In the past, the commercial gaming industry faced challenges from unregulated “skill” games in bars and stores. But now, unlicensed slot machines and digital “sweepstakes” gambling are posing new threats. These unregulated forms of gaming are harming the regulated industry by diverting consumers away from licensed establishments and reducing tax revenues.
The American Gaming Association warns that unregulated gaming will hurt the economy by cannibalizing regulated gaming and reducing job opportunities in the industry. The indirect consequences of unregulated gaming are even more damaging. Trust in the industry, which has been built over decades, is at risk. Investors may become wary of uncertainties, leading to a decline in investment. This lack of trust can also impact public policies related to urban development, employment, and tourism.
While some suggest licensing unregulated operators as a solution, this would erode the trust that has been carefully built over the years. It would also introduce uncertainty into capital markets. Instead, regulators should follow the example of Michigan by issuing cease-and-desist orders to sweepstakes operators. Maintaining high standards of licensure is crucial to preserving the integrity of the industry.
The key is to reinforce the message that legal, regulated gaming is the best choice for consumers and investors. By issuing fines and orders against illegal operators, the industry can protect its reputation and ensure long-term success. Ultimately, the future of gaming and the communities it supports relies on upholding these standards of licensure.
