Association of Gaming Equipment Manufacturers and American Gaming Association combat unregulated gaming devices CDC Gaming Reports · February 18, 2020 at 8:14 am The Association of Gaming Equipment Manufacturers (AGEM) and the American Gaming Association (AGA) today announced a new partnership to combat the rapid spread of unregulated gaming machine activity throughout the U.S. The centerpiece of the campaign is the six-page “Unregulated Gaming Machine Fact Sheet” that explains the distinction between the regulated casino, lottery and distributed gaming markets and the unregulated segment that has been spreading at an alarming rate, the negative consequences of which include an increase in criminal activity and the lack of player protections. The fact sheet, which will be distributed to state and local policy makers, law enforcement, legislators, regulatory agencies, and media outlets, suggests potential solutions to combat the problem, such as the establishment of small state and local government task forces with law-enforcement representation. The fact sheet describes “the entire family of unregulated machines — often referred to as ‘amusement’ games to present a false impression of innocence — as falling into gray legal areas that exploit legal loopholes. Gray machine categories include “sweepstakes,” “skill,” “nudge,” “zero chance,” “no chance,” “pachislo” and “8-liners.” At the other end of the spectrum, regulated machines operate in a black-and-white legal environment. “Casino gaming is one of the most highly regulated industries in the U.S., with more than 4,000 state and tribal regulators dedicated to overseeing all forms of gaming, including electronic gaming machines,” the AGEM/AGA announcement states. “The recent growth of unregulated machines across the country raises a host of concerns which the organizations outlined in a fact sheet released today. Among them are the lack of testing, consumer protections, and responsible gaming measures, which underscore the need for states with gray market and illegal machines to make this a priority area of focus.” “The regulated gaming industry has rarely been more united on a singular issue and now we have a tool to address the misinformation and deception that unregulated machine companies use to confound law enforcement, the courts and local citizens,” said AGEM Executive Director Marcus Prater. “The spread of these machines represents a serious threat to the overall regulated market … and unregulated machines prey on confused players who see slot machine symbols and think they’re getting a fair chance when they absolutely are not.” “Stamping out the illegal market that threatens the safety of consumers will always be one of the gaming industry’s highest priorities,” said Bill Miller, CEO of the American Gaming Association. “The AGA is encouraged that policymakers in some states such as Virginia have begun to recognize the dangers of these machines and have taken recent legislative action toward outlawing them. Unfortunately, other jurisdictions where these machines have become pervasive may believe their only recourse is to regulate and tax them. Rewarding bad behavior is not the answer, and we hope our education efforts will make it clear that the only real solution is to stop the spread of these devices.” The ongoing campaign will target developments in key states such as Pennsylvania, Missouri and Virginia where the spread of unregulated machines has been particularly egregious. The continuing outreach will provide factual clarity to stakeholders to help stop the spread of misinformation that has allowed unregulated machines to proliferate and the corresponding negative consequences to rapidly multiply. As an indication of the regulated industry’s cooperation on this effort, more than 20 professional gaming organizations have joined AGEM and the AGA in signing off on opposition to the spread of unregulated gaming, including the National Indian Gaming Association (NIGA), the North American Association of State and Provincial Lotteries (NASPL), the International Center for Responsible Gaming (ICRG), the National Council on Problem Gambling (NCPG), multiple state casino and tribal associations and both of the leading independent test labs that ensure quality and adherence in regulated markets around the world.