The casino lobby would prefer that online gambling didn't exist. Therefore, since these online companies are not in the US and have no lobbyist money in play, they have no standing.

Voter preference, individual rights, domain name sanctity, jurisdiction, shortsightedness with regard to keeping control of TLD's, futility of the fight, all have no bearing when uncontested lobby money wants something, and doubly so when states think it will mean more tax dollars in their pockets.