AGA: How gaming operators can build a foundation of trust
The American Gaming Association is a regular Global Gaming Insider contributor. In this issue, Mike Vanaki, Director, Government Relations, discusses why state-regulated and Tribal gaming matters
The success of the legal gaming industry in the US rests on a clear and deliberate framework: state and Tribal regulation. That system – built over decades through legislation and enforcement – has created a legal marketplace that protects consumers, supports communities and holds operators accountable. As gaming continues to grow and evolve, preserving state and Tribal authority is not just important – it is essential.
State and Tribal regulators are closest to the communities they serve. They understand local priorities, economic realities and public expectations, and they are best positioned to oversee gaming in a way that balances growth with responsibility. This approach has allowed gaming to expand thoughtfully, under rules tailored to each jurisdiction rather than a one-size-fits-all mandate.
That oversight is rigorous and ongoing. Licensed operators must comply with strict requirements covering age verification, geolocation, anti-money laundering controls, game integrity, as well as responsible gaming programs – which include employee training, consumer education and mechanisms that allow players to set limits on their play. Compliance is not a box to check – it is a continuous obligation.
Regulators audit operators, monitor activity in real time, and enforce the law when standards are not met. Nationwide, more than 8,000 state and Tribal regulators are responsible for ensuring the integrity of the legal gaming market and the safeguards they uphold are a key reason gaming has become a trusted, mainstream form of entertainment for millions of Americans.
This framework has delivered tangible results. In 2024, commercial gaming generated more than $72bn in revenue and nearly $16bn in state and local tax contributions. Those dollars support education, infrastructure, public safety and essential services in communities across the country. The industry also supports approximately 1.8 million American jobs, spanning gaming operations, hospitality, tourism, manufacturing and technology.
For Tribal nations, gaming revenue plays an especially vital role. Tribal gaming supports hundreds of thousands of jobs and serves as a primary economic engine for many Tribes, funding healthcare, education, housing, and cultural preservation. Tribal gaming represents sovereignty in action – governed by Tribal governments with support from federal partners and grounded in accountability to tribal communities.
The contrast with illegal or unregulated gaming could not be clearer. Illegal operators operate outside state and Tribal rules, offer no meaningful consumer protections and avoid oversight entirely. They do not verify age, do not provide responsible gaming tools, and do not answer to regulators. Many are based offshore, beyond the reach of US enforcement, leaving consumers exposed to fraud and abuse with little to no recourse.
Illegal gaming also carries real consequences for states and Tribes. Americans wager hundreds of billions of dollars annually in illegal or unregulated markets, draining tens of billions in potential tax revenue from jurisdictions that rely on gaming to fund public priorities. When gaming activity moves outside established frameworks, communities lose resources – and consumers lose protection.
As new products and platforms mimicking gaming or claiming to be gaming emerge, the importance of state and Tribal authority only grows. Innovation works best within clear legal boundaries that preserve trust and accountability. Prediction markets offering sports event contracts are a perfect example as they clearly bypass state laws to offer sports bets – regardless of what they call it. When companies attempt to bypass established regulatory frameworks or exploit legal gray areas, it undermines consumer confidence and destabilizes the broader marketplace.
Protecting state-regulated and Tribal gaming is not about resisting change. It is about ensuring that change happens responsibly, under rules designed to protect the public and uphold integrity. Policymakers, regulators and industry leaders must continue working together to reinforce these frameworks, close loopholes that allow illegal activity to flourish, and ensure that all gaming operates under the same standards.
Legal gaming did not earn public trust overnight. It earned it through strong regulation, effective enforcement and a shared commitment to consumer protection. Preserving state and Tribal authority is the foundation of that trust – and the key to ensuring gaming continues to deliver economic and social benefits for years to come.