I think the problem is that the regulatory apparatuses around gambling and sportsbooks are still based around brick and mortar gambling establishments

This certainly isn't true in the USA. Regulatory regimes have indeed adapted, but specifically to allow it, not to protect citizens from it. There's been a slow and steady increase in legal gambling for decades. Online sports betting and "prediction markets" have been around for decades; as long as the internet has been mainstream. There have been attempts to regulate it, but the reality is that laws are being made to empower it, not to safeguard anyone citizens.

I commend the article's subject for having principles and sticking to them. It's not an easy thing to do even when you have the financial luxury to do it.