Casino City did not get into trouble, they filed a lawsuit on their own accord, to get an answer, once and for all. And they withdrew their suit on their own account.
The DOJ has a lot of power, law or no law.
They come to you and threaten to take away everything you have, and you cave, law or no law.
And that is what is going on, intimidation and the spreading of an untruth, and that is that there is a law against it. There is not. There are only local laws.
Your reaction is exactly what is desired, and the DOJ is thusly very successful with its campaign of intimidation.
The advertising businesses caved, not because there is a law, but because they didn’t think the revenues to be gained from taking these ads would equal the cost of going through years of legal procedures to prove what they knew all along – that they have done nothing illegal.
That is of course just my personal take on things and not a legal opinion and is not to be taken as legal advice in any way.