United States
United Kingdom
Summary
- American Gaming Association targets skill gaming manufacturers
- More players using skill gaming machines after COVID-19
- AGA asks Department of Justice to take action
In a move to oppose the mushrooming skill gaming industry, the American Gaming Association (AGA) has been urging the federal government to initiate an investigation into the matter.
The casino lobbying group had also called for taking action again the manufacturers of unregulated gaming terminals.
Skill Game Terminals Breach Laws
The AGA’s animosity towards unregulated gambling machines represents the vexation of the legalized casino industry. Such terminals bear a close resemblance to a classic slot machine and offer cash rewards. Usually seen in small restaurants, bars, and business outlets, unregulated gambling machines have mushroomed in the pandemic period.
Also known as skill game terminals (SGTs) these machines have managed to circumvent state laws and tough judgments due to their legally ambiguous nature. Machine producers argue that the terminals are not gambling devices like casino slot machines as it is different from the latter. Players have to employ their skills to avail the rewards and have to determine a winning payline on such terminals.
However, the AGA considers these terminals to be illegal gambling machines due to many concerns. One of the concerns related to these gaming terminals is that they siphon off gaming revenue which should be shared with local or state governments. This is because SGTs do not have any obligation to adhere to payout percentages. The machines do not issue IRS documents like the W-2G gambling winning tax form for slot earnings above $1,200 and don’t report the players’ gaming income, unlike licensed casinos.
Furthermore, the AGA considers the operation of SGTs as a risky practice for consumers. The AGA claims that such unregulated outlets siphon state revenue to criminal activities and therefore, are liable for prosecution. Jessica Feil, vice president of government relations and gaming policy at the AGA reiterated the opinion. Feil also called upon the Department of Justice (DoJ) to investigate these terminals and prosecute their manufacturers.
Skill Gaming Survives Despite Complications
Despite the judgments and opposition from the AGA, SGTs have garnered support from small business owners whose earnings were affected during the COVID-19 pandemic.
Skill games have also managed to survive because of the lack of state provisions on unregulated gambling. The AGA has remained firm on its stance and is keen on getting the authorities to shutdown SGTs.
