Advocacy in action
AGA unites the American gaming industry to advance a policy agenda that ensures gaming thrives and contributes to local communities. We advocate for casino operators, manufacturers, suppliers, and employees, speaking for the industry on a range of business, legislative, and regulatory issues.
Policies
Congressional Gaming Caucus
The Congressional Gaming Caucus, co-chaired by Representatives Guy Reschenthaler (R-PA) and Dina Titus (D-NV), serves as a key advocate for the gaming industry on Capitol Hill. Through collaboration with AGA, the bipartisan, geographical diverse caucus champions policies that support responsible growth, protect jobs, and ensure the industry’s ongoing success across the country.
AGA PAC
Strengthen the gaming industry’s efforts to foster congressional champions. With countless interests competing for attention in today’s political environment, AGA’s bipartisan political action committee (PAC) raises awareness and extends the gaming industry’s reach in Washington, D.C.
This critical tool gives our industry the edge it needs to support lawmakers who share the industry’s perspective on key issues.
WASHINGTON – American Gaming Association (AGA) President and CEO Bill Miller released the following statement on bipartisan legislation Reps. Dina Titus (NV-01) and Guy Reschenthaler (PA-14) introduced today to repeal the federal excise and head taxes:
“The federal excise and head taxes levied on legal U.S. sportsbooks generate little meaningful revenue for the government. Instead, they place legitimate businesses at a significant competitive disadvantage against illicit gambling operations which skirt taxes and licensing fees. Though originally enacted in the 1950’s as a tool to curb illegal gambling, these antiquated federal taxes now give illegal operators a leg up.
“To absorb the unnecessary burden of these taxes, legal sportsbooks are forced to offer worse odds and payouts or reduce investment in promoting legal betting channels to the public. Furthermore, the head tax serves as an impediment to hiring at a time when providing jobs is critical.
“I’m grateful to the Congressional Gaming Caucus’ Co-Chairs Reps. Titus and Reschenthaler for introducing this legislation today to provide regulated operators with meaningful relief as they recover from the COVID-19 sports shutdown. Eliminating these taxes is a long overdue step to enable a legal, regulated environment for sports betting that will better protect customers and generate much-needed revenue for state and local economies.”
Background
- The Internal Revenue Code requires regulated sports betting operators to pay a 0.25% federal excise tax on all wagers, in addition to a $50 annual tax (“head tax”) for every employee engaged in receiving bets.
- These taxes accounted for less than $33 million in federal tax dollars in 2019.
- Sportsbooks operate with a very low margin even in the lowest-taxed jurisdictions. For example, Nevada sportsbooks’ revenue is typically 5 percent of the total amount wagered, before accounting for taxes and operator expenses.
- AGA research released Tuesday found that consumers want to wager legally but are still confused about which options are safe and regulated. Educating consumers about their legal options is critical to bringing bettors into the legal, regulated market.
- Miller encouraged Congress to repeal the excise tax in his testimony before the Senate Judiciary Committee on Wednesday.
Washington, D.C. – Today, American Gaming Association (AGA) member Circa Resort and Casino hosted President Trump for an important event, building on our industry’s strong ties with the president. We are grateful for Circa CEO Derek Stevens for hosting the event and taking the opportunity to convey to President Trump and his team our key tax priorities in the year ahead, including the raising of the slot tax threshold and eliminating the sports betting excise tax. The following statement can be attributed to Bill Miller, president and CEO of the AGA:
“Today’s event is a testament to the president’s commitment to making sure that the tax code not only encourages job creation, but also ensures workers keep more of their hard-earned money.
“It’s exciting for our industry that the president visited a casino property so early in his second term. This event clearly demonstrates the positive role the gaming industry plays in the U.S. economy.
“President Trump’s tremendous support for the gaming industry during his first term was unprecedented – for the first time in history our industry was able to obtain federal economic relief in the wake of the COVID-19 shutdowns. We look forward to further engagement with President Trump throughout this year on critical tax policy and other important industry priorities.”
AGA Senior Vice President Chris Cylke issued the following statement on the proposed Betting on our Future Act:
“The American Gaming Association (AGA) and our members adamantly oppose any legislation that seeks to ban or limit casino gaming advertising, including for legal sports betting.
Any such effort only serves to reduce awareness for legal options to the benefit of illegal, offshore operators and the detriment of consumers and communities. The proposed legislation would violate well-established free speech protections and undermine the expertise of more than 5,000 state and tribal gaming regulators across the country.
