´Unregulated, Illegal Gambling Machines Endanger Communities´ - Bill Miller

The gaming industry prides itself on the tremendous benefits we provide to our communities – and the opportunity to serve our customers across the country is not one we take for granted. We strive to be engaged citizens and good neighbors while bringing prosperity to local economies.

A gaming license is a privilege that we work every day to earn.

Unfortunately, thousands of unregulated and illegal gambling machines are popping up around the country. These machines undergo none of the same rigorous testing, licensing or regulatory processes as regulated machines, ultimately flouting laws, fueling crime and problem gambling and stealing tax revenue from states.

The American Gaming Association has highlighted this critical issue in our latest white paper, Skilled at Deception: How Unregulated Gaming Machines Endanger Consumers and Dilute Investments in Local Economies.

Often found at convenience stores, gas stations or bars, these machines often purport to be “skill-based,” misleading customers to believe they’ll have a fair chance to win, or simply operate in direct violation of the law. Because these machines have skirted state and federal laws and regulations, consumers lose their fair chance to win.

Skirting the law also means skirting taxes. While the legal gaming industry directly contributes more than $41 billion to state and local government annually, illegal gambling operators pay no taxes at all.

Disturbingly, these machines are often tied to criminal activity, including drug trafficking, money laundering and violent crime.

They also pose issues for problem gamblers. The legal gaming industry spends hundreds of millions of dollars on responsible gaming efforts, including implementing robust, frequent training for employees on how to spot problem gambling and intervene. The same cannot be said for illegal gambling machines, which lack responsible gaming measures to keep problem gambling at bay and are typically operated by store clerks or bartenders who are not trained to spot problem gamblers or how to help. Without sufficient oversight, the most vulnerable populations — including children — are at risk of addiction.

To protect consumers and communities and safeguard the legal gaming industry, it’s critical for all of us to step up to fight against the spread of these harmful machines.  

Law enforcement must prioritize robust enforcement to root out these machines, while states and communities must refrain from authorizing illegal gambling machines and instead prioritize regulations to minimize their existence.

Businesses, too, have a role to play and should actively remove illegal games on their properties to reduce consumer risk and demonstrate they’re trusted members of our communities.

The casino gaming industry takes our commitment to proper oversight, industry regulation and promotion of safe and responsible gaming seriously. But the spread of illegal gambling machines is an issue we cannot tackle alone. It will take an all-hands-on-deck approach to maintain responsible gaming and keep our communities safe. Only through the help of our allies in state capitols, law enforcement and related industries can we successfully protect consumers and support the economic success of our communities.