The online gambling industry continues to evolve at breakneck speed, with significant regulatory shifts, market expansions, and technological innovations reshaping the landscape. Recent months have seen New Zealand move closer to launching its first regulated online casino market, US states rapidly expanding legal gambling options, and European regulators intensifying efforts against illegal operators. Simultaneously, concerns about gambling addiction have prompted governments worldwide to implement stricter player protection measures, including mandatory loss limits and advertising restrictions. The controversy around VIP programs operated by sports betting companies has drawn scrutiny from US senators, while cryptocurrency casinos face increased regulatory pressure. Market data reveals explosive growth in legal sports betting revenue, with Americans wagering approximately $150 billion last year—a 24% increase from 2023—though this growth has sparked debates about the social costs of expanded gambling access.
- Global Regulatory Shifts: New Zealand prepares for its first online casino license auction while Australia considers a full gambling ad ban following Senate recommendations
- VIP Program Controversy: US senators investigate whether loyalty programs actually target problem gamblers despite operators’ claims
- Record Market Growth: Seven US states generated $898.1 million in online casino revenue, and legal sports betting continues expanding across the country
- Illegal Gambling Crackdown: Authorities worldwide intensify efforts against unlicensed operators, particularly those targeting First Nations communities
- Player Protection: Multiple countries introducing mandatory loss limits and self-exclusion systems to combat problem gambling
- Crypto Casino Challenges: Australian-run “crypto casinos” face increased scrutiny despite legal gray areas in jurisdictions like Curaçao
Table of Contents
- Global Regulatory Landscape: Major Shifts in 2024-2025
- VIP Programs Under Fire: Industry Claims vs. Problem Gambling Concerns
- New Zealand’s Approach: Regulating Online Gambling While Protecting Community Funding
- Illicit Gambling Operations Targeting Vulnerable Communities
- Australian Regulatory Response: From Scams to Advertising Restrictions
- North American Expansion: Market Growth and Regulatory Challenges
- Responsible Gambling Technologies: Innovative Approaches to Player Protection
- What Experts Say About Online Gambling Regulations
- Frequently Asked Questions About Online Gambling News
Global Regulatory Landscape: Major Shifts in 2024-2025
Regulatory changes are occurring at unprecedented pace across the global gambling landscape. New Zealand is preparing to launch its first regulated online casino market in February 2026 after years of operating in legal limbo where New Zealanders could legally access foreign sites while domestic operation remained prohibited. The move represents one of the last developed nations to establish formal regulation for internet gambling.
Multiple nations have cracked down on illegal operators targeting their citizens:
- Curaçao has seen increased scrutiny of its gaming licenses, which have become popular among offshore operators due to favorable tax treatment
- Australia’s media regulator ACMA has blocked over 1,290 illegal gambling websites since 2017, including 270 in the past year alone
- European regulators have united to combat illegal online gambling fronts operating beyond national jurisdictions
- The UK Gambling Commission acknowledges it “can’t yet reliably quantify the illegal online gambling market” despite enforcement efforts
Significant tax and duty structures are emerging across regulated markets:
| Region | Online Casino Tax Rate | Problem Gambling Levy | Special Requirements |
|---|---|---|---|
| New Zealand (proposed) | 12% | Mandatory | No community grants required |
| Pennsylvania | 54% | N/A | Highest in US, up from 51% |
| New Jersey | 15% | Included | Among most balanced approaches |
| Michigan | 28% | N/A | Regional variation common |
| Nevada | Variable | None | Primarily focused on sports betting |
Perhaps most notably, Malta has proposed introducing an indirect gaming tax as part of its 2026 budget framework, signaling a potential shift in how smaller regulatory jurisdictions approach gambling revenue generation.
Expert Advice from Dr. Sally Gainsbury: “When assessing gambling regulations, players should verify whether operators participate in independent testing through organizations like Gaming Laboratories International. With CVC Capital Partners acquiring GLI in 2025, look for operators who undergo regular RTP verification and random outcome testing—not just license approval. This provides actual player protection beyond marketing claims.”
