The American Gaming Association (AGA) has released new data revealing widespread concern among Americans regarding unregulated “skill” games. The survey sheds light on public perceptions, highlighting that a significant majority view these devices as games of chance rather than skill. AGA President and CEO Bill Miller underscores the need to address the dangers posed by unregulated gambling and advocates for stronger regulatory measures.
Public Perception of “Skill” Games:
Two-thirds (65%) of individuals familiar with “skill” games believe they are akin to slot machines, relying on random chance rather than skill.
The perception is that even skilled players cannot reliably influence the outcome of these games.
Concerns About Unregulated Machines:
Unregulated “skill” machines are commonly found in convenience stores, bars, strip malls, and other community establishments, operating outside the regulated gaming marketplace.
Previous AGA research estimates that there are 580,651 unregulated gambling machines in the U.S., constituting 40% of all gambling machines nationwide.
Community Impact:
Survey respondents who are familiar with “skill” games express concerns about the negative influences of these machines in their communities:
71% believe that “skill” machines lack the player protections available in casinos.
64% agree that these machines are too easily accessible to children.
56% believe “skill” games increase the risk of crime, posing a threat to employees and customers of businesses where the devices are located.
Taxation and Regulatory Oversight:
Two-thirds (64%) of those familiar with “skill” games express concern upon learning that these machines are taxed at a significantly lower rate compared to casino slot machines.
Lack of regulatory oversight is highlighted as a major issue, with implications for consumer protection and community well-being.
Economic Impact:
AGA emphasizes the economic impact of unregulated “skill” games, revealing that for every dollar bet by consumers, regulated machines in Nevada keep 7.2 cents on average, while unregulated machines keep 25 cents.
Revenue and Taxes:
Americans wager an estimated $109 billion annually on unregulated “skill” machines, resulting in an annual cost of $8.7 billion in state taxes and $27 billion in legal gaming revenue.
In 2022, the legal gaming industry generated a record $13.49 billion in direct gaming tax revenue paid to state and local governments.
AGA President Bill Miller stresses the need for a robust legal market to ensure the strength, safety, and responsibility of the gaming industry. The data presented in the survey underscores the urgent need for regulatory measures to address the risks associated with unregulated “skill” games. As the AGA and industry stakeholders testify, the findings provide a compelling case for policymakers to take decisive action in protecting consumers and communities from the negative impacts of unregulated gambling.