Regulatory and legal developments in gambling for 2026

Regulatory and Legal Developments in Gambling is quickly becoming the defining storyline for the next phase of online betting growth, not because demand is slowing, but because regulators are drawing clearer lines around advertising pressure, illegal market enforcement, and underage exposure. Three developments published on 17 February 2026 capture that shift in real time, France is warning operators ahead of the 2026 World Cup, Malaysia is drafting new legislation to tackle illegal gambling including online activity, and Massachusetts is escalating a compliance case after BetMGM reported promotional emails were delivered to recipients under 21.

Read together, these aren’t isolated headlines. They are signals that gambling regulation is moving from broad market authorization into a more surgical era focused on how gambling is marketed, who is reached, and how effectively illegal supply can be constrained when consumer demand moves online.

France and the 2026 World Cup ad squeeze

In France, the National Gaming Authority, the ANJ, has called on operators to moderate their advertising ahead of the 2026 FIFA World Cup. The regulator’s intervention followed a review of operators’ promotional strategies for 2026, where the ANJ observed a significant increase in budgets of over 25%, which it attributed mainly to spending around the upcoming tournament.

That single data point matters because it highlights how major sporting events still act as accelerants for acquisition, brand building, and retention, especially in sports betting. From a regulatory perspective, a rapid budget increase is not just a commercial decision, it is a potential risk multiplier for ad saturation.

The ANJ explicitly asked all operators in the French market not to exceed their announced budgets, citing concerns about advertising overexposure and the development of excessive gambling. It also linked those concerns to two vulnerability indicators it quoted, problem gambling prevalence in sports betting at 15.3%, and the fact that 18% of 18 to 24 year olds were gambling in 2024.

Water breaks and the unexpected growth of ad inventory

One of the most striking aspects of the ANJ warning is how it connects regulation to the mechanics of broadcast inventory. FIFA has announced mandatory water breaks during matches, and the ANJ noted this creates an additional two minutes of advertising time during each match.

More inventory sounds benign, but in a high-intensity tournament environment it can easily translate into more frequent prompts to bet. The ANJ’s position is that extra inventory can intensify advertising pressure on vulnerable players, especially when sports betting already shows elevated problem gambling prevalence.

During discussions with the ANJ, the ad sales trade body ADMTV, representing broadcasters and streaming services, said it will not sell these refreshment breaks to advertisers in the gambling sector. That commitment is a meaningful example of how self-regulatory decisions by media sellers can be used to de-risk new ad formats before they become normalized.

Where France may be heading next

The ANJ also reiterated its call for broadcasters to respect rules prohibiting advertising for illegal gambling and games of chance, particularly online casinos. And in a forward-looking note, it asked the legislator to consider its proposal to establish a whistle-to-whistle ban and a strengthened framework for sponsorship of major sporting events.

Even without new legislation, the direction is clear. France is setting expectations that operators should not treat the World Cup as a blank cheque moment, and it is framing ad restraint as a public health issue, not merely a branding dispute.

Malaysia moves toward stronger laws against illegal gambling

Malaysia is preparing legislation to combat illegal gambling, including online operations, as authorities seek to strengthen enforcement powers against the sector. Deputy Prime Minister Datuk Seri Fadillah Yusof said the bill could be presented to the Dewan Rakyat as early as the next parliamentary sitting, depending on readiness.

The stated driver is growing concern about the social impact of illegal gambling and the need for a more robust legal framework. Fadillah explicitly highlighted the impact on younger people, saying illegal gambling, if left unchecked, can affect social well-being, especially among the younger generation, and that the government is treating the matter seriously.

From an iGaming market lens, this is an enforcement story, but it is also a platform story. Once gambling demand shifts to smartphones, the ability to identify, block, and prosecute illegal operators becomes far more dependent on how legislation interacts with cybercrime tools and communications infrastructure.

Standalone act or amendments to older law

Officials have not yet decided whether the new framework will be a standalone act or amendments to existing laws, including the Common Gaming Houses Act 1953. That choice will shape how adaptable the rules are to online operations and how quickly enforcement can respond when illegal operators change domains, payment routes, or distribution channels.

The proposed bill remains under review, and authorities are examining whether to incorporate provisions under existing cybercrime legislation or create dedicated legislation specifically targeting gambling offences. That debate is familiar across many jurisdictions, update legacy gambling statutes, or build modern rulesets designed for digital distribution.

Blocking effectiveness becomes a core policy question

Malaysia’s enforcement push also intersects with the practical challenge of access blocking. In November, Sarawak police highlighted efforts to find more effective methods of blocking access to online gambling platforms. Police Commissioner Datuk Mohamad Zainal Abdullah reportedly called for closer collaboration with the Malaysian Communications and Multimedia Commission and Sarawak Information Systems to improve system-blocking measures against gambling sites accessible via mobile devices.

