HomePublicationsNewsletter ArchiveVolume 27Issue 13New American Gaming Association White Paper Urges Action Against Unregulated Gaming

On April 12, 2021, the American Gaming Association issued a press release announces the publication of a new white paper that discusses the detriment and danger caused by unregulated gaming machines. The paper highlights the substantial benefits to consumers and communities that are jeopardized by unregulated gaming devices along with significant threats posed that mitigate many of the societal benefits produced by the regulated gaming industry.

Among several harms, the AGA notes unregulated gaming machines:

  • circumvent the stringent licensing requirements that make the regulated casino industry safe.
  • lack continual compliance and reporting · requirements that should accompany consumers at all times in gaming environments.
  • do not offer responsible gaming programs that protect consumers.
  • do not offer the economic benefits that flow from the regulated gaming industry due to their failure to generate tax revenues.
  • promote criminal activity such as money laundering, violent crime, and drug trafficking, often associated with illegal gaming devices.

To mitigate the detrimental effects of unregulated gaming, the AGA urges that the fight against illegal gaming machines “must remain a priority to protect consumer safety and promote the essential tax revenue and economic development provided by licensed gaming operations.”

Accordingly, the AGA recommends three steps to combat unregulated gaming: 1, policymakers “must prioritize robust enforcement of laws to root out illegal and unregulated gaming machines”; 2, states and communities must not simply authorize unregulated machines as a new revenue source, for allowing these machines to continue operating will reward bad behavior and erode investment made by regulated entities; and 3, other industries must “understand their responsibility to eliminate illegal gaming machines at their businesses” that put their customers at risk.

The AGA’s paper expresses the importance of a robust regulated gaming industry that promotes consumer safety and community well-being. “Only through cooperation with policymakers and law enforcement to protect against unregulated gaming machines,” the AGA believes, “will gaming continue to be an economic driver and entertainment innovator that protects consumers.”


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