American Gaming Association
Reg-tech – Easing the burden on compliance teams
Greg Ponesse, Chief Revenue Officer at Compliable
The year is coming to an end, and we can look back at an interesting 12 months that have seen the US betting and gaming landscape further expand into three new states, Vermont, North Carolina and Kentucky.
The American Gaming Association (AGA) recently released numbers that showed commercial gaming revenue was boosted in Q2 of 2023, hitting a record of $16.07bn. The impressive results marked the 10th consecutive quarter of growth for the industry.
Yet, some operators have had to navigate through choppy waters, with news stories from the last 18 months including Churchill Downs, MaximBet, PlayUp, Fubo, FOX Bet and WynnBet closing or pulling out of states as they struggle with profitability.
Sports betting, the main legalized vertical in the US, is such a low margin business that the ability to save money anywhere in operations is so important. Competition is extremely high, and the sports betting markets in the majority of legalized states have been dominated by a handful of behemoths such as DraftKings and FanDuel.
While these operators have large compliance teams to cope with the fragmented regulatory landscape that exists across states in the US, smaller to medium-sized companies have fewer resources to handle ever-changing regulations while also preparing for new states opening up.
Historically, if not handled by an internal team of compliance staff, regulatory issues were simply given to outside counsel with their associated high legal fees. Furthermore, overstressed smaller compliance teams leave room for mistakes as a result of human error which can lead to large regulatory fines.
The number of reg tech solutions now available in the gambling space can be hugely beneficial and can drive down costs in a number of ways, with one of the major advantages being that companies can benefit from compliance work that is being done in one market across similar jurisdictions.
Despite a lack of common regulatory approaches in legalized US states, there are still many similar obligations, and with technology, the process to complete these tasks can be automated. Licensing of employees and reporting of revenues or other data are common compliance duties that most regulators require. This type of requirement can easily be handled by technology rather than employees, significantly increasing efficiency, and freeing the team to focus on higher level problems which can be critically important when launching in new jurisdictions.
Simply put, reg tech allows a smaller team to operate with the same skills and efficiency as a much larger team and can help cut costs while still maintaining operational compliance.
Even if fewer US markets are currently opening up compared with a few years ago, successful gambling operators and suppliers are targeting multiple states at a minimum. We have passed the point where any one person can be an expert on every gambling jurisdiction’s requirements and tech is a necessary component to help manage the processes.
As 2024 is approaching, we will see further regulatory developments in the US betting and gaming space and more consolidation cannot be ruled out as operators grapple with being profitable in a hyper competitive sector.
Reg tech can play an important part, cutting costs while streamlining and simplifying processes and procedures, helping operators to succeed in the exciting US market.
The American Gaming Association (AGA), European Casino Association (ECA), and the Betting & Gaming Council (BGC) announced the signing of a memorandum of understanding (MOU) that marks the beginning of a collaboration grounded in shared industry values and priorities. The MOU formalizes a commitment among the three associations to address key issues facing the global gaming industry including illegal gambling, responsible gaming, innovation, and security.
“This new partnership is a significant step forward in our collective efforts to advance the legal gaming industry and protect consumers around the globe. By sharing our unique resources, we will expand our fight against illegal gambling to new fronts, work together to strengthen responsible gaming, and innovate around business best practices,” said AGA President and CEO Bill Miller.
“By fostering dialogue and cooperation across borders, the AGA, ECA, and BGC are taking a proactive approach to safeguarding the integrity of the legal gaming industry and ensuring its continued growth and success,” Miller added.
The MOU will create a platform for undertaking joint research projects and bringing each organization’s staff and members together to share expertise.
“The European Casino Association stands united with the AGA and BGC in its commitment to addressing the key issues facing all gaming industry stakeholders. The ECA fully backs this initiative and supports the ongoing efforts to rigorously combat illegality within our industry, continuously strengthen player protections and security, and ensure the creation of an environment that fosters innovation and growth within the gaming community. On behalf of the ECA, I look forward to participating in the forthcoming law enforcement roundtable and to sharing the benefits of these learnings with our members,” said Erwin van Lambaart, Chairman of the European Casino Association.
Betting and Gaming Council CEO Grainne Hurst said: “This partnership marks a new chapter in our shared vision to build a world-class, trusted and sustainable betting and gaming industry. BGC members are rightly proud of their reputation as global leaders, and they know the power of collaboration. Working together with the AGA and ECA, I am confident our shared knowledge and expertise will be vital to bolstering safer gambling standards while tackling the threat of the growing and unsafe unregulated gambling black market in the UK.”
The first initiative under this MOU will be a law enforcement roundtable focused on combating illegal gambling. Scheduled for January 2025, this roundtable will bring together industry leaders, law enforcement officials, and regulators to discuss the impact of illegal gambling on legal operators, consumer safety, and the global financial system. The session will also explore strategies for enhancing cross-jurisdictional communication and developing actionable solutions to address these challenges.
