AGA: Operators Spending More on Responsible Gambling Initiatives

Responsible gambling is becoming increasingly important to US gaming operators. The American Gaming Association (A-G-A) announced on September 26 that the industry's investment in responsible gaming initiatives had reached $472 million in fiscal year 2023.

The logo and slogan of the American Gaming Association's responsible gambling initiative. (Source: American Gaming Association)

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This marks a significant increase in the industry's focus on responsible gaming practices, as it represents a 72% rise from the $275 million spent in 2017. That year, which came just before the overturning of the Professional and Amateur Sports Protection Act (paspa), set the stage for expanded legal sports betting and online gambling across many US states. However, it also contradicts a separate report recently published by the National Council on Problem Gambling.

According to the A-G-A, responsible gaming spending is distributed across several key categories. The largest portion of the $472 million went to customer service interactions, amounting to $135.4 million.

This investment highlights the importance of training and equipping front-line staff to address responsible gaming concerns effectively. The next largest expenditure was $122.4 million, allocated to developing and maintaining responsible gaming (RG) programs, underscoring the industry's commitment to sustaining structured efforts that promote safe gambling habits.

Another significant area of spending was consumer-facing responsible gaming education, with $107.7 million dedicated to raising awareness and educating the public about the importance of responsible gambling. This approach helps empower players with knowledge, enabling them to make informed decisions.

In addition, the industry spent $31.8 million on responsible gaming research and support for non-profit organizations dedicated to RG efforts. Lastly, $26.1 million was directed toward problem gambling supportive services, providing essential resources for individuals struggling with gambling addiction.

The A-G-Asreport highlights how the gambling industry has intensified its commitment to responsible gaming in the years since paspawas overturned. When the law was invalidated in 2018, states gained the authority to regulate sports betting and online gambling. In response, responsible gaming practices gained traction as an integral aspect of expanded legal gambling.

State-level gambling regulations often require that a portion of tax revenue from gambling activities be set aside for problem gambling and responsible gaming initiatives. These funds are used for a variety of purposes, including consumer education, treatment programs for problem gamblers, and research into gambling-related issues.

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Taking Responsible Gambling Seriously

As more US states legalize gambling, responsible gaming has become an increasing priority for both the industry and regulators. However, how responsible gaming is managed continues to vary from state to state, with each jurisdiction determining its own regulations and funding priorities.

Despite the current state-level approach, there are ongoing efforts at the federal level to establish a national framework for responsible gaming. Two federal bills have been introduced that aim to create a more uniform approach to responsible gaming across the country. These bills would set aside funding for research, education, and support programs, as well as introduce federal regulations on advertising and other responsible gaming matters.

One of the bills, the SAFE Bet Act, was introduced earlier in September by Rep. Paul Tonko and Sen. Richard Blumenthal. This proposed legislation seeks to address responsible gaming on a national level by setting standards for advertising and funding RG programs.

The legislative effort, the GRIT Act, was introduced in July. The GRIT Act aims to redirect revenue from the federal gambling excise tax to fund problem gambling and responsible gaming programs. Both bills represent growing interest in creating a comprehensive national approach to responsible gaming.

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