Gaming regulators across America have the responsibility of providing oversight to ensure fair and responsible practices for operators and their customers.
The question was addressed by panelists at SBC Summit in Lisbon, where four experts discussed how regulatory frameworks shape the future of the U.S. gambling industry. The panel also discusses how regulators serve as a catalyst for responsible practices and the pivotal role pre-emptive regulations play in maintaining a sustainable U.S. industry.
The panel included BetMGM Vice President of Payments, Risk & Fraud Prevention Liron Warhaftig and Princeton Public Affairs Group Partner Bill Pascrell, III.
The gaming leaders were also joined by Bally’s NAI COO Brett Calapp and George Rover, Executive Director at the Responsible Gambling Affiliate Association.
Regulators and operators collaborate
Regulated U.S. gaming markets require operators and regulators to work together to provide safe and fair gaming experiences for customers. The relationship between operators and regulators has come into question with the SAFE Bet Act, a proposed measure that aims to create federal oversight for the state-run U.S. sports betting industry.
Even as the measure is considered, operators and regulators continue to provide oversight.
“As an operator, It’s a two-way street, you really have to work closely with the regulator,” said Calapp during the panel. “We strive to have a collaborative relationship between the two because we’re both not always so we have to find ways to meet in the middle.”
Regulators across the country also recognize they have the responsibility to foster a safe and fair environment especially as the U.S. gambling industry continues to evolve.
“It’s really about communication,” said Rover. “In the state of New Jersey, the regulators take pride in working very closely with operators.”
The desire for regulators to collaborate with operators also provides learning opportunities.
“A lot of times a regulator’s first impression of an issue is wrong,” continued Rover. “In most cases, an operator has a lot more experience regarding the issue and can explain.”
Sets of changes throughout the industry
Regulators are dealing with a myriad of concerns regarding regulated sports betting, including the availability of college player props in several markets across the country.
Gambling advertising concerns have also been raised leading to operators ensuring they adhere to regulatory standards while continuing to maintain and grow market share.
“At the end of the day, as much as operators take proactive steps to meet standards as long as there are no clear guidelines from the regulator about what is expected in certain areas there’s always going to be a very fine balance,” said Warhaftig.
Impact of legislation on operators
Operators are also facing pressure as certain U.S. markets implement and propose tax revenue changes. Last year, Illinois raised its sports betting tax rate, which is now based on a sliding scale. Lawmakers in Maryland and Ohio are also considering tax increases.
“When states think about changing taxes they can’t think short term. If you have a budget deficit don’t go to online gambling and hike up the rate to get something short-term,” added Calapp.
The tax rates are also impacting customer behavior as several U.S. markets and their licensed operators are seeing players spend their money in other regulated states. The impact is being felt in New York, which has the highest sports betting tax rate at 51%.
“For years, there have been New Yorkers coming across the bridge to New Jersey to wager on the NFL and the Super Bowl,” said Pascrell, III. “There is still traffic coming from New York to New Jersey because of the better player experience and that is a result of the tax.”
Operators and regulators are facing challenges but maintain a commitment to players.
Regulation and compliance will continue to be a hot topic in 2025 as the U.S. gaming industry continues to change with the looming debut of Missouri as a regulated market.
How compliance can influence regulation across the U.S. may also continue to shift.
