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The American Gaming Association (AGA) believes many federally regulated prediction markets have transformed into illegal gambling and sports betting outfits, siphoning revenue from the legal, taxed gaming industry. Prediction markets, the trade group argues, threaten jobs and tax revenue, as do other forms of illegal gambling like skill games, sweepstakes casinos, and offshore sportsbooks.
Illegal gambling operators are thriving at the expense of American consumers, siphoning billions in tax revenue from state governments, and undercutting the efforts of the legal market,” said AGA President and CEO Bill Miller. “It’s time for a national crackdown on the pervasive illegal market that is draining state coffers and putting people at risk.”
The AGA estimates that Americans wager $673.6 billion with illegal and unregulated gambling operators a year, with unregulated online slots and table games accounting for the lion’s share of the unlawful bets at $466.2 billion.
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One Foundation’s operating licence was suspended for six days after the DIA identified accounting failures relating to gambling proceeds, as well as a failure to surrender a licence for one of its pokies venues when required by law.
The DIA also issued new financial guidance for class 4 operators, with the aim of providing greater clarity on their accounting requirements and an explanation of their obligations.
The department said the guidance had been designed to “improve consistency across the sector and help prevent similar issues from occurring in future”.
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Operators were encouraged to take several practical steps, including enhancing terms and conditions, maintaining robust evidence and uptaking technical standards.
They have also been advised to thoroughly review their Know Your Customer, fraud detection protocols and contractual terms to reflect the guide’s recommendations.
They must also evaluate their current technical safeguards to ensure alignment with regulator expectations and certification standards.
