The American Gaming Association sent a letter to the U.S. Justice Department last week urging federal government help in stopping unregulated gaming machines—often referred to as so-called “skill games”—that have spread to non-casino locations in several states.
“Support and resources from the Department of Justice and federal law enforcement agencies are critical to eliminating illegal gambling devices from our communities,” AGA President and CEO Bill Miller wrote in the letter.
The letter is urging enforcement of a law currently on the books that requires any company that makes, sells, or ships a gambling device that is sent across state lines to register with the Justice Department—as those in the regulated gaming industry do. Violators of the law, known as the Johnson Act, can be fined up to $5,000 and face up to two years in prison, in addition to forfeiting the machines.
“Unfortunately, illegal and unregulated machines continue to skirt the law and put consumers at risk,” said Jessica Feil, AGA’s vice president of government relations and gaming policy counsel, in an interview with CDC Gaming Reports. “The AGA and its members are urging the department to utilize the Johnson Act to investigate and prosecute illegal gaming machine manufacturers. This important step will protect players and, ultimately, root out these pervasive, bad actors.”
The AGA complains that the unregulated slot-like machines, which appear in locations as diverse as pizza shops, gas stations and laundromats, take advantage of legal loopholes or openly flout the law. In addition, the AGA points out that the machines do not meet federal requirements regarding anti-money laundering, are not tested or monitored to ensure fairness for consumers, are open to anyone, including minors and problem gamblers on self-exclusion lists from regulated casinos.
“Gambling outside the purview of regulators is rife with opportunity for money laundering and other activities that nefarious actors hope will go undetected,” said an AGA report released last spring.
Meanwhile, in Virginia, which instituted a ban on skill games last July, a manufacturer of those games claimed there has been a surge in illegal gambling since the ban became effective.
Former Congressman and U.S. Attorney Tom Marino, who currently works for the skill game producer Pace-O-Matic, said they’re putting pressure on state lawmakers to crack down on “unregulated mini-casinos,” according to a news report from Richmond station WRIC. Marino made the case that this development should prompt the legislature to revisit the idea of legalizing skill games and instituting regulations to control them.
“We hope Virginia will take the steps to regulate, to enforce the law, to take the bad guys off the street and hit them up for the taxes that they haven’t paid,” Marino said.
