United States Gambling Regulators Embracing Technology Post-PASPA
The repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018 triggered an unprecedented expansion in the U.S. sports betting market. However, it also revealed a major gap in the preparedness of regulators to manage this rapid growth. During a recent webinar titled “State of Gaming Licensing: What’s Changed Since PASPA and What’s Next?”, experts discussed the overwhelming challenges that regulatory bodies have faced in adapting to this new landscape.
David Rebuck, former Director of the New Jersey Division of Gaming Enforcement, shared his insight, noting how the sheer pace of expansion left many regulators struggling to keep up. He mentioned the “tsunami wave of expansion” in the sports wagering world that, although widely anticipated, left regulators unprepared for the demands it would place on them. “We were not prepared for that as a country, for that type of expansion,” said Rebuck, emphasizing the need for rapid regulatory adaptation in a shifting landscape.
As regulators scrambled to keep up, many states implemented temporary transactional waivers, allowing operators to enter the market before undergoing full licensing reviews. According to Rebuck, New Jersey’s experience with transactional approvals has been largely successful over the years, giving regulators and operators a more flexible way to keep pace with fast-moving changes.
Navigating Challenges and Industry Cooperation
Dan Hartman, the former Director of the Colorado Division of Gaming, highlighted the legal and regulatory hurdles that often stemmed from lawmakers’ decisions. He stressed the importance of building relationships with legislators to facilitate regulatory changes. Hartman noted that in the wake of PASPA’s repeal, the COVID-19 pandemic complicated the approval process, pushing regulators to embrace more electronic and remote methods of handling operations, such as using digital files for documentation sharing.
For regulators, embracing technology is not just about adapting to external challenges but also about addressing internal efficiency. Rebuck pointed out that older, traditional methods of regulation, such as physical visits to racetracks or casinos, no longer fit the new wave of operators entering the market. He emphasized the need for reforming red tape regulations to streamline processes and adopt technology-driven solutions that meet today’s demands.
U.S. Commercial Gambling Revenues Set a Record in 2024
Amid these evolving regulatory landscapes, the U.S. commercial gambling industry reached a milestone in 2024. According to the American Gaming Association (AGA), U.S. commercial gaming set a new record, generating $72 billion in revenue—a 7.5% increase from 2023. This growth was primarily driven by the rise of iGaming and mobile sports betting, with 28 out of 38 states reporting new annual revenue records.
The increase in gaming revenue, particularly from mobile sports betting, contributed significantly to state and local governments, adding $15.9 billion in tax revenue—an 8.5% increase from the previous year. As the gaming sector continues to grow, states like North Carolina and Vermont made notable strides by introducing mobile sports betting, leading to their first commercial gaming revenues.
The “State of the States Report” by AGA highlighted the continued upward trajectory of iGaming and mobile sports betting, which have rapidly gained popularity and continue to drive overall growth in the gaming market. Industry leaders have expressed optimism, with nearly half of casino executives expecting revenue growth to accelerate in the next six to twelve months.
Future Trends: Tech Integration and AI’s Role in Gaming Regulation
Looking ahead, the role of technology in gaming regulation is set to expand even further. Both Rebuck and Hartman discussed the growing influence of artificial intelligence (AI) in the gaming industry, particularly in streamlining the license approval process and managing vast amounts of data. AI tools could help regulators efficiently process licenses, monitor compliance, and predict patterns of fraudulent behavior, enhancing operational efficiency across the board.
As technology continues to evolve, regulators will need to strike a balance between innovation and player protection. With regulators focusing on compliance and fairness, the industry must ensure that the technology used does not compromise the integrity of gaming operations.
Source:
Webinar: Regulators overwhelmed by post-PASPA gambling expansion can embrace technology, cdcgaming.com, July 23, 2025.