Sweeping Fines, Strategic Exits, and the Mainstream Rise of AI: A July 2025 iGaming Report

Regulation: A Global and Local Look

In July, the focus of regulation moved from getting into new markets to enforcing existing rules. Regulators around the world showed they are serious, proving that even big companies can be fined for not following the rules. This change is creating a more stable but also more difficult environment for operators.

Regulation in the U.S.

U.S. regulations are still different from state to state, but July showed a common trend of stricter enforcement.

In Pennsylvania, the Gaming Control Board (PGCB) reported record revenue of nearly $6.4 billion for the last fiscal year, with June revenue increasing by 15.40% from the previous year to over $544.6 million. Despite this success, the PGCB issued two fines totaling $70,000 to show that financial growth does not excuse rule-breaking.

• Betfair Interactive (FanDuel) was fined $40,000 for failing to properly license several employees.
• Sugarhouse HSP Gaming was fined $30,000 after two underage individuals got onto the casino floor and gambled.
• The PGCB also added seven people to its Involuntary Exclusion Lists, including a person who left two children alone for over seven hours to gamble.

The message from the PGCB is clear: following the rules on employee licensing and underage gambling is not optional.

In Massachusetts, a big fine against a major operator set a clear precedent. On July 30, 2025, the Massachusetts Gaming Commission (MGC) fined DraftKings $450,000 for letting customers use credit cards for illegal wagers. The violation happened between March 2023 and February 2024 and led to 1,160 illegal bets worth more than $83,000. The fine was issued even though DraftKings had reported the issue on three separate occasions and tried to fix it. This shows that self-reporting is not enough; the responsibility for compliance is fully on the operator, and the penalties for failing are getting more serious. This fine highlights the kind of regulatory pressure that led to Super Group’s decision to leave the U.S. market in favor of long-term profitability.

In Maryland, the legislative effort to legalize iGaming failed. House Bill 17 (HB 17) and Senate Bill 340 (SB 340) both died in committee in January 2025. Instead, a new bill, HB 1418, took effect on July 1, 2025, clarifying that online gambling is illegal unless otherwise authorized and requiring the State Lottery and Gaming Control Commission (SLGCC) to report on illegal platforms. This shows that the path to iGaming legalization is not guaranteed and that there is growing concern about the unregulated market.

The Unregulated Sweepstakes Casino Market

While the iGaming industry faces strict rules, the unregulated sweepstakes casino market is growing fast. This market is projected to reach $11 billion in 2025, a big jump from $3.1 billion in 2022. It is expected to surpass the regulated iGaming market in both size and revenue. This growth is happening because sweepstakes casinos operate in a regulatory "grey area" without the high costs of licensing and taxes that regulated operators face. This creates a challenge for regulated platforms, which have to compete with sites that offer a similar experience with fewer restrictions. The Illinois Gaming Board’s reminder to avoid illegal "sweepstakes" devices shows that regulators are worried about this growing market.

Global Regulations Get Tougher

The U.S. isn’t alone. In 2025, iGaming regulations globally have become "leaner, swifter, and exceptionally detailed," moving from "light-touch licensing" to a focus on "flawless execution." This has raised the bar for new companies, favoring those with strong finances and advanced technology. For example, Brazil is blocking over 5,000 illegal websites, while Uzbekistan requires a high capital of $4.4 million and face-matching ID verification. New Zealand has set a cap of 15 operator licenses. This global pressure is pushing operators to use advanced technology for "jurisdiction-specific ID flows," "audit-ready logs," and "localized responsible gambling policies."

The Business of iGaming: Money and Strategy

July’s business news showed a shift in industry strategy. Companies are moving from aggressive expansion to a more careful approach that focuses on profitability and smart partnerships.

Super Group's Record Quarter and U.S. Exit

The biggest business story of the month was about Super Group, the parent company of Betway and Spin. The company reported record unaudited financial results for the second quarter of 2025, with revenue up 30% year-over-year to $579.4 million. This growth was from strong performance in its African and European markets. The company also reported a 78% increase in adjusted EBITDA to $157 million.

