The American Gaming Association on Monday released a white paper on unregulated, illegal gambling machines it says are proliferating across the US.
The white paper, titled, “Skilled at Deception: How Unregulated Gaming Machines Endanger Consumers and Dilute Investments in Local Economies,” asserts these devices endanger consumers, funnel tax revenue away from state economies and have other negative impacts.
In the white paper, the trade organization said 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.
In addition, illegal machines are not monitored to ensure fair play for customers.
“Unregulated machine operators lack training in responsible gaming, potentially luring children and those with problem gambling behaviors to use these machines,” the paper’s authors wrote.
According to the AGA, recent raids of illegal gaming machines have been tied to drug trafficking, gang activity and violence, and have been linked to several major organized crime families.
To combat the spread of illegal machines, the report recommends law enforcement and policymakers prioritize robust enforcement of laws to identify and remove these devices, states and cities should cooperate to locate unregulated machines, and businesses need to actively remove them from their properties.
The AGA said the regulated gaming industry and law enforcement communities share concerns about the threat illegal gambling machines pose to communities.
“History has taught us that unregulated gambling gives rise to an array of legal and social concerns and ultimately erodes public confidence in the safety and integrity of the whole gaming industry,” Arizona Attorney General and former director of the Arizona Department of Gaming Mark Brnovich (pictured) said in a statement.
AGA VP of government relations and gaming policy counsel Jessica Feil added: “Legal gaming provides immense benefits to the communities it serves – and operating with a gaming license is a privilege that our industry takes seriously. Unfortunately, there has been a rapid increase of unregulated gaming machines that exist in the shadows, taking advantage of loopholes and flouting the law, with little to no oversight. These machines ultimately endanger consumers and communities, fueling problem gambling and crime while drawing important tax revenue away from states.”