Responsibility is a foundation of the legal gaming industry and that includes with advertising. In fact, there’s never been more attention paid or resources invested in responsible gaming and problem gambling resources. This includes our proactive efforts establishing the Responsible Marketing Code for Sports Wagering, which mandates responsible gaming message inclusion and imposes restrictions on target audiences, outlets and content.
Congress should instead focus its attention on combatting the predatory and pervasive offshore illegal market that offers no responsible gaming measures, age verification or problem gambling resources.
We appreciate Representative Tonko’s interest and will continue to work to ensure a sustainable legal marketplace that puts consumer protections first.”
WASHINGTON, D.C. – The American Gaming Association (AGA) Tuesday held its first ever State Stakeholders Summit, convening industry experts and invested stakeholders to drive the evolving national debate on expanding legalized, regulated sports betting. Held at the Hall of States, the event focused on potential policy solutions for state and federal legislatures and regulatory bodies. Drawing upon critical guidance from gaming regulators and AGA policy principles, stakeholders discussed the need for sound policy that would enhance law enforcement resources and drive customers to a legal, regulated market.
Within the next 70 days, the U.S. Supreme Court will issue a ruling on Murphy v. NCAA, the state of New Jersey’s challenge to the Professional and Amateur Sports Protection Act (PASPA). The 1992 law, which largely outlawed sports betting outside of Nevada, has failed to offer sport or consumer protection. Rather, PASPA restricts state and federal economic benefits, exhausts law enforcement resources and perpetuates a thriving illegal sports betting market in the United States that AGA estimates to be in excess of $150 billion annually. Event participants included those who joined AGA in filing amicus briefs with the Supreme Court in support of New Jersey.
“This meeting was an opportunity to continue our longstanding dialogue about shutting down the illegal sports betting market with some of the most important stakeholders in the debate,” said AGA Senior Vice President of Public Affairs Sara Slane. “States are anticipating and are preparing to offer legal, regulated sports betting in a way that meets the needs of their constituents. The organizations represented are central to advancing effective and sensible sports betting laws and regulations, and enacting and enforcing these new rules.”
Participants included members of AGA’s Sports Betting Task Force, former and current gaming regulators, and representatives from the National Governors Association, Conference of Western Attorneys General, National Conference of State Legislatures, American Legislative Exchange Council, Fraternal Order of Police, Major County Sheriffs of America, National Association of Counties and the Council of State Chambers, among others.
The Stakeholder Summit preceded a meeting of AGA’s Public Policy Committee, which convenes biannually to discuss industry policy priorities and activities.
AGA will issue an after-action report outlining lessons learned from the Summit, and next steps for advancing sound sports betting policy that shuts down the illegal market.
About AGA: The American Gaming Association is the premier national trade group representing the $240 billion U.S. casino industry, which supports 1.7 million jobs in 40 states. AGA members include commercial and tribal casino operators, suppliers and other entities affiliated with the gaming industry. It is the mission of the AGA to achieve sound policies and regulations consistent with casino gaming’s modern appeal and vast economic contributions.
The AGA remains focused on stopping illegal gambling, elevating responsible gambling, and telling the industry’s story. Find details on these efforts and additional AGA updates below.
💥 ICYMI: G2E 2023 is 95 days away! Preview this year’s schedule and register today to join the global gaming industry from October 9-12 at The Venetian Expo.
Engaging Industry Stakeholders
The AGA continues to engage the broader gaming ecosystem, including regulators, policymakers and law enforcement, on combating the illegal market and advancing responsible gambling and advertising. These efforts have led the AGA team to several industry events in recent weeks, including:
- Speaking at the IAGA International Gaming Summit on the dangers of illegal gambling and how the U.S. industry is leading the fight against these operators.
- Testifying to the Indiana Gaming Commission on the legal gaming industry’s commitment to responsible gambling.
- Attending the North American Gaming Regulators Association Annual Meeting to educate regulators on the illegal market and industry efforts on responsible sports betting advertising.
- Presenting at the Attorney General Alliance Annual Meeting on “skill” games, offshore sites and “faux fantasy” operations, sharing specific actions state attorneys general can take to crack down on these illegal operators.
As I often say, whether it's combating illegal operators or building a sustainable legal sports betting market, our success will hinge on securing buy-in from the entire gaming ecosystem.
- AGA President and CEO Bill Miller
Five Numbers from AGA Q2 Research
AGA research released across Q2 2023 covered an array of industry topics. Here are five numbers to know.
- 85 percent of American adults agree with the Supreme Court’s decision to strike down the Professional and Amateur Sports Protection Act.