In other words, legislation is only half the battle. The other half is whether agencies can coordinate and operationalize the tools needed to make illegal access meaningfully harder at scale, particularly on mobile.

Massachusetts probes BetMGM over promotions sent to minors

In the United States, the Massachusetts Gaming Commission has opened a formal compliance case after BetMGM reported that promotional emails tied to Boston Red Sox games reached some recipients aged under 21. The issue was discussed during an MGC meeting held virtually on 12 February.

Senior Enforcement Counsel Zach Mercer said the matter involves BetMGM, a category 3 sports wagering licensee, and alleged non-compliance with multiple state sports wagering rules. According to Mercer, the promotions were transmitted to individuals based on their use of Major League Baseball’s Ballpark app at Red Sox games, which raises immediate questions about audience sourcing, consent pathways, and age verification when third-party or event-based data flows into sportsbook marketing.

The timeline and volume are significant. The emails related to eight Red Sox games staged between 10 April 2024 and 25 July 2025. Over that span, a total of 96,167 promotional emails were sent, Mercer said.

BetMGM told the commission it could confirm that 3,803 recipients were aged under 21 as of 4 September 2025. Mercer also said BetMGM identified 19 recipients on the voluntary self-exclusion list and 25 recipients in a cool-off status at the time the promotions were transmitted.

One of the most consequential details discussed publicly is the unknowns. BetMGM reported it could not confirm the date of birth for 37,632 recipients, a point commissioners treated as salient in assessing the scope of the breach. In compliance terms, uncertainty is risk, because regulators typically assess not only confirmed harm but also the size of the population that could have been impacted.

Why the commission is escalating the response

Commissioners said they wanted the matter handled through an adjudicatory hearing before the full commission. They described the episode as serious given the volume of emails, the presence of excluded and cool-off recipients, and the unresolved question of the ages of a large share of the distribution list.

Chair Jordan Maynard said the commission’s goal is zero under-21 access to sports wagering in Massachusetts. He also said the regulator would take action when issues like this arise, supporting an adjudicatory process with investigative resources available to the commission. The enforcement presentation described next-step options including referral for further investigation and recommendations, or pursuing an administrative penalty, and the public discussion made clear the commission would move forward with the adjudicatory hearing focused on the incident.

One theme across three jurisdictions, marketing and access are now the frontline

France is focused on advertising intensity around the World Cup, Malaysia is trying to modernize enforcement against illegal gambling including online operations, and Massachusetts is interrogating the compliance reality of targeted promotions that reached underage individuals and protected cohorts.

These are different regulatory problems, but they converge on the same strategic question, how do you expand or maintain a regulated gambling market while reducing harm and preventing leakage to illegal supply?

For operators and their partners, the practical implications can be summarized in three pressure points

• advertising governance is tightening, especially around major events where budgets spike and attention is concentrated,
• enforcement against illegal online gambling is increasingly tied to cyber, telecoms, and cross-agency collaboration rather than traditional venue-based policing,
• youth protection expectations are hardening, with regulators showing less tolerance for gaps in age verification, suppression lists, and the quality of customer data used in marketing.

What to watch next for the 2026 cycle

Each story is at an early stage of a broader arc, and 2026 is likely to intensify these dynamics rather than calm them.

In France, the World Cup will test whether voluntary restraint, budget discipline, and broadcaster policies can contain ad exposure when new inventory appears during matches. The ANJ’s mention of whistle-to-whistle restrictions and sponsorship frameworks suggests the conversation is not ending with a polite reminder to stay within budget.

In Malaysia, the key variable is the architecture of the proposed law, whether it becomes a dedicated modern act or a set of amendments to existing legislation, and how explicitly it empowers authorities to act against online operations. The parallel focus on blocking measures shows policymakers understand that online gambling enforcement is partly a technical capability challenge.

In Massachusetts, the BetMGM case is a reminder that marketing compliance is not only about intent, it is about systems. A single employee failing to follow internal policies was cited by Mercer as BetMGM’s explanation, but regulators will still evaluate controls, segmentation logic, and whether safeguards were robust enough to prevent underage recipients, self-excluded patrons, and cool-off customers from being contacted.

Across these developments, the direction of travel is consistent, regulators are shifting from market launch rules to market conduct rules, and advertising and audience integrity sit at the center.

Conclusion

Regulatory and Legal Developments in Gambling is no longer just a compliance sidebar for iGaming companies, it is a competitive factor that shapes how brands acquire customers, how platforms partner with sports and media, and how governments define the line between regulated entertainment and social risk. As the 2026 World Cup approaches, as Malaysia reshapes its response to illegal online gambling, and as Massachusetts examines the mechanics of sportsbook promotions, the industry is being pushed toward more disciplined advertising, stronger enforcement logic, and higher standards of customer protection.

For stakeholders across the ecosystem, operators, affiliates, leagues, broadcasters, and regulators, the message is simple. Growth is still possible, but the playbook is changing, and it is changing fastest where marketing meets vulnerability.