US gambling industry faces fresh regulatory pressure

09 November 2026

U.S. gambling regulators are tightening scrutiny on the industry across various state and federal fronts, with a laser focus on DraftKings, prediction markets, and responsible gambling. South Carolina has swiftly launched a statewide gambling commission, heralding a critical overhaul of the state's gambling landscape. This commission, led by former gubernatorial candidate John Warren, marks a significant stride in reshaping the state's regulatory approach to gaming.

New York leads the consumer-protection push

In New York, the Gaming Commission has proposed two rules aimed at curbing gambling addiction. These include a ban on using artificial intelligence to customize bonuses or wagers, and requirements for sportsbooks to identify at-risk bettors based on specific thresholds. The commission unanimously advanced the rules, opening a 60-day comment period before final adoption. This move comes as a response to the mounting media scrutiny that exposed weaknesses in responsible gaming safeguards, such as a ProPublica investigation into DraftKings' practices.

The heightened regulations could reshape the enthusiasm of platforms, whether they be traditional favorites or new entrants offering popular games featured in guides, as they often encounter rigorous consumer-protection legislation.

The potential impact of this regulation, inspired in part by scrutiny around DraftKings, was summarized by Mary Posoch, Senior Vice President of Payment and Financial Services at FanDuel Europe: "Compliance doesn't grow organically - it needs to be considered continuously and approached with teams from multiple perspectives."

DraftKings has found itself in the regulatory spotlight in multiple states. In Louisiana, the Gaming Control Board tabled the company's five-year license renewal, granting only a temporary four-month permit while investigators examine concerns raised by news reports and regulatory filing issues. Louisiana officials said the issues raised were serious. Meanwhile, in Ohio, regulators have proposed new sports gaming advertising rules that would restrict direct marketing to bettors who engage with problem gambling tools within 48 hours of enabling or changing these tools.

At the federal level, Congress has taken an interest in sportsbooks and prediction market operators. In October, members from both the U.S. Senate and the U.S. House sent letters to American sports media companies, requesting information about the operations of prediction markets. The lawmakers sought details about logins, revenue, and VIP programs—which often feature personalized bonuses and perks for high-volume users.

For a related angle on the same question, see Finest Online Gambling guide.

Federal and political pressure on prediction markets

The political climate after the 2022 midterm elections has created both opportunities for gambling expansion and potential legal and regulatory hurdles. Industry executives believe the shifting landscape may increase scrutiny on prediction markets in particular. Lawmakers are already requesting detailed information about VIP programs, which could raise concerns about targeted marketing and user behavior.

Earlier this year, Congress enacted its first-ever restrictions on sports-betting promotions, as platforms like BetMGM were expanding their marketing efforts.

Industry implications

As regulatory pressure mounts, gambling companies will need to stay vigilant to navigate the shifting legal and political landscape. The industry is likely to face tighter restrictions on advertising, stricter responsible gaming requirements, and increased oversight of high-volume users. For companies operating across multiple states, the compliance burden will only grow as more jurisdictions take action.

In a statement, DraftKings President Jason Robins expressed confidence in the company's adherence to responsible gaming principles, but acknowledged the complexity of the environment. "Our industry is becoming more competitive, more convergent, and more global," he said. "That, combined with a maturing regulatory landscape in both the U.S. and globally, means there are increasingly nuanced regulatory environments."

The coming months and years will be a critical period for the U.S. gambling industry as it grapples with evolving regulations at both state and federal levels. Companies will need to stay proactive in monitoring developments, enhancing compliance programs, and promoting responsible gambling to navigate the increasingly complex landscape. Failure to do so could result in hefty fines, reputational damage, or even license revocations, as some operators have already experienced.