- Nearly nine in ten (88%) gaming equipment manufacturer CEOs expect sales of gaming units for replacement use to increase in the next three to six months.
- Commercial gaming generated $13.49 billion in direct gaming tax revenue paid to state and local governments in 2022, not including billions more paid in income, sales or other taxes.
- April 2023 marked the 26th consecutive month of annual growth with commercial gaming revenue reaching $22.06 billion through April, up 13.8 percent year over year.
- More than 6 in 10 (61%) of gaming industry employees are minorities, compared to 42 percent of the total U.S. workforce.
AGA in the News
The AGA continues to push back against false narratives about gaming and highlight the benefits of a legal market, our commitment to responsibility, and our contributions to communities. In June, these efforts resulted in several AGA opinion pieces being published.
- USA Today | NBA Finals will trigger a surge in sports betting. We need to help problem gamblers.
- St. Louis Post-Dispatch | Miller: Missouri’s top cop shouldn’t cop out on illegal gambling
- Deseret News | Opinion: Illegal sportsbooks are the real problem in sports gambling
Bonus Read: Congressional Gaming Caucus Co-Chair and Chief Deputy Whip Rep. Guy Reschenthaler (R-PA) also recently shared his thoughts on protecting legal betting markets in The Hill following the fifth anniversary of the Supreme Court’s decision to strike down PASPA.
One More Thing
As the 2023 legislative cycle comes to a close, the AGA’s interactive Legal Sports Betting Map reflects movement in North Carolina, Kentucky and Vermont.
- North Carolina legalized online wagering with an anticipated launch in the first half of 2024.
- Kentucky and Vermont became the 37th and 38th states respectively to legalize sports betting. Kentucky is targeting a late 2023 launch while Vermont plans for mobile-only wagering in early 2024.
Leading on
Anti-Money Laundering Compliance
As the leading voice of the gaming industry’s commitment to compliance, our members deploy best practices for anti-money laundering (AML) compliance. We work directly with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network as a member of the Bank Secrecy Act Advisory Group (BSAAG) and with law enforcement to weed out bad actors.
Best Practices for AML Compliance
To discourage illegal financial activity and safeguard the integrity of the gaming industry and the U.S. financial system, casino companies have developed effective risk-based programs that ensure compliance with the legal requirements of the federal Bank Secrecy Act (BSA).
The AGA Best Practices for AML Compliance guide — reviewed and revised by the country’s top compliance professionals — provides a resource for the gaming industry and law enforcement, guiding efforts to protect the industry and the broader financial system from money launderers and others involved in illegal activity.
Industry Advocacy
AGA President and CEO Bill Miller sent the following industry update on March 11, 2020.
Like many of you, the American Gaming Association (AGA) is paying close attention to the coronavirus (COVID-19) outbreak, which has created uncertainty for the gaming industry and economy broadly.
Last month, we led a deliberate and inclusive process with AGA members and through close consultation with the Macau and U.S. government made the decision to postpone G2E Asia to July 28-30, 2020. The Macau gaming market plays a vital role in the global gaming industry, and is essential to the interests of U.S. operators and suppliers. We will continue to support efforts as Macau returns to full capacity.
As COVID-19 impacts increasingly hit closer to home, we are communicating with administration (CDC, Office of the Vice President) and Congressional leaders, including the Congressional Gaming Caucus. In these ongoing discussions, we continue to reiterate the need for gaming’s inclusion in any economic stimulus being considered. We are also communicating back to policymakers the steps that our members are taking to ensure customer health and safety. We convened a call yesterday with more than 50 government relations representatives from AGA’s membership to gauge priorities in any stimulus action, and we will work diligently to preserve industry interests over the coming weeks and months.
We have engaged and will continue to engage other industry associations as the implications of this evolving health crisis continue to affect our part of the broader hospitality industry. I have personally been in direct, daily coordination with travel and hospitality industry association CEOs to make sure our voice is represented among the broader travel industry. Yesterday, the AGA joined those organizations to encourage Americans to follow expert advice and make fact-based decisions about traveling.
Because this is a rapidly evolving situation, we will share more frequent updates to help you stay informed on the latest efforts and resources available.
AGA President and CEO Bill Miller sent the following industry update on March 11, 2020.
Like many of you, the American Gaming Association (AGA) is paying close attention to the coronavirus (COVID-19) outbreak, which has created uncertainty for the gaming industry and economy broadly.
