AGA, IGA focus on alerting lawmakers and regulators to ‘critical problem’ with gaming

A member of the American Gaming Association said promoting responsible gaming is the No. 1 issue for the U.S. trade group, but a member fighting against unregulated gambling is also included.

Chris Cylke, senior vice president of government relations at AGA, and his organization have joined the Indian Gaming Association in the fight against lottery gaming and social bookmakers.

“I think this is a really key issue for the gaming industry,” Cylke said during Wednesday’s IGA webinar. “I believe that the development of these issues over the next few years will have a fundamental impact on what this industry will look like in several decades. It is very important that we get this right.”

Cracking

AGA sent a note in August to U.S. state regulators and legislators, asking them to address potentially illegal lottery games in their jurisdictions. AGA and IGA argue that these free games, which can turn into virtual currency, mimic regulated online casinos and bookmakers.

Anti-lottery groups say lottery companies circumvent state laws and regulations, pay no taxes and are not subject to the same responsible gaming protocols as regulated operators.

“The biggest goal here is transparency,” Cylke said. “Even if it turns out that these (lotteries) are increasing in number, at least California residents, tribes or commercial operators will know where you stand and make an informed decision about whether or not you want to get involved in this space. Do you want to go and change the law to make it clear that this is all a ruse. This will give you options.

Large market expansion and murky waters

Together with Sports Betting Alliance, AGA and IGA support each other together introducing these lottery companies to the regulated market. Tribal nations entered into a gaming compact in California and fought to make all forms of gambling acceptable to them.

IGA and AGA officials say lottery companies have made enough money operating illegally that they can now afford lawyers and lobbyists to argue their legality as companies.

Cylke said he spoke to gambling operators at AGA who said that if “lottery games were as clear-cut as those involved in them make them out to be, we would probably be in that vertical.” Cylke added that instead of playing Whac-A-Mole with the 50 U.S. states, he wants the federal government to do more to clean up the mess, but lotteries are not a top priority for politicians.

“Does it take a big scandal and then suddenly the feds get involved? This is not what we want,” said IGA Executive Director Jason Giles. “I think there is definitely politics involved.”

He says the Federal Trade Commission, which has regulatory authority over lottery games, “has no idea what’s going on” with legality issues.

“We certainly need to maintain the atmosphere at the federal level in terms of developing better policies against some of these illegal or unregulated gambling entities and making prosecuting them a priority,” Cylke said.

Potential progress

States and tribes largely control the legalization and regulation of sports betting, iGaming, and casinos in the US, but the recent introduction of the Safe Betting Actif accepted, it could lead to further clarification.

Although the AGA opposes it, Cylke said he will continue to work with tribal and commercial operators to convince state attorneys general and law enforcement about the murky waters of lottery gaming. As a joint IGA and AGA panel noted on Wednesday, next week’s U.S. elections could provide an opportunity to spread your message to new faces.

“I’m not completely satisfied with where we are right now,” Cylke said. “There is certainly progress to be made, but we are definitely getting there. It was encouraging.”

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