Regulated gaming markets are facing increasing challenges as new unregulated products, such as prediction markets and sweepstakes, attract players outside traditional consumer protections. This shift raises important questions about how well current regulatory systems serve players and bettors, especially in the US and other global markets.
The regulated gaming industry has long promoted its strict oversight as a key advantage, emphasizing extensive investigations, responsible gaming measures, and rules designed to protect consumers. Licensed operators bear significant costs to maintain these standards, which also serve as a defense against offshore and unregulated competitors.
However, as Joe Maloney, president and CEO of the Sports Betting Alliance, pointed out at the Global Gaming Expo (G2E) panel titled “Regulated or Irrelevant: What Global Markets Are Teaching North America About Staying Competitive,” “There’s only consumer protection if the consumer is choosing a regulated market.” This highlights a crucial limitation: once players move to unregulated or less regulated platforms, protections diminish or vanish.
North American regulated operators now compete not only among themselves but also against a growing range of products that do not carry the same regulatory burdens. These include offshore sportsbooks, sweepstakes platforms, fantasy sports, and prediction markets, each operating under different legal frameworks and consumer protection standards. For players, this means the safety net they expect from licensed operators may not apply elsewhere.
Alex Roberts, reflecting on the British market experience, noted that while the UK historically had low levels of gambling outside the legal market, this balance is shifting as unregulated alternatives become more sophisticated and restrictions tighten on licensed operators. He emphasized that “The average consumer outside of a conference like this has no idea what a license means,“ underscoring the confusion players face when choosing where to play.
In the US, the legalization of sports betting since 2018 has successfully moved a large portion of wagers into regulated sportsbooks, improving consumer protections. Yet, significant betting activity remains outside these regulated channels. Maloney acknowledged that this migration does not create demand but rather provides a legal option for existing demand.
Prediction markets, which allow betting on event outcomes beyond traditional sports, complicate the regulatory landscape further. Leveraging the panel discussion, Maloney admitted, “There’s an asterisk next to it,” referring to the extent of betting activity occurring outside regulated markets due to prediction markets. This raises concerns for players about the level of oversight and responsible gambling measures in place.
For players and bettors, these developments mean increased vigilance is necessary when choosing platforms. Licensed operators offer clearer consumer protections, including responsible gambling tools and dispute resolution mechanisms. Unregulated or lightly regulated products may lack these safeguards, increasing risks related to fairness, data security, and problem gambling.
As regulatory systems struggle to keep pace with market innovations, players should seek platforms that clearly display licensing information and provide transparent terms. Awareness of the differences between regulated and unregulated options is crucial to making informed decisions and minimizing harm.
For more on the challenges facing prediction markets and their impact on players, see CDC Gaming’s coverage on Predict 2026: Prediction markets a generational shift in wagering and the ongoing regulatory debate detailed in Predict 2026: CFTC, states battle over regulatory authority.
Players interested in sports betting developments can also explore our Sports Betting section and those focused on UK market changes can visit UK.
Source: CDC Gaming.
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