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Gambling in the USA

Unregulated ‘Skill’ Machines are Games of Chance, Say Two-Thirds of Americans Familiar with Them

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New AGA data shows majority of Americans concerned about dangers of ‘skill’ games

Among Americans familiar with unregulated ‘skill’ machines, a decisive majority recognize that these devices are games of chance, not skill, according to new American Gaming Association (AGA) data. Two-thirds (65%) of those who are familiar with ‘skill’ games say that they are no different from slot machines where wins are based on random chance and that even a skilled player cannot reliably influence the outcome.

“Unregulated machine manufacturers have built their businesses by duping consumers and small businesses while avoiding taxes, oversight and consumer protections,” the President and Chief Executive Officer for the AGA, Bill Miller, said. “These results are further evidence that Americans see these machines as a threat that should be eliminated, not regulated.”

‘Skill’ machines are often found in convenience stores, bars, strip malls and other community establishments, operating outside of the regulated gaming marketplace. Previous AGA research estimates that 580,651 unregulated gambling machines exist in the United States, constituting 40% of all gambling machines nationwide.

The survey also reveals those familiar with ‘skill’ games overwhelmingly view the machines as negative influences in their communities:

  • 71% say ‘skill’ machines lack the player protections that are available to players in casinos.
  • 64% agree ‘skill’ machines are too easily accessible to children.
  • 56% say ‘skill’ games increase the risk of crime and endanger employees and customers of businesses where devices are located.

Upon learning that ‘skill’ machines are taxed at a far lower rate and lack the same regulatory oversight as casino slot machines, two-thirds of Americans familiar with ‘skill’ games (64%) express concern about the presence of such devices in their communities.

“Keeping America’s gaming industry strong, safe and responsible can only be done through the robust infrastructure of the well-established legal market, not by rewarding bad actors with half-measures that fail to address the dangers of unregulated gambling,” Miller said.

The new AGA data comes as the AGA and other industry stakeholders testify today during a Pennsylvania Senate Democratic Policy Committee hearing on the presence of ‘skill’ games in the state, hosted by Chairwoman of the Senate Democratic Policy Committee, Senator Katie Muth. The hearing will be held at 11am ET at the Radnor Township Municipal building in Wayne, PA (301 Iven Ave., Wayne, PA 19087) and can be streamed online.

Background

  • While most Americans see ‘skill’ games as similar to traditional casino slots, AGA findings show for every dollar bet by consumers, regulated machines in Nevada keep 7.2 cents on average, while unregulated machines keep 25 cents.
  • Americans wager $109 billion each year with unregulated ‘skill’ machines according to AGA estimates, at 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, not including billions more paid in income, sales and other taxes.
  • Policymakers, regulators, consumers and gaming industry stakeholders and allies can find resources to join the fight against illegal gambling at StopIllegalGambling .org.

Methodology

Kantar, on behalf of the AGA, conducted an online survey from August 11 to 18, 2023, among a nationally representative sample of 2,002 American voters aged 21 and over. The margin of error is +/- 2% and greater among subgroups.

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Compliance Updates

Arizona Department of Gaming Releases October Sports Betting Figures

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Bettors in Arizona wagered approximately $791 million on sports in October of 2024, according to a new report by the Arizona Department of Gaming. This represents an approximate 22% increase when compared to October of 2023.

The state collected approximately $2.35 million in privilege fees in the month.

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Gambling in the USA

Neosurf & Betting Hero to reveal results of their in-depth study into US online gambling and payment habits in exclusive two-part webinar series

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Neosurf, the globally trusted provider of swift and secure cash-to-digital payment solutions, has announced it will be sharing the findings of a recent study into the online betting habits, preferences and frustrations of US players in an exclusive two-part webinar series beginning on January 14th.

Neosurf commissioned the research via Betting Hero – a leading US-based iGaming portal with expertise in casino, sports betting and DFS. The webinars will see Neosurf CEO Americas, Sue Page, Betting Hero’s Co-Founder and President, Jai Maw, and Senior Director of Product and Research, Ernie Ropas, dive into the report’s key findings and discuss what some of the more surprising results could mean for operators.

The survey, which featured respondents from New Jersey, Colorado and North Carolina, aimed to help operators and regulators within the gambling industry better understand the typical US bettor – how and why they bet, what tools they use to manage their budget and what Responsible Gaming means to them. The findings will be revealed in the webinars and used to identify areas where Neosurf’s products can help operators provide a better user experience.

The research highlighted several aspects of payments and responsible gaming that bettors felt could be improved. Problems with payments remain an issue – 52% of respondents said that they’d experienced payment issues in the past year, and with over 50% depositing and withdrawing multiple times each month, there is a significant cost impact to the operators.

Additionally, respondents indicated they’d be in favour of using a service that could share pre-verified ID information with operators, with ease of use for new payment methods and seamless integration across multiple platforms identified as important factors in their choosing and remaining loyal to a single sports betting platform.

Sue Page, Neosurf CEO Americas, said: “It was important to us to gain a more detailed insight into the US sports bettor. We wanted to talk to the players and ask questions that no one else is asking, and  through our collaboration with Betting Hero I’m delighted that we now have a comprehensive piece of research.

“Offering valuable insights into player habits – how and why they bet, the ongoing pain points they’re experiencing with payments and their thoughts on Responsible Gaming—we’ll be taking a deep dive into the results of the survey in our two-part webinar series starting at 10:00 ET on January 14th, and we encourage all US-focused operators and regulators to join us.”

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Gambling in the USA

Saracen Casino Resort Chooses QCI Chatalytics to Enhance Casino Operations with Integrated AI Solutions

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Saracen Casino Resort has selected Quick Custom Intelligence’s (QCI) Chatalytics, an integrated AI-driven suite, to revolutionize its casino operations and elevate guest experiences. The QCI Chatalytics solution, which includes Slot Copilot, Player Copilot, Dashboard, and the Robot Button, leverages OpenAI integration to provide real-time insights and streamlined decision-making across the casino floor.

QCI Chatalytics offers a powerful blend of AI-powered tools designed to optimize both player and slot management. With Slot Copilot, operators gain enhanced capabilities for real-time slot performance monitoring, predictive analytics, and dynamic task assignment. Player Copilot delivers personalized player engagement by analyzing customer data to inform service decisions and reward recommendations. The Dashboard component offers an intuitive, real-time display of key metrics, enabling data-driven insights at a glance. Additionally, the innovative Robot Button automates routine processes, allowing staff to focus on higher-value tasks and improve overall efficiency.

Clayton Mason, Senior Director of Marketing of Saracen Casino Resort, expressed enthusiasm about the partnership: “Integrating QCI Chatalytics into our operations marks a significant step in our strategy to harness the power of AI. With advanced tools like the Robot button, Slot Copilot and Player Copilot, we can deliver a more tailored and efficient experience for our guests while gaining deeper insights into our gaming operations.”

Dr. Ralph Thomas, CEO of QCI, shared his vision for the collaboration: “We’re excited to bring the capabilities of QCI Chatalytics to Saracen Casino Resort. By integrating OpenAI technology, our solution provides unprecedented levels of automation and insight. We believe Chatalytics will play a crucial role in optimizing floor operations and enhancing guest satisfaction through real-time, data-driven decision-making.”

The QCI Chatalytics platform is part of Quick Custom Intelligence’s commitment to driving innovation in the gaming industry, offering a comprehensive suite of solutions to streamline operations and enhance the player experience.

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