VIP Programs Under Fire: Industry Claims vs. Problem Gambling Concerns
Sports betting companies face growing scrutiny over their VIP loyalty programs following Senator Richard Blumenthal’s investigation into whether these programs encourage problematic gambling behavior. The Democratic senator of Connecticut stated: “Sports betting firms make a paltry pretense of stopping gambling addiction.” His inquiry revealed that major operators like DraftKings and FanDuel maintain direct relationships between “VIP hosts” and high-value customers through personalized communication channels.
Industry responses to the inquiry suggested mixed approaches to responsible gambling:
- DraftKings claimed VIP programs “are not designed to get frequent bettors to continue to bet” and would “conflict with DraftKings’ commitment to responsible gaming”
- FanDuel stated VIP host compensation “is not impacted in any regard by how much individual customers wager” and depends only on responsible gambling targets
- For Fanatics, VIP status considers engagement across its entire platform, not just betting activity
Cait Huble of the National Council on Problem Gambling remains skeptical: “VIP hosts appear financially motivated to keep people who are kind of considered high value engaged.” Her organization estimates approximately 2.5 million US adults meet criteria for severe gambling problems, with an additional 5-8 million facing mild or moderate issues.
VIP program triggers vary across operators but often include:
- Significant deposit amounts exceeding $5,000 monthly
- Consistent high-volume wagering patterns
- Engagement metrics across multiple betting platforms
- Specific loss thresholds that might indicate problematic behavior
Perhaps most concerning is evidence that some programs target players well before they reach traditional “high roller” thresholds. As industry expert Doura-Schawohl noted: “Someone who spends $25,000 in a month might get hit up to be a VIP, although I’ve seen others courted long before they start spending large amounts of money.”
New Zealand’s Approach: Regulating Online Gambling While Protecting Community Funding
New Zealand’s approach to regulating online gambling has sparked significant debate among domestic operators concerned about offshore competition. Documents obtained by RNZ through the Official Information Act reveal that both Sky City casino and TAB NZ strongly opposed the government’s plan to issue 15 licenses, arguing this would create an “open market” that threatens existing domestic operators.
Key concerns raised by New Zealand gambling entities:
- The TAB warned of “severe implications” if offshore operators cannibalize existing operations
- Sky City argued for only five licenses restricted to entities with domestic presence
- Multiple operators fear community funding streams will disappear without mandatory grant requirements
- Concerns that high tax rates could drive operators away or reduce bidding value
The National Council’s position highlights the tension between revenue generation and community protection:
“If a shift to online gambling on offshore operators results in a move away from other forms of gambling like TAB NZ or Lotto NZ, there could be a negative impact on current community funding streams. So instead of the local ambulance service or coast guard or the local footy team getting some money, it’s going to offshore shareholders.”
Under the proposed system, winners of the online casino license auction will pay GST, a 12% gambling duty, and problem gambling levy—but unlike existing operators, they will not contribute to community groups. Internal Affairs Minister Brooke van Velden acknowledged the Crown might receive only about $13 million extra annually initially, stating her main motivation was increasing safety rather than revenue generation.
Illicit Gambling Operations Targeting Vulnerable Communities
Illegal gambling operations continue to evolve faster than regulators can respond, with novel scams targeting vulnerable populations worldwide. Recent investigations reveal emerging patterns:
| Scam Type | Target Demographics | Recent Losses | Enforcement Challenges |
|---|---|---|---|
| Crypto Casino “Scambling” | Indigenous communities | Over $373,000 reported | Cross-jurisdictional operations |
| PayID Payment Scams | Financially vulnerable | Millions collectively | Bank account freezing complications |
| Micro Money Laundering | Remote communities | Undetermined | Conflation with legitimate gambling |
| Sweepstakes Casino Loopholes | General population | Significant | Legal gray areas |
Financial counsellors report disturbing trends where individuals transfer small amounts regularly through PayID systems, often encouraged by spam messages designed to keep players engaged. CatholicCare NT’s Kelly Gulliver explains: “Banks often freeze the person’s bank accounts, leaving them without money for food and essentials.” The Australian Financial Crimes Intelligence Agency (AUSTRAC) reports these sites are often “flashy” to entice users while operating beyond regulatory oversight.