Last month, we led a deliberate and inclusive process with AGA members and through close consultation with the Macau and U.S. government made the decision to postpone G2E Asia to July 28-30, 2020. The Macau gaming market plays a vital role in the global gaming industry, and is essential to the interests of U.S. operators and suppliers. We will continue to support efforts as Macau returns to full capacity.
As COVID-19 impacts increasingly hit closer to home, we are communicating with administration (CDC, Office of the Vice President) and Congressional leaders, including the Congressional Gaming Caucus. In these ongoing discussions, we continue to reiterate the need for gaming’s inclusion in any economic stimulus being considered. We are also communicating back to policymakers the steps that our members are taking to ensure customer health and safety. We convened a call yesterday with more than 50 government relations representatives from AGA’s membership to gauge priorities in any stimulus action, and we will work diligently to preserve industry interests over the coming weeks and months.
We have engaged and will continue to engage other industry associations as the implications of this evolving health crisis continue to affect our part of the broader hospitality industry. I have personally been in direct, daily coordination with travel and hospitality industry association CEOs to make sure our voice is represented among the broader travel industry. Yesterday, the AGA joined those organizations to encourage Americans to follow expert advice and make fact-based decisions about traveling.
Because this is a rapidly evolving situation, we will share more frequent updates to help you stay informed on the latest efforts and resources available.
Washington, D.C. – American Gaming Association (AGA) Vice President of Government Relations Chris Cylke released the following statement in response to the Administration’s inclusion in its budget proposal of $120 million to restore the Yucca Mountain nuclear waste repository:
“AGA opposes any effort to revive Yucca Mountain as a repository and will work with the many concerned citizens, small-business operators and members of Congress to ensure that radioactive waste is never stored anywhere near the world’s premier tourist, convention and entertainment destination.
Yucca Mountain is located just 90 miles from Las Vegas, Nevada, which welcomed 42 million visitors last year. Over the past decade, the Greater Las Vegas area is one of the fastest growing in the U.S. with a population that now exceeds 2.1 million people according to an estimate from the U.S. Census Bureau. Any problems with the transport of nuclear waste to the site, or issues with its storage there, would bring potentially devastating consequences to the local, state and national economies.”
Background
In April 2017, AGA President and CEO Geoff Freeman sent a letter to the House Energy and Commerce Subcommittee on the Environment and the Economy, opposing the plan to reopen the Yucca Mountain Nuclear Waste Repository.
About AGA: The American Gaming Association is the premier national trade group representing the $240 billion U.S. casino industry, which supports 1.7 million jobs in 40 states. AGA members include commercial and tribal casino operators, suppliers and other entities affiliated with the gaming industry. It is the mission of the AGA to be the single most effective champion of the industry, relentlessly protecting against harmful and often misinformed public policies, and paving a path for growth, innovation and reinvestment.
Supporting the Legal Sports Betting Market
Since the federal ban was overturned in 2018, states and sovereign tribal nations have had the opportunity to establish frameworks for legal sports betting, which protect consumers and create tax benefits for local communities.
Embracing America’s Passion Through Effective Regulation
In May 2018, the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA), a decades-old federal law that prevented states other than Nevada from allowing legal, regulated wagers on collegiate and professional sports. This federal prohibition inadvertently created a massive illegal market — along with a myriad of associated public policy problems.
The Supreme Court’s 7-2 decision was a win for millions of Americans who seek to participate in sports wagering in a safe, legal and regulated manner. States and tribal nations can now set their own policies to legalize and regulate sports betting in an effective manner that protects consumers and creates tax benefits for local communities.
Since May 2018, sports betting is legal in 38 states and Washington, D.C., and has generated more than $2.45 billion in federal, state and local taxes.* This tax revenue funds infrastructure, education, responsible gaming education, problem gambling services, and other core priorities.
*Based on AGA’s compilation of state gaming regulator reporting and estimates of federal excise tax.
Repealing Federal Excise Tax on Sports Betting
The Internal Revenue Code currently imposes a federal excise tax of 0.25 percent on the amount of any legal sports wager with a sportsbook, as well as an additional $50 annual head tax for every employee engaged in receiving wagers for or on behalf of any legal sports betting operator. This tax was established in the 1950s, not as a revenue source, but rather as a tool for prosecuting illegal bookmaking operations that didn’t pay the tax.
Currently, this tax serves no dedicated purpose and represents an added operating cost to legal sportsbooks that illegal operators do not pay, further impeding customers’ move away from the predatory, illegal market to safe, regulated sports betting channels. Congress can help empower the success of a safe, regulated marketplace by repealing the federal excise tax that unnecessarily disadvantages legal sports betting operations.