President Trump’s anti-weaponisation “slush fund” might be scuppered, but the scandals just keep coming. From The New Yorker’s bold claims of regulatory capture at the Commodity Futures Trading Commission (CFTC) to an alleged mafia-style gambling ring in Indiana involving police officers, there is no shortage of controversy. Welcome to edition 57 of Letter From America.
Operation Porterhouse Parlay
Operation Porterhouse Parlay blew the lid off what prosecutors described as a modern-day mob gambling ring in northwest Indiana, allegedly generating millions through online and in-person betting from 2021 to 2026.
While the arrests and raids may be over–with 22 people charged, including alleged ringleaders James “Jimmy the Greek” Gerodemos, Dean Gialamas and Chris Gerodemos, with illegal gambling, conspiracy, extortion and money laundering–the movie-script-worthy drama is still unfolding.
In the latest twist, two federal officers and one local law enforcement officer have been implicated. While no charges have been brought and no officials named, court filings show Jimmy the Greek discussing the three officers allegedly tied to the scheme.
According to reports, two were said to provide protection, while a third allegedly ran a betting book while still working the beat.
Regulatory Capture
In a stinging critique, The New Yorker synthesised all the prediction market news into a single, detailed investigation.
The leading claim was that: “What’s happening at the C.F.T.C. looks like a classic case of what economists refer to as regulatory capture, where vested interests effectively seize control of a government agency, which then advances their interests.”
The article dives into the already well-publicised links to the Trump family, as previously highlighted in iGamingFuture, but also covers lesser-known details of structural change at the CFTC: From five commissioners to one, dissenting staff gone, policy reversals and investigations dropped without charges.
If you’ve not read it, we highly recommend you do.
RWNYC Rocky Start
The first four weeks of Resorts World’s New York City (RWNYC) Casino are in.
And in the first 28 days since relaunching as a full-service casino, the property’s 2,400+ slots delivered GGR of US$86.8 million (£64.6m). The 242 new table games added US$23.8 million (£17.7m), equating to US$3,500 (£2,604) per table per day.
While these figures look solid, Maybank analysts say table game revenue is running some 35 percent below forecasts – not quite the first mover advantage Resorts World was hoping to score.
RSI Joins PM Movement
Rush Street Interactive–operator of U.S. brand BetRivers–has applied to the CFTC to become a designated contract market.
The application is still pending, but if approved, RSI can join the likes of DraftKings, FanDuel and Fanatics in the prediction market movement.
Colorado Clampdown
Colorado Governor Jared Polis (D) has signed SB 26-131 into law, introducing some of the strictest consumer protections in the U.S. market to date.
The measures, which come into force on August 12, include a ban on credit card gambling, deposit limits capped at six per day and restrictions on advertising.
The rules come as Colorado’s gambling sector continues to boom, ranking 12th among U.S. states in 2025. In March alone, operators netted over US$51 million (£37.9m) in retail and online sports betting GGR, with online accounting for a huge 99 percent of revenue.
Regulatory Ripples
Lawmakers in Pennsylvania–the second-largest gambling market after Nevada–are moving to follow Colorado’s lead, proposing a package of bipartisan bills aimed at tightening player protections.
Framed through a public health lens, the proposals would restrict credit card gambling, introduce 24-hour deposit limits, curb advertising practices like push notifications and text messages and increase funding for responsible gaming programmes.
Pennsylvania was one of the earliest states to embrace legal gambling, with both online casinos and sportsbooks legalised in 2017 and live by 2019 – the market now appears to be entering a more mature regulatory phase.
Crypto Demand
New research from PaySafe has revealed that U.S. demand for crypto gambling is growing, with 83 percent of U.S. bettors wanting to use cryptocurrency to fund wagers at online sportsbooks.
The survey covered 2,550 active and prospective bettors across nine states.
Beyond the headline stat, the findings showed that 64 percent of bettors already own crypto and 85 percent of respondents want crypto withdrawals.
In terms of retention implications, 71 percent said they felt crypto deposits would improve their overall betting experience. Equally, 71 percent said a poor crypto transaction would cause them to look for a new platform.
Missed It?
The biggest casino deal in Vegas history went down last week as Tilman Fertitta acquired Caesars in one giant US$17.6 billion (£13.09bn) takeover.
Not to be left out of the acquisition momentum, People Magazine’s Barry Diller stoked headlines by offering US$18 billion (£13.38bn) for MGM Resorts.
