Rapid USA iGaming Growth Calls for more Federal Regulation

The US gambling sector is experiencing a surge comparable to an unregulated highway, according to Jordan Maynard, chair of the Massachusetts Gaming Commission. The rapid expansion of legal sports betting across the country has outpaced regulatory frameworks, prompting calls for more uniform federal oversight.

Since the Supreme Court’s 2018 ruling that overturned the federal ban on sports betting, the industry has grown swiftly, with 37 states legalizing some form of sports wagering. This boom has attracted billions in revenue but also raised concerns about public safety, addiction, and consumer protection.

• Rapid industry growth outpaces regulation: Sports betting is now legal in 37 states, but federal rules on advertising and problem gambler protections remain absent.

• Calls for nationwide exclusion lists: Current state-based systems are easily circumvented, prompting calls for a unified federal approach to protect vulnerable gamblers.

• Industry resistance to regulation: Operators push back against new restrictions, often citing concerns that tighter rules will drive bettors to illegal markets.

The Developments in Gaming Sector

Maynard, appointed chair in late 2023 after serving since August 2022, describes the current regulatory environment as lacking necessary “speed limits” and safeguards. He warns that without federal rules, states face limitations in controlling operators’ advertising and in managing problem gamblers through exclusion lists, which currently exist only at the state level and are easily bypassed by crossing state lines.

“The industry has operated with minimal federal oversight, creating challenges for regulators who must protect citizens while balancing the economic benefits,” Maynard said in an interview with the Guardian. He emphasized the need for clear national standards on advertising and the creation of a nationwide exclusion system to better address gambling addiction.

Despite regulators’ efforts, the gambling industry has strongly resisted increased federal regulation. Operators argue that state-level rules suffice and have pushed back against restrictions such as limiting bets on student athletes or in-game wagering. Maynard criticized this stance, noting that the industry often uses the existence of illegal, unregulated markets as a rationale against tighter controls.

“I don’t like the unregulated market being used as a boogeyman for every operator for every reason,” he said. Maynard advocates for reasonable regulatory friction, citing security measures like weapons detectors in Massachusetts casinos as an example of effective safeguards that initially met industry resistance but ultimately enhanced patron safety.

The regulatory challenge extends to underage gambling, a growing concern on college campuses and high schools nationwide. While Massachusetts prohibits wagers by anyone under 21, Maynard acknowledges that underage betting occurs and stresses the importance of collaboration with operators, athletes, and leagues to mitigate this issue.

Artificial intelligence is also transforming the industry, offering both risks and potential benefits. Maynard suggests that technology used by operators to target bettors could be harnessed by regulators to promote responsible gambling behaviors, provided regulators are engaged in overseeing these advances.

Illegal offshore sports betting remains a significant hurdle. Though the legal market has expanded, unregulated platforms continue to attract bettors. Maynard likened enforcement efforts to playing “Whac-a-Mole,” balancing the promotion of legal protections while combating illegal operators.

The industry is a highway without speed limits—regulators must put the seatbelt dingers in.

The Future

The tension between regulators and the gambling industry is palpable. Maynard’s efforts to increase transparency have met resistance, including industry reluctance to participate in public forums about gambling limits and restrictions. Yet, he remains focused on protecting consumers rather than advancing operator profits.

Regulators face an uphill battle for respect and influence amid an industry that is still maturing and a public often unaware of regulatory complexities. “There are days I don’t know if anyone cares about what we’re doing,” Maynard reflected.

The trajectory of US online gambling points to a critical juncture. As the market accelerates, calls grow louder for establishing “speed limits” and “seat belts” — regulatory measures that ensure growth does not come at the expense of public safety and integrity.