There's a defensible counterargument to be fair to the states. The sweeps model genuinely was operating outside consumer protection frameworks while marketing aggressively, often to people who didn't understand they were effectively gambling. From a regulator's perspective, shutting down an unregulated dual-currency casino that dressed itself as a sweepstakes promotion is reasonable consumer protection, even if the second-order effect is offshore migration.
The honest position is that both things are true. The sweeps model deserved scrutiny AND the crackdown pushes some players somewhere worse. Regulatory decisions rarely have clean outcomes. This one certainly doesn't.