It hasn't really stopped, from what I can see. Some sites got shut down, but it was a token few and certainly not something the video game industry seems keen on shutting down with any seriousness, and why would they? The loophole here is that that you are gambling loot for loot, so you are only paying for loot with real dollars, you aren't (usually) straight gambling money on odds, though this does occur, its far far less prominent than the culture around loot and gambling, as noted, and this has lead to misaligned incentives and the government has not shown any real interest in taking systematic action, from what I can tell.

Still going strong, except belgium I think?