Ending up in international waters does not mean there can be no local regulation. The U.S. Supreme Court held years ago that the ferry boats transporting passengers from Detroit to Bob-Lo Island in Canada were subject to Michigan state laws precluding racial discrimination.

The fact that no one has operated a wet casino out of NYC doesn't mean the Commission prevents them. I would be interested in how many applications have been filed, and why they have been rejected, before reaching this conclusion. Note that since the creation of the Integrity Commission, there also have been no confirmed Martian landings in Manhattan.