The American Gaming Association (AGA) has released a whitepaper highlighting the dangers of illegal and unregulated gaming machines that have been found in various jurisdictions in the United States, harming communities and consumers in the country.
The AGA has explained through a press release that these illegal gaming machines are not subjected to meaningful testing, licensing or regulatory standards and are often tied to criminal activity, including money laundering, drug trafficking and violent crime, which puts in endangers consumers and diverts tax revenues from state economies.
The document entitled "Skilled at Deception: How Unregulated Gaming Machines Endanger Consumers and Dilute Investments in Local Economies" highlights the following aspects:
- Illegal gambling machines do not undergo the same stringent regulatory requirements the legal gaming industry meets, including a licensing process, game testing and reporting and responsible gaming - nor are they monitored to ensure fair play for customers.
- Operators of unregulated machines also lack training in responsible gaming, which could attract vulnerable groups.
- Recent raids of illegal gaming machines have been tied to drug trafficking, gang activity, violence and have also been linked to several major organized crime families.
To combat the spread of illegal machines, the report recommends:
- Law enforcement and policymakers need to prioritize robust enforcement of laws to root out illegal and unregulated gaming machines.
- States and communities must not authorize these machines and continue to erode regulations and permit unnecessary consumer risk.
- Businesses should actively remove illegal and unregulated games on their properties.
- The regulated gaming industry and law enforcement communities share concerns about the threat illegal gambling machines pose to communities.
Considering the above, Mark Brnovich, Arizona Attorney General, and former director of the Arizona Department of Gaming, explains that unregulated gaming generates “legal and social concerns and ultimately erodes public confidence in the safety and integrity of the whole gaming industry”.
On the other hand, Jessica Feil, Vice President of Government Relations and Gaming Policy Advisor at AGA, highlights the benefits of legal gambling in the face of the increase in unregulated gaming machines that “ultimately endanger consumers and communities, fuelling problem gambling and crime while drawing important tax revenue away from states".
It should be noted that according to AGA data, the legal and regulated industry in 44 states generates more than $ 261 billion in economic impact and $ 41 billion in direct tax revenue, supporting more than 1.8 million jobs across the country.
Skilled at Deception: How Unregulated Gaming Machines Endanger Consumers and Dilute Investments in Local Economies (PDF)
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