• advocacy

    Payments Modernization

    The gaming industry’s cutting-edge technology and world-class entertainment make it the embodiment of the 21st century hospitality industry. Yet, casinos remain one of the most cash-intensive businesses in the world.

    Payments Modernization Principles

    The American Gaming Association is committed to working with regulators, policymakers, and key stakeholders to advance payment modernization through a thoughtful, collaborative process. Allowing customers to use digital payments in casinos supports public health while providing the choice and convenience they've come to expect in their daily lives. It also bolsters regulatory efforts and provides innovative responsible gaming measures.

    The AGA's payments modernization working group has introduced Payments Modernization Policy Principles that provide a framework for regulators to adopt digital payments on the casino floor and capture the benefits that payments innovation provides. These principles will be used to educate state and tribal regulators considering expanded payment choice.

    Principles for Casino Gaming Payments Modernization

    What does payment modernization look like?

    Every gaming jurisdiction will implement payment modernization differently. It could range from card services—already available in some states today—to using an app on your phone to purchase gaming chips or credits. Educating regulators and policymakers on modern payment technologies will help them determine the best approach for their state and constituents.

    Customers can have confidence in the security of their transactions regardless of their gaming environment or physical jurisdiction. Licensed gaming companies work with payment processors to comply with financial institution security and data protection standards that have been well-established by institutions like PCI and NACHA.

    As with all modern innovation, digital payment technology is constantly evolving. Recognizing this, lawmakers should craft statutes and regulations that allow regulators the flexibility to encourage gaming innovations rather than define limited payment options for consumers. Overly proscriptive or inflexible laws can prevent the industry from adapting to the dynamic market and consumer demands.

    Payments Modernization FAQs

    Why does payment modernization matter?

    Adding new payments to the casino floor allows customers to make gaming transactions in a convenient form that gives them the choice they are used to in their daily lives; creates an omnichannel experience for the patron by reducing friction between gaming and non-gaming segments of an integrated resort; and extends digital payment options currently in use by sports betting and online casino apps.

    Modern payment options also provide customers with responsible gaming tools to monitor gaming activity and set spending limits. Digital payments equip consumers with real-time information on their spending across verticals, keeping them in control of their budget. The more customers are empowered to self-monitor and govern their own spending and gaming behavior, the better.

    Further, the widespread adoption of digital payments in gaming will offer compliance teams and regulators better oversight and improve Know Your Customer (KYC) and anti-money laundering (AML) capabilities. Ensuring applicable state and tribal regulations regarding digital payments are aligned with relevant federal regulations will eliminate complexity, simplify industry compliance, and create new tools for regulatory and law enforcement efforts to combat illicit activity.

    Digital transaction networks will also create transparency and streamline currency transaction reporting (CTR) for the industry. With better tools through digital payments, gaming industry and law enforcement partners will be able to focus on high-risk transactions and gain deeper insights into customer funds and background, allowing authorities to more easily obtain and analyze relevant evidence.

    Payments Modernization and Responsible Gaming Infographic