Unlicensed gaming machines are a big threat
The American Gaming Association (AGA) has released a report analyzing the threat of illegal and unregulated gaming machines that continue to proliferate in the United States despite the best efforts of regulators. Casino gambling is now a legal and regulated industry in 44 states, generating more than $ 261 billion in economic impact and $ 41 billion in direct tax revenue, supporting more than 1.8 million jobs nationwide, according to AGA figures. Illegal gaming machines have been found in dozens of states and they continue to circumvent laws and regulations. Recent raids have spread across the country, seizing machines and cash in California, New Jersey, Arkansas, Pennsylvania, North Carolina, Hawaii and Tennessee, among others.
In the report called "Skilled at Enception: How Unregulated Gaming Machines Put Consumers and Dilute Investments in Local Economies" ,AGA explains that these illegal gaming machines are not subject to significant testing, licensing or regulatory standards and are often linked to criminal activities, including money laundering, drug trafficking and violent crime. Without proper intervention from a regulated authority, these machines are often linked to fraudulent results that disproportionately favor the house.
It is alarming to allow such machines to work as it is dangerous not only for adults but also for children as they do not adhere to any responsible gambling practice. In fact, they can target vulnerable people, according to the report. The organization explained that a part of the activity could have been carried out with the involuntary approval of legal businesses.
Priority to the strict application of the laws
To combat the spread of illegal machines, the AGA report recommends that law enforcement agencies and legislators prioritize strict enforcement of laws to eradicate illegal and unregulated gaming machines. Also, the regulated gaming industry and law enforcement communities shared concerns about the threat illegal gaming machines pose to communities.
Arizona Attorney General and former Arizona Gaming Department Director Mark Brnovich said: “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”.
Jessica Feil, AGA chair of government relations and gaming policy advisor, said legal gaming brings immense benefits to the communities they serve, and operating with a gaming license is a privilege the industry takes seriously. Communities and owners should actively try to remove such machines from their properties and ensure that they operate fairly and are licensed.
Safety and integrity of gaming industry
To ensure that regulated gaming continues to support our communities and that consumers are protected, American Gaming Association (AGA) recommends that law enforcement and policy makers prioritize rigorous enforcement of laws to eradicate unregulated Gaming Machines. States and communities must resist the temptation to license these machines. Many jurisdictions are looking for new sources of revenue, especially in response to the economic impacts of the COVID-19 pandemic, by enabling these machines. This it only rewards bad behavior, erodes investment made by regulated entities, and exposes consumers to unnecessary risk. Companies cannot depend on illegal and unregulated games that put their customers at risk and must actively work to eliminate them.
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