Regulators Intensify Fight Against Illegal Online Gambling

US gambling regulators are intensifying efforts to combat illegal online gambling by adopting technology-driven enforcement strategies aimed at better protecting players and bettors.

As online gambling expands rapidly, regulators face growing difficulties in identifying and shutting down illegal operators. Unlike traditional physical casinos, unlicensed online platforms lack fixed locations, use complex and often opaque payment systems, and frequently operate across multiple jurisdictions. These factors render conventional enforcement methods largely ineffective.

Carl Herold, former Director of Law Enforcement at the Florida Gaming Control Commission, described the necessary shift in enforcement tactics. “We’ve had to change our enforcement model,” Herold said during the SBC Summit Americas panel on regulatory priorities. “It requires that we be much more diverse and technology oriented.” This approach aims to improve detection of illegal operators and safeguard consumers from unregulated sites that may not honor payouts or adhere to fair gaming standards.

Many players find it difficult to distinguish between legal and illegal gambling sites. Nakisha Skinner of the Massachusetts Gaming Commission emphasized the importance of consumer education in this area. The commission has introduced a seal of approval for regulated platforms, signaling to players that their concerns will be reviewed and addressed. Skinner noted, “It may not be resolved to their satisfaction, but we will put eyes on it if a concern gets brought to our attention.” This measure provides some assurance of protection when engaging with licensed operators.

Illegal operators often advertise large progressive jackpots but fail to award them. Kevin Mullally, CEO of the International Association of Gaming Regulators (IAGR), shared examples highlighting this risk. “There was one jurisdiction where they kept advertising the winner and under further investigation, we could never find the woman,” Mullally said. “We believe that she was in Portugal and deceased five years before the jackpot was won.” Such deceptive practices underscore the dangers of gambling on unlicensed sites.

Brian Krolicki, Vice President of the Nevada Gaming Commission, pointed out the global challenges regulators face. “The world’s different. The geographic aspect of regulation is no longer purely applicable,” Krolicki explained. He stressed that no single jurisdiction can effectively police illegal operators alone due to the borderless nature of the internet and the diversity of regulatory standards worldwide.

To tackle these issues, the IAGR plans to sponsor an international illegal-gambling-awareness week later this year. This initiative will educate consumers about the risks posed by unlicensed operators and promote tools that verify whether a gambling site is legal in a player’s jurisdiction. Technology is being developed to allow users to input a URL and receive instant information on the site’s licensing status.

For players and bettors, these developments highlight the need for increased vigilance when selecting online gambling platforms. Checking for regulatory seals and consulting official resources can help avoid illegal sites that may not honor winnings or provide adequate consumer protections.

Regulators’ enhanced focus on technology and international cooperation aims to reduce illegal gambling risks, improve player safety, and promote fairer betting environments. For more on regulatory efforts and player protections, visit our USA section and explore related updates in Betting and Poker.

Read the full report at CDC Gaming. Additional insights on regulatory challenges can be found in related coverage such as SBC Americas: Prediction markets are omnipresent, but not all agree they’re valid and Gamblers lose appeals over $12,500 winnings on sports parlay and blackjack play.

Priya Patel