Regulus: Feds likely to step in against grey gambling products in 2025

As the US will be introducing a new administration on Jan 20, bettors have started to guess what the new administration will do to the gambling business in 2025. According to a report, Regulus Partners, a business advisory agency, predicts the US federal government is likely to interfere and block the usage of quasi-gambling products.

Behind the Scene

Specifically, for the analysts, DFS 2.0, sweepstakes casinos and most recently sports CFDs represent grey betting products passing for quasi gambling. These products are now out of control in the online gambling market skyrocketing to such a point to signal that their possible evaluation will begin at the onset of the Trump tenure.

Although gaming is usually regulated in a state or tribal basis similar to Native American gaming, Regulus said the inability of the governing bodies to clearly define gambling is placing a noticeable strain on the regulatory model.

The agency believes that 2025 has started with loads of US legal workarounds for quasi-online gambling products, which makes a state-by-state solution very problematic.

Further Clarification

Regulus analysts went on to clarify that the vastly pro-gambling nature of the incoming administration actually increases the likelihood of action being taken. The US betting population can expect the government to decide which gambling products would be legal and which would not.

Bettors can also expect 2025 to be a defining year for gambling in the US if the feds begin the intervention as predicted. Analysts at Regulus wrote that the never-ending list of sweepstakes casino legal cases was because the government has yet to settle blurred lines in its gambling regulations. Things may be about to take a wild turn as Trump’s administration takes the wheel.

Regulus says Congress should intervene on sweeps.

Regulus argued that some products are always over the line as quasi-casino offerings but that sweepstakes have been carved out through a partial federal intervention via the Deceptive Mail Prevention and Enforcement Act.

Speaking further on the matter, the analysts added that rather than make gambling regulations more complex, the incoming administration should see it as a legislative active enforcement problem. This way the Senate can reach a consensus on how to define gambling and its associated products.

Commenting on the launch of DFS 2.0 and sports betting using CFDs, Regulus says these new gaming products may also pose similar definitional problems. The controversy that is tied to the CFDs launched by Crypto.com lies in the fact that usually, CFDs are for investment purposes, and investment is under the federal government.

The analysts further pointed out that CFDs are governed by different regulations, unlike betting; thus, there is cut-out regulation guiding the products. The reason US states will find it hard to stop the licensing of CFD operators even when they license sports products is because of seeming regulations surrounding CFDs.

According to Regulus, Trump’s administration and the Republican Congress are unlikely to allow sports betting to be termed investment under the cover of a financial instrument name. The analysts argue that if CFDs can offer sports, then US states may have lost their right to establish strong regulations on sports betting.

Sources:

1. “Regulus: feds likely to step in against grey gambling products in 2025” Next.io.
2. Deceptive Mail Prevention and Enforcement Act