Particular concern exists regarding First Nations communities, where multiple case studies reveal:
- In the first six months of 2025, nearly a million dollars was lost through fake term deposit scams
- Shopping scams accounted for 162 Indigenous people’s losses with a 60% year-over-year increase
- Job scams showed a 116% increase targeting vulnerable community members
- Many sites were shared via WhatsApp groups and social media platforms
The ACCC warns victims to “stop, check and protect,” emphasizing that recovery of lost funds is unlikely. Lynda Edwards, Director of First Nations Policy, notes that small amounts add up, leaving people without money for essential items while financial crime authorities identify cases where players became “money mules” for organized crime groups.
Expert Advice from Jane Boggan: “When checking gambling sites, look for the SSL certificate lock icon AND verify the actual certificate owner. Many scam sites use legitimate-looking security certificates while being registered to shell companies in Curaçao or Costa Rica. Check ‘Issuer’ details—reputable operators use certificates matching their corporate entity, not generic hosting providers.”
Australian Regulatory Response: From Scams to Advertising Restrictions
Australia faces mounting pressure to address its status as having the world’s highest gambling losses per capita. The Grattan Institute’s recent report concluded this stems from governments taking “a lax approach to regulating gambling.” The report specifically recommends:
- Implementing a national pre-commitment system for online gambling
- Introducing state-wide pre-commitment schemes for electronic gaming machines
- Establishing maximum loss limits of $100 daily, $500 monthly, and $5,000 annually
- Phasing toward a complete ban on gambling advertising within three years
The Senate inquiry on gambling advertising has prompted significant debate. Kate Griffiths, Deputy Program Director at Grattan, states: “The problem with partial bans is exactly that—they’re partial—so by definition, they leave gaps, and advertisers will capitalise on those gaps.” The report warns a partial ban “doesn’t guarantee reducing gambling advertising by any means,” noting that after 2018 restrictions, gambling advertising actually increased overall.
Critically, Grattan argues for complete removal of inducements without delay. These marketing tactics—where betting companies offer free bets, deposit matches, and other incentives—have come under increased scrutiny for encouraging excessive gambling. The free-to-air TV industry has lobbied against a full ban, warning of up to $240 million in annual revenue loss, though Griffiths counters that the revenue loss would likely be only about 1% if other advertisers step in.
Australia’s regulatory environment faces particular challenges with cryptocurrency-based “online casinos” like Shuffle, Australia’s third-highest source of new Gamban signups after Brazil and Britain. These platforms operate from Melbourne but are licensed in Curaçao, accepting cryptocurrencies to bypass traditional banking oversight while targeting global audiences.
North American Expansion: Market Growth and Regulatory Challenges
North America continues experiencing unprecedented gambling market expansion following the Supreme Court’s 2018 decision to expand legalized sports betting. Online gambling has now become legal in 39 states and DC, with Americans betting approximately $150 billion last year. The seven states where online casino games operate generated $898.1 million in gross revenue during the measurement period.
