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American Gaming Association

Reg-tech – Easing the burden on compliance teams

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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.

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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.

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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.

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American Gaming Association

AGA Unveils Have A Game Plan Initiative’s Fifth Pillar: “Keep Your Cool”

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The American Gaming Association (AGA) announced the expansion of its “Have A Game Plan. Bet Responsibly.” public service campaign with the introduction of a fifth pillar: “Keep Your Cool”. This new pillar reinforces the campaign’s mission to promote responsible sports wagering by emphasizing athlete harassment is never appropriate.

The announcement comes as data highlights the growing effectiveness of responsible gaming programs across the country. According to recent research, 66% of Americans believe the gaming industry’s responsible gaming initiatives are effective, up from 59% in 2023. Among those who actively participate in gaming, 79% of physical casino players and 85% of sports bettors agree these programs are working, including an impressive 73% of young bettors aged 18-24.

“Responsible gaming efforts like Have A Game Plan and other proactive efforts by legal operators are resonating with consumers and making a difference. ‘Keep Your Cool’ builds on this momentum by reminding bettors that a betting result – good or bad – is not an invitation to criticize a team, official, or athlete,” said Bill Miller, President and CEO of the AGA.

Since its launch in 2019, “Have A Game Plan. Bet Responsibly.” has educated bettors through four foundational pillars:

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• Set a Budget: Establish and stick to a financial limit.

• Keep It Social: Bet responsibly as part of a shared activity.

• Know the Odds: Know the terminology and understand risks before placing bets.

• Play Legally: Use regulated, legal betting platforms.

The new “Keep Your Cool” pillar complements these principles by promoting sportsmanship and emphasizing the social aspects of sports betting:

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Respect the Game: Winning and losing are part of sports betting, nobody is perfect; the result of a bet should not prompt negative actions – in person or online – toward athletes and officials.

Stay Focused on Having Fun: Sports betting is entertainment.

NASCAR, an early supporter of Have A Game Plan, underscored the importance of the new pillar. “At NASCAR, we believe responsible gaming enhances the overall fan experience. ‘Keep Your Cool’ reflects our shared commitment to encouraging fans to bet responsibly and maintain a respectful approach to the sport they love,” said Steve Phelps, President of NASCAR.

With responsible gaming messaging resonating stronger than ever, Have A Game Plan. Bet Responsibly. continues to foster a more enjoyable betting environment for fans.

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AGA

Commercial Gaming Revenue Growth Continues in Q3 2024, Driving Industry’s 15th Consecutive Quarter of Growth

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U.S. commercial gaming revenue reached $17.71 billion in Q3 2024, the industry’s highest-grossing Q3 on record, according to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker. This makes Q3 2024 the industry’s 15th consecutive quarter of annual revenue growth, with September marking the 43rd straight month of rising year-over-year commercial gaming revenue.

Through the first nine months of the year, nationwide commercial gaming revenue stands at $53.24 billion, pacing 8.0 percent ahead of 2023 and putting the industry on track for a fourth straight record revenue year.

In Q3 2024, 29 of the 35 commercial gaming jurisdictions operational last year saw increased year-over-year revenue. This growth resulted in an 8.9 percent year-over-year increase in state and local taxes tied directly to gaming revenue, with commercial gaming operators contributing $3.79 billion in taxes across the quarter.

Quarterly revenue from land-based gaming – encompassing casino slots, table games and retail sports betting – totaled $12.56 billion, 0.62 percent lower than Q3 2023. Meanwhile, combined revenue from online sports betting and iGaming totaled $5.14 billion in Q3 2024 as online gaming made up 29.0 percent of commercial gaming revenue, a significantly higher share than in Q3 2023.

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Looking at each sector in Q3 2024:

  • Traditional Gaming: Traditional brick-and-mortar casino gaming generated quarterly revenue of $12.38 billion, a contraction of 0.9 percent year-over-year.
  • Legal Sports Betting: Americans legally wagered $30.3 billion on sports, generating $3.24 billion in quarterly revenue (+42.4% YoY). Recent market launches in Kentucky, Maine, North Carolina and Vermont contributed to this growth.
  • iGaming: iGaming generated $2.08 billion in revenue, marking a 30.3 percent year-over-year increase.

“Q3 2024 continued gaming’s momentum from the first half of the year, with online casino and sports betting driving strong growth. At the same time, new brick-and-mortar casino openings bolstered traditional gaming, which still accounts for the bulk of industry revenue,” said AGA Vice President of Research David Forman. “More than a quarter of commercial revenue now regularly comes from online sources, raising the importance of continued sustainable growth with consumers in those states.”

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American Gaming Association

AGA, ECA and BGC Sign MOU

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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.

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“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.

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