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Atucha praises the regulation and the regulators themselves for making entry into the market easy, as well as allowing them to be competitive against illegal operators. But the market hasn’t been without its challenges.

A 1% selective consumption tax (ISC) on the value of every online bet has been in force since 1 July 2025, after the original policy was scrapped from proposed regulations in July 2021.

Atucha warns that regulations are often perceived as operator-friendly at the start before governments begin looking to squeeze licensed sectors, likening the process to “boiling a frog”. He has observed similar scenarios in other LatAm markets, with tax increases occurring in Brazil, Colombia and Mexico in the last couple of years.

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Though Maryland, Virginia, and New York do not have iGaming, prediction markets offering trading on everything from sports to politics continue to make their platforms accessible. Controversial sweepstakes casinos additionally continue to operate in Virginia and Maryland.

The American Gaming Association (AGA) believes many federally regulated prediction markets have transformed into illegal gambling and sports betting outfits, siphoning revenue from the legal, taxed gaming industry. Prediction markets, the trade group argues, threaten jobs and tax revenue, as do other forms of illegal gambling like skill games, sweepstakes casinos, and offshore sportsbooks.

Illegal gambling operators are thriving at the expense of American consumers, siphoning billions in tax revenue from state governments, and undercutting the efforts of the legal market,” said AGA President and CEO Bill Miller. “It’s time for a national crackdown on the pervasive illegal market that is draining state coffers and putting people at risk.”

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The Luxor has not announced a return date, though as of Friday night, Monday’s 8 p.m. performance was still listed on sale.

This is a developing story. Check back for updates.

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