US Sports Betting Boom Exposes Regulatory Gaps and Rising Risks
Legal sports betting has spread rapidly across the US since 2018. As of April 2026, 38 states and Washington D.C. now permit it, following a landmark court ruling. Yet gaps in regulation have allowed new gambling formats to emerge, raising concerns about oversight and problem gambling risks. The shift began in May 2018 when the Supreme Court struck down federal restrictions in Murphy v. NCAA. This decision let states legalise sports betting, with nearly 40 adopting it by 2026. Seven states also approved real-money online casinos.
Some platforms exploit regulatory loopholes to offer gambling-like services. Kalshi operates under the CFTC's event contract market, framing political or weather bets as non-gambling products. Crypto.com uses offshore licences from Curaçao and crypto transactions to bypass US gambling laws entirely. Meanwhile, sweepstakes, social casinos, and prediction markets continue to grow in popularity.
At a recent webinar hosted by Integrity Compliance 360 (IC360), experts warned that state-level regulations are falling short. Matt Heap, managing director of ProhiBet, called for a national self-exclusion programme to block problem gamblers from accessing betting across state lines. Currently, they can evade restrictions by simply crossing borders. Dave Rebuck, former head of New Jersey's gaming enforcement, stressed that federal intervention is needed to support state efforts in tackling gambling disorders.
The event also introduced Alert360, a new IC360 tool for reporting harassment without fear of retaliation. Partnering with Radar, the platform uses geolocation tech to track incidents in real time. Panelists agreed that a unified federal approach would better address the challenges posed by online gambling's rapid expansion. While problem gambling rates remain low, wider access means more people are affected. Innovative betting formats and regulatory gaps highlight the need for stronger oversight. Experts continue to push for federal action to create a consistent, nationwide framework.
