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Despite those warnings, the tribe opened its “Preview Casino” on July 24, offering Class II gaming out of modular structures.

Six days later, Interior determined that the land did not qualify for gaming under the Indian Gaming Regulatory Act (IGRA), forcing the tribe to shutter the operation and take the federal government back to court.

The arguments came as Scotts Valley asked US District Judge Trevor McFadden to issue a preliminary injunction blocking Interior’s July 30 decision. The outcome of the dispute directly threatens the tribe’s much larger ambition for the site: a proposed $700 million casino resort and hotel.

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It finds that online gaming shows more documented terrorist financing activity than gambling, although proliferation financing risks remain limited across both sectors.

Cash, e-wallets, mobile money and virtual assets emerge as the payment methods most vulnerable to abuse. This is particularly true where operators use them to structure deposits below reporting thresholds. 

Giles Thomson, FATF president, said unregulated sectors risk becoming “attractive gateways for fraudsters, professional money launderers and organised criminal networks”. He called on governments to strengthen oversight, crack down on illegal and offshore operators and deepen public-private cooperation. 

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“The Democrats are now anti-American – sad!” she said.

The rejection of the Clarity Act can be viewed as a victory for gaming stakeholders in their fight against prediction markets, which are closely intertwined with the crypto world. Crypto markets have long been the second-largest category of prediction market trading, behind sports, and many crypto exchanges also now offer predictions. These include Crypto.com, Coinbase, Gemini and many others.

On 16 June, a coalition of gaming lobby groups, state associations and labour unions sent a letter to the Senate urging lawmakers to include language in the bill banning sports and casino-related contracts. Among the signatories were the American Gaming Association, the Indian Gaming Association, the Association of Gaming Equipment Manufacturers and the UNITE HERE unions.