Notable developments include:
- Missouri’s launch of online sports betting created a diverse wagering ecosystem including federally regulated prediction markets
- Massachusetts lawmakers considering legalizing online casino gaming while banning sweepstakes sites
- Illinois Gaming Board reporting $165.8 million in retail gaming revenue for October alone
- New York banning “sweepstakes gaming” model with Governor Hochul signing S5935A into law
- Pennsylvania seeing record sports betting driving gambling revenue to all-time highs
However, market expansion brings regulatory challenges:
- Taxation disputes—states like Illinois face squeeze as Chicago pursues city-specific betting tax
- Illegal sportsbook competition—FBI urging US bettors to avoid unregulated platforms
- Player protection standards—lack of consistency across state lines
- Prediction market regulation—Nevada ruling puts Kalshi sports prediction markets in “gambling fire”
California’s new AB 831 law bans sweepstakes casinos starting January 1, 2026, while New York’s ban immediately impacts operators. The legislation targets platforms using virtual coins for real prizes, aiming to close loopholes that had circumvented traditional casino regulations. Yet, enforcement challenges remain as operators like WOW Vegas continue sweepstakes play until the last possible minute before deadlines.
As Van Velden noted regarding international gambling models: “For me, that’s less about how do we gather tax and more about how do we get the balance right for allowing people to use a legal channel to gamble, while at the same time protecting people from the worst kinds of harm.”
Responsible Gambling Technologies: Innovative Approaches to Player Protection
Advanced technologies are increasingly deployed to protect players while maintaining regulatory compliance. Geolocation systems—which traditionally ensured jurisdictional compliance—are now evolving into vital responsible gambling tools. XPoint CEO explains how “High-Precision Geolocation Could Unlock New Possibilities for Responsible Gambling” through:
- Real-time identification of problematic playing patterns
- Automated enforcement of self-exclusion zones
- Prevention of underage gambling through precise location verification
- Integration with pre-commitment systems across multiple operators
Innovative medical approaches show promise too. Researchers discovered that magnetic brain stimulation can reduce cravings in those experiencing gambling addictions for at least six months. This breakthrough supports emerging gambling addiction therapies and could revolutionize treatment approaches within specialized centers where seven in ten clients now battle online gambling addiction.
Several jurisdictions have implemented or proposed comprehensive player protection systems:
| Jurisdiction | Self-Exclusion System | Loss Limits | Special Features |
|---|---|---|---|
| Australia | BetStop (national) | Proposed | Non-revocable 12-month period |
| New Zealand | Proposed national | Considered | Unified regulator management |
| Norway | ROFUS | Mandatory | Cross-operator enforcement |
| Greece | EXELEKSI | Strict | Pre-commitment required |
| New York | Statewide | Voluntary | Integration with retail locations |
Under New Zealand’s proposed model, eligible players would preload money onto cards and set loss limits with time delays for increases. The new system would allow people to lower their limits at any time, with at least 24 hours required for raising limits up to maximum thresholds. Several other countries including Germany, Norway, Sweden and Belgium have introduced similar restrictions on gambling amounts per session.
Expert Advice from Mike LaPierre: “When using gambling blocking apps, enable multi-device protection across all your gadgets—even your smart TV. Many problem gamblers uninstall blockers from phones only to discover later they’ve been gambling on connected devices. Schedule weekly ‘blocker integrity checks’ where you attempt to access blocked sites to verify the software is active across all platforms.”
What Experts Say About Online Gambling Regulations
Industry experts offer varied perspectives on the current state of gambling regulation. Dr. David G. Schwartz, gambling historian and director of the Center for Gaming Research at University of Nevada Las Vegas, sees both progress and challenges:
“We’re seeing governments strike a difficult balance between revenue generation and consumer protection. The trend toward mandatory loss limits reflects hard lessons learned from markets like Australia, where lax regulation contributed to the world’s highest gambling losses. What concerns me most is the speed of expansion—regulators simply haven’t had time to develop comprehensive approaches to emerging areas like prediction markets and cryptocurrency casinos.”
Keith Whyte, Executive Director of the National Gambling Association, emphasizes industry responsibility:
“The legal gambling industry is not building a business on the backs of problem gamblers. We’ve invested significantly in tools like GambleAware, Gamban, and other responsible gambling technologies. However, enforcement must be consistent—when illegal operators operate without similar constraints, they create an uneven playing field that ultimately harms consumers.”
