Okay, I'll correct it a little bit.
It sounds like online gambling companies can provide the venues and money processing anytime they wish as long as they don't use US phone systems and technologies within the US to do so and as long as they don't ever visit the US.
It isn't necessarily correct that they don't want competition with the profits of brick and mortar gambling companies in the US because according to your link, there is still no risk on the user/player end. They can place bets anytime and anywhere on the internet.
Here's the risk chart that was at your link:
Taking sports bets over U.S. phone lines
Taking bets on a server located in the U.S.
Taking bets on a foreign server, and then visiting the U.S.
Facilitating the transfer of funds to online casinos (payment processors), and then visiting the U.S.
Facilitating the transfer of funds to online casinos (payment processors), whether in the US. or not.
Taking casino / poker bets from U.S. customers on a website outside the U.S.
Helping people make bets on a website
Accepting advertising for Internet gambling, in the major media
Accepting advertising for Internet gambling, smaller media
Buying advertising in a U.S. publication as a casino, poker room, or affiliate
Placing bets yourself on the Internet
It looks to me that our government is doing the opposite of protecting US citizens with Puritan nanny-state regulations in this case. Nothing is stopping citizens from continuing on with their online gambling. It looks to me as if the government is trying to block non-US companies from profiting from the gambling of US citizens and using US infrastructure to do it while not paying anything to the US in the form of business taxes.
Is my understanding of the summary at your link correct?