American Gaming Association Senior Vice President of Government Relations Chris Cylke issued the following statement in response to Sen. Richard Blumenthal (D-CT) and Rep. Paul Tonko (NY-20) introducing the SAFE Bet act, which would implement a “nationwide prohibition” on sports betting:
“Today’s regulated sports wagering operators are contributing billions in state taxes across the U.S., protecting consumers from dangerous neighborhood bookies and illegal offshore websites, and working diligently with over 5,000 state and tribal regulators and other stakeholders to ensure a commitment to responsibility and positive play. Six years into legal sports betting, introducing heavy-handed federal prohibitions is a slap in the face to state legislatures and gaming regulators who have dedicated countless time and resources to developing thoughtful frameworks unique to their jurisdictions, and have continued to iterate as their marketplaces evolve.”
American Gaming Association
MGM Resorts & BetMGM to Increase Responsible Gaming Messaging at NFL Stadiums During Upcoming Season
MGM Resorts International and BetMGM announced that they are once again partnering with the American Gaming Association (AGA) to promote Responsible Gaming Education Month (RGEM 2024) in September. The two companies will execute their responsible gaming campaign at designated National Football League (NFL) stadiums for the second year, with increased exposure for GameSense. GameSense is an industry-leading responsible gaming program first developed and licensed to MGM Resorts in 2017 by the British Columbia Lottery Corporation (BCLC). The program focuses on positive, transparent, and proactive engagements with guests and customers about how to gamble responsibly. With this development, GameSense marketing will appear more often and in more prominent venue locations during each game.
GameSense messaging will be promoted at the following stadiums:
• Acrisure Stadium (Pittsburgh Steelers)
• Allegiant Stadium (Las Vegas Raiders)
• Empower Field at Mile High (Denver Broncos)
• Ford Field (Detroit Lions)
• GHEA Field at Arrowhead Stadium (Kansas City Chiefs)
• M&T Bank Stadium (Baltimore Ravens)
• MetLife Stadium (New York Jets)
• Nissan Stadium (Tennessee Titans)
• State Farm Stadium (Arizona Cardinals)
In 2023, MGM Resorts and BetMGM were among the first gaming operators to promote responsible gaming through marketing within League stadiums.
“We’re excited to bring responsible gaming initiatives directly to fans in these NFL venues again this season. We are setting a new standard for safety and awareness in the industry. At BetMGM, we believe that protecting our players and promoting responsible play is essential to the future of sports betting,” Rhea Loney, Chief Compliance Officer at BetMGM, said.
BetMGM will also add to its catalog of advertisements in the coming months that highlight its comprehensive responsible gaming resources. The spots will feature brand ambassadors sharing engaging messaging, similar to its highly regarded responsible gaming commercial featuring NHL MVP Connor McDavid.
Also, coinciding with RGEM 2024, MGM Resorts is announcing a $440,000 contribution to fund responsible gaming research through the International Center for Responsible Gaming and Kindbridge Research Institute. These studies aim to advance industry best practices and fill significant research gaps on under-studied populations, including women military Veterans.
Stephen Martino, SVP and Chief Compliance Officer at MGM Resorts, said: “The importance of responsible gaming research funding cannot be overstated. As a gaming industry leader, it’s imperative that our company supports efforts to better understand the diverse impact gambling has on various populations, including those that may be at greater risk of developing problematic behaviors.”
Throughout RGEM 2024, MGM Resorts and BetMGM will continue to conduct extensive training to raise employee awareness of responsible gaming. Recently, MGM Resorts’ GameSense Advisor Program certified more than 500 customer-facing employees, equipping them with the skills and confidence to educate customers about casino games and empower them to make informed decisions. BetMGM will also deploy extensive employee training, including additional education for its VIP Staff, while advancing responsible gaming through lived experiences with its EPIC Global Solutions partnership.
Additionally in September, new GameSense messaging will be displayed prominently on table games throughout MGM Resorts’ properties nationwide. Similar messaging will continue to be featured on all slot machines, 8000 of which include QR codes offering access to responsible gaming information and educational materials from GameSense. Responsible gaming tips will also appear on MGM Resorts’ Las Vegas marquees and on more than 35,000 screens across the company’s portfolio. BetMGM will release improved responsible gaming tools within its platform as well. These tools are designed to help players manage their budgets, stay within their limits, and promote a responsible and sustainable entertainment experience.
MGM Resorts and BetMGM continue their partnership with the AGA’s “Have A Game Plan. Bet Responsibly.” public service campaign to educate new and seasoned bettors on responsible sports wagering. The campaign aims to protect customers and reinforces the use of regulated markets, which prioritizes player protection and safeguards.
Joe Maloney, SVP of Strategic Communications at American Gaming Association, said: “Collaboration is integral to strengthening our collective responsibility efforts. Both in their work with the AGA and throughout the legal, regulated gaming industry, MGM Resorts and BetMGM continue to be leaders in forming innovative partnerships that are advancing responsible gaming in meaningful ways.”
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