Seminar: Overwhelmed Regulators Post-PASPA Gambling Growth Can Adopt Technology for Streamlined Management
The repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018 marked a significant turning point in the U.S., paving the way for a rapid expansion of legalized sports betting and iGaming markets. This transformation has led to a dynamic and evolving regulatory environment, with each state crafting its unique regulatory framework to cater to its needs.
Dan Hartman, former director of the Colorado Division of Gaming, and David Rebuck, former New Jersey Division of Gaming Enforcement director, recently discussed the impacts of this shift during a webinar titled "State of Gaming Licensing: What's Changed Since PASPA And What's Next?"
One of the key impacts is the state-level control and regulatory variation that has emerged. With states now able to legalize and regulate sports betting independently, a patchwork of laws and regulatory approaches has arisen across the country. By mid-2025, sports betting is legal in some form in 39 states plus D.C., each with its own rules on licensing, taxation, and responsible gambling requirements.
Another significant change is the economic and social regulation focus. States have implemented regulatory frameworks that balance market development with consumer protections. These include mandatory problem gambling safeguards, age verification, and transparency in operator partnerships to protect sports integrity.
The expansion post-PASPA has also driven technological adoption and market expansion. Regulators and operators have embraced technology such as mobile apps with geo-fencing, in-play betting, and emerging iGaming formats, including eSports betting. Regulation of iGaming now often requires implementing strong licensing, auditing, and fraud prevention measures aligned with state laws to ensure compliance and consumer safety.
However, the state-centric approach has also led to legal complexity with varying inclusion of iGaming and eSports betting within state laws. Some states explicitly include these in regulations, while others restrict or require additional approval processes. This requires operators to carefully navigate jurisdictional differences in preparation and compliance.
Rebuck emphasized the need to educate legislators on the need for access to different ways of doing things in the post-PASPA era. He also stressed the importance of regulators having a relationship with lawmakers to make changes in legislation. Hartman pointed out the need for regulators to engage with legislators when discussing AI legislation, as AI can be a tool to make their jobs easier.
The repeal of PASPA also led to an unprepared expansion in the sports wagering world. Hartman recalled that during the COVID pandemic, the traditional method for approving operators became obsolete due to remote work. Regulators had to adapt to electronic methods of dealing with employees and each other.
Rebuck also suggested that regulators should be open-minded and include the industry's opinions in making revisions. He mentioned that old methods of regulation no longer apply to many operators in the gaming industry and regulators need to embrace technology.
The webinar was hosted by Jonathan Michaels, founder and principal of Michaels Strategies, and presented by Speridian Technologies. Michaels, Rebuck, and Hartman's insights shed light on the evolving landscape of sports betting and iGaming in the U.S., underscoring the need for technological adoption, regulatory flexibility, and ongoing dialogue between regulators, lawmakers, and industry stakeholders.
[1] American Gaming Association [2] National Council on Problem Gambling [3] National Conference of State Legislatures [4] International Association of Gaming Advisors
- The expansion of legalized sports betting and iGaming markets post-PASPA has necessitated a focus on technological adoption, such as the use of mobile apps with geo-fencing, in-play betting, and emerging iGaming formats like eSports betting.
- In the post-PASPA era, regulators are encouraged to engage in ongoing dialogue with legislators and industry stakeholders, understanding the need to be open-minded and include the industry's opinions in their revisions, as technology continues to impact the gaming sector significantly.
