Council of Legislators from Gaming States Winter Meeting, panelists said states still have tools to protect tax revenue and address consumer risks tied to platforms operating without licenses.
Participants highlighted enforcement that targets not only operators but the systems that enable unlicensed gambling. Cooperation among states and with federal authorities can extend reach when platforms operate across borders or offshore.
Targeting vendors and payment channels
Speakers emphasized that money flow provides regulators with leverage. Enforcement can be applied to technology providers and payment services that support domestic sweepstakes casinos, which often present themselves as free-to-play promotions while offering redeemable coins.
An August study from the American Gaming Association estimated that unregulated iGaming companies generated $18.6 billion last year, a 38% increase from 2022. Panelists said this underscores the need for updated enforcement approaches.
Jay Atkins, FanDuel’s director of government affairs and former Missouri first assistant attorney general, said many gambling laws were written for in-person games rather than digital platforms that operate across jurisdictions.
“The law has not caught up with the technology and the modus operandi of the modern illicit gaming facilities,” Atkins said.
He urged lawmakers to update statutes and allow attorneys general to pursue concurrent original jurisdiction, enabling state and local courts to act simultaneously.
Ohio First Assistant Attorney General Jonathan Blantondescribed the challenge of shutting down operators who quickly reappear under new entities.
Following money trails and tightening oversight
Blanton said stronger regulation of payments and access points can weaken illegal platforms. Authorities need tools to seize funds and close market access, particularly when operators are abroad.
“If they’re in the Philippines … great, here’s a letter from Ohio saying ‘knock it off.’ Cool. We don’t really get much out of that,” he said, stressing that control over commerce mechanisms would allow more effective action.
Arin Ray, director of ZeroHash, said his platform blocks transactions to sweepstakes casinos in states where such activity is illegal, illustrating private-sector compliance as part of the broader effort.
Federal coordination and AG opinions
Former U.S. Attorney Greg Brower urged states to rely on federal resources when activity crosses state lines or involves foreign operators.
“When the federal Department of Justice is working the way it should be working, it can be a powerful ally in this effort, coordinating on a nationwide basis, enforcement activities,”Brower said.
Gambling attorney Daniel Wallach highlighted attorney general opinions as a “severely underutilized” tool. He cited Louisiana, where an opinion issued after a veto of a sweepstakes ban prompted operators to exit the state.
“Within a matter of weeks, we went from a veto to a formal opinion letter from the AG’s office, and subsequent to that, every sweepstakes casino operator has left Louisiana,” Wallach said.
He added that lawmakers can expand prohibitions to include vendors such as geolocation providers, banks, and processors.
Source:
“NCLGS panel says coalition of state enforcement would help shut down unregulated markets”, linkedin.com “Daniel Wallach”. December 13, 2025
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