The U.S. gambling industry is expected to surpass $150 billion in value by 2030, yet in 2025, its most pressing regulator—the federal government—remains largely reactive. What was once a state-by-state experiment in legal sports betting has mutated into a jurisdictional minefield, with the Department of Justice (DOJ) and Securities and Exchange Commission (SEC) increasingly forced into the role of arbiter.
Nowhere is this more evident than in the DOJ’s escalating scrutiny of offshore crypto sportsbooks, which operate via Telegram bots, blockchain wallets, and decentralized platforms (DeFi). These sites often target U.S. players without licensure, tax compliance or player protection protocols. The DOJ’s current investigations—some tied to money laundering and unregistered securities—mark the first serious federal response to a problem years in the making.
Meanwhile, the SEC has issued subpoenas to at least four digital gaming platforms suspected of promoting crypto-based betting under misleading financial instruments. The gray space between “gambling” and “investing” has never been so profitable—or so fraught with risk.
In parallel, federal courts are once again center stage. The Florida case involving the Seminole Tribe and its exclusive mobile betting deal—upheld in part by the U.S. Supreme Court’s refusal to intervene—highlights the fragility of IGRA, the Indian Gaming Regulatory Act of 1988. Plaintiffs argue that using servers on tribal land to justify statewide online betting is a legal sleight of hand, undermining federal intent.
The Court’s silence in that case has only emboldened similar claims. In California, where proposed sports betting initiatives failed in 2024, commercial operators are now exploring federal litigation to challenge tribal exclusivity. And in Texas, where state leaders have blocked all legislative efforts, casino giants are looking to federal commerce clause interpretations for a possible pathway in 2026.
But the problem runs deeper: there is no comprehensive federal gambling law that reflects the digital, multi-jurisdictional reality of modern betting. The Wire Act (1961) is outdated, IGRA is stretched beyond its original scope, and PASPA’s 2018 repeal left a vacuum—one now filled by lawsuits, lobbying, and legal improvisation.
The stakes are enormous. As new technologies outpace regulation and political gridlock stalls state-level reform, the burden increasingly falls on federal agencies—whether they want it or not. With revenues climbing, illegal competition thriving, and cross-border disputes intensifying, the U.S. faces a decision: federalize or fragment.
Either the DOJ, SEC and Congress will shape the rules of the game, or they will continue to referee after the damage is done. And in gambling, as in law, silence is never neutral. Because in 2025, jackpot or judgment may well depend on Washington finally calling the hand.
German+