At the same time, Super Group announced it would leave the U.S. iGaming market. Despite having record growth in the U.S. for the quarter, the company cited a projected full-year U.S. loss of $30 million as the main reason for its withdrawal. This decision, which will include a $63.9 million non-cash goodwill impairment and other costs, shows a new way of thinking in the industry. The U.S. market, while a huge opportunity, is proving to be a high-cost environment. Super Group’s choice prioritizes profitability and long-term growth over a costly expansion in the U.S. This could set a new trend for other operators.

PureWager's New Alliances

Instead of big mergers, the new company PureWager Group entered the market with strategic partnerships. In July, it announced two key alliances.

• On July 9, PureWager partnered with BoscaSports to deploy sportsbook, iGaming, and retail kiosk solutions in U.S. tribal markets and internationally. This partnership will also involve co-developing "AI-driven betting tools" and "hybrid retail-digital ecosystems," focusing on technology and specific jurisdictions.
• On July 28, PureWager announced another partnership with SCCG Management, a global advisory firm, to launch a "vertically integrated gaming platform." This alliance gives PureWager the global reach, regulatory knowledge, and business experience it needs to compete from the start.

These partnerships show a calculated way to build a competitive presence without the financial risk of a large-scale merger.

The Future is Now: Technology and Content

Technology is no longer a small part of the iGaming industry; it is essential for both business and compliance.

AI and Machine Learning: Personalization and Security

AI and machine learning (ML) are major iGaming trends in 2025. AI is used to create personalized player experiences by suggesting games and offers based on a player's habits. It's also a key tool for following responsible gambling rules. Regulators like the UK Gambling Commission are focused on these practices. Platforms are now using AI and ML to find "unusual and problematic behaviour" and offer tools to limit gambling time and spending. This is a direct result of the regulatory pressure seen with the fines in Pennsylvania and Massachusetts, making AI-driven compliance a business necessity.

However, AI also has a downside. While operators use it for fraud detection, fraudsters are also using it to create convincing deepfakes and fake identities to get around security checks. The industry is in a constant battle of technology where the most advanced AI systems will have a significant advantage.

The Crypto Boom: A New Kind of Player

At the same time that regulations are getting tighter, crypto gambling is becoming more popular. Once a niche idea, crypto betting is now a standard option for players who want anonymity and fast payments. These platforms are becoming popular by offering no-KYC requirements and near-instant payouts, which is the opposite of the data collection and slower transactions of regulated play. Top crypto casinos like Jackbit, 7Bit Casino, and CoinCasino are attracting new players with a wide variety of games, high bonuses, and support for many cryptocurrencies. This creates a clear split in the market: one side has a highly regulated, high-cost environment for traditional operators, and the other has a booming crypto market for players who value anonymity and speed.

New Games and Content

The core of the iGaming business is still about offering fun games. July saw many new releases, especially in the live dealer category. New games from major developers included Marble Race by Ezugi, Dice City by Pragmatic, and Always 9 Baccarat by Evolution. This constant release of new content is important for operators like FanDuel Casino, which regularly add new games to its platform. The live dealer segment, which brings the feel of a real casino to the digital world, continues to be a key area for innovation.

Conclusion: What July's News Tells Us

July 2025 confirmed that the iGaming industry is in a new, more mature phase. The combination of record revenues, strict regulation, and strategic corporate decisions shows a clear picture of what's to come.

The time of fast, unregulated growth is over. The focus is now on market integrity. A state's ability to earn tax revenue is directly linked to its strict oversight. Fines in Pennsylvania and Massachusetts prove that compliance is a constant operational need with serious financial results for failure.

The U.S. market, while a big opportunity, is proving to be a high-cost environment. Super Group's exit signals a shift in corporate strategy from pursuing market share at all costs to focusing on profitable, sustainable growth.

Technologically, the industry is in a new arms race. AI is a critical tool for both business optimization and compliance. But as this technology gets better, so do the threats from fraudsters, creating a complex and changing landscape.

Finally, the market is splitting. Traditional operators are in a high-compliance, high-cost environment, while a booming crypto market offers an alternative for players who want anonymity and speed.

The winners in this new era will be the most disciplined, technologically advanced, and strategic players who can successfully navigate this complex landscape.