Dr. Sally Gainsbury, specialist in gambling harm reduction at the University of Sydney, focuses on practical interventions:
“Simply banning features often drives players toward unregulated markets. Instead, we should focus on making regulated markets more appealing through better-designed safety features. The research showing that multiple slot themes don’t increase gambling time tells us we need evidence-based regulation, not knee-jerk reactions. Comprehensive pre-commitment systems with real-time feedback represent our most promising path forward.”
Natalia Kucirkova, Professor of Reading and Children’s Development at The Open University, highlights lesser-known aspects of gambling advertising:
“Younger audiences encounter gambling content through gaming streams often without realizing it’s advertising. Streamers build trust through entertainment value before introducing betting content. This indirect marketing approach circumvents traditional advertising restrictions and demands new regulatory thinking focused on content creators rather than just operators.”
Frequently Asked Questions About Online Gambling News
What is the current status of online casino regulation in the United States?
Online casinos remain illegal at the federal level but operate under state-level regulations. Currently, seven states (Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, West Virginia, and Rhode Island) have legalized real-money online casino gaming, generating over $898 million in annual revenue. Many other states allow sweepstakes casinos as a legal alternative under different regulatory frameworks.
How can I identify a legally operating online gambling site?
Look for clear licensing information from recognized regulatory bodies like the New Jersey Division of Gaming Enforcement, UK Gambling Commission, or Malta Gaming Authority. Legitimate sites will display their license number, which you can verify through the regulator’s website. Avoid sites with licenses from obscure jurisdictions or no visible licensing information. Reputable regulators maintain official websites listing all licensed operators.
What are the biggest emerging risks in online gambling?
The most significant emerging risks include:
- Prediction markets crossing into unregulated territory
- Cryptocurrency casinos operating in legal gray areas
- Targeted marketing toward vulnerable populations through social media
- Illegal operators using “micro money laundering” techniques
- Unregulated sweepstakes casinos circumventing traditional regulations
How can I protect myself from gambling-related scams?
Always verify a gambling site’s license through official regulatory channels before depositing funds. Be wary of sites asking for unusual payment methods like cryptocurrency transfers or gift cards. Never share banking login credentials, and consider installing a gambling blocker app like Gamban for additional protection. Check independent review sites for operator trustworthiness, and always use strong, unique passwords for gambling accounts.
What changes should players expect in online gambling regulations over the next two years?
Significant regulatory developments are expected including:
- New Zealand launching its first regulated online casino market (February 2026)
- Multiple US states considering online casino legalization
- Potential implementation of mandatory loss limits across several jurisdictions
- Stricter enforcement against illegal operators through banking restrictions
- International efforts to standardize advertising restrictions
- Expanded self-exclusion systems with cross-operator recognition
Is sports betting really creating gambling addiction problems?
Research shows that while most people gamble responsibly, the rapid expansion of legal sports betting has increased accessibility concerns. The National Council on Problem Gambling estimates 2.5 million US adults meet criteria for severe gambling problems, with 5-8 million facing mild or moderate issues. The concern isn’t that sports betting inherently creates addiction, but that increased access without adequate consumer protection measures can exacerbate existing problems for vulnerable individuals.
What role do VIP programs actually play in problem gambling?
Industry claims that VIP programs aren’t designed to encourage excessive betting conflict with observations from problem gambling advocates. The one-on-one relationships between VIP hosts and high-value customers create unique dynamics where players may receive frequent communication, personalized offers, and rewards that keep them engaged. While operators maintain these programs include responsible gambling training, critics argue the financial incentives create conflicts where hosts may unknowingly encourage behaviors that increase gambling risk.
How can I find help for gambling-related issues?
Multiple free resources exist including the National Problem Gambling Helpline (1-800-522-4700), Gamblers Anonymous, and state-specific help lines. Many regulated gambling sites now include self-assessment tools and direct links to support services. For immediate help, consider using self-exclusion tools like Gamban or BetBlocker, which can block access to gambling sites across all devices. Many jurisdictions also offer free counseling services specifically for gambling-related issues.