IMGL CONFERENCE PRE-FEATURE
An estimated 625,316 unregulated machines currently operate nationwide, representing a 7.7 percent increase since 2022. These devices generate approximately US$30.3 billion annually, while states lose an estimated US$9.5 billion each year in foregone tax revenue. 16 Consumer risks are significant. Unregulated machines retain roughly 25 cents per dollar wagered, compared with an average of 7.2 cents for regulated slot machines in Nevada. Separately, these devices offer no assurance of fair play and create substantial liability risks for small businesses. Law enforcement has linked illegal machines to money laundering, drug trafficking, and other criminal activity, with regulators having no visibility into ownership, payouts, or financial flows. States have responded through seizures, cease-and-desist orders, litigation, and legislation targeting both machine operators and location owners. The importance of State- and Tribal- regulated gaming State and tribal governments have long held authority to determine whether gaming should be legalized and, if so, how it's regulated. This framework enables jurisdictions to shape policies and to reflect individual values and needs. For tribal nations, gaming has been foundational to economic development, self-sufficiency, and essential public services. Illegal and unregulated gambling operators bypass these policy choices entirely. By operating outside the law, they undermine state and tribal sovereignty and expose consumers to significant risk.
is essential to preserving integrity, respecting sovereignty, and ensuring public trust. Combating the illegal market: a coordinated enforcement framework The scale and persistence of illegal gambling demands a coordinated response across law enforcement, regulators, and policymakers alike. Legal market expansion alone does not displace illegal activity. Enforcement reinforces standards and ensures regulatory evasion carries real consequences. A September 2025 GeoComply study 17 found states taking action against illegal operators experienced 10 percent higher year-over-year growth in active players and 39 percent higher growth in new accounts compared with non-enforcement states. When illegal operators are curtailed, consumers shift to licensed, regulated alternatives. Gaming regulators and state attorneys general must consistently investigate and act against unlawful operators. The high bar to obtain and maintain a gaming license is intentional; enforcement preserves that standard, protects consumers, and ensures lawful operators are not undercut. Conclusion: protecting the legal market Illegal gambling is a solvable policy and enforcement challenge. Success requires vigilant enforcement, clear and modernized statutes, and sustained cooperation among law enforcement, regulators, policymakers, and industry stakeholders. Safeguarding protects consumers, maintains regulatory integrity, and honors the policy choices of states and tribal governments. regulated gaming
BILL MILLER President and CEO,
American Gaming Association For more information contact press@americangaming.org
Protecting state- and tribal-regulated gaming is not simply a matter of industry interest. It 16 American Gaming Association, Sizing the Illegal and Unregulated Gaming Markets in the United States , https:// www.americangaming.org/resources/sizing-the-illegal-and-unregulated-gaming-markets/ 17 GeoComply, Crackdowns Pay Off: Enforcement Drives Players to Legal Sportsbooks (September 2025), https:// www.geocomply.com/news/crackdowns-pay-off-enforcement-drives-players-to-legal-sportsbooks-geocomply-data- shows/
IMGL MAGAZINE | MARCH 2026
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