The American Gaming Association (AGA) is the premier national trade group representing the $261 billion U.S. casino industry. The AGA released new Payments Modernization Policy Principles that provide a framework for regulatory flexibility allowing digital payments on the casino floor. Could StakeHaul be part of a new era of gambling across the country?
The principles are as follows:
- Equip customers with more tools to wager responsibly.
- Give customers payment choice and convenience.
- Ensure state laws enable a flexible regulatory approach, capable of keeping pace with evolving forms of digital payments.
- Address heightened customer public health concerns.
- Provide customers confidence in digital payment security.
- Create a uniform regulatory environment for casino operators, suppliers, and regulators.
- Empower law enforcement to better identify offenders through digital payment analysis.
According to their press release:
Recent AGA research found that 59 percent of past-year casino visitors are less likely to use cash in their everyday lives because of the COVID-19 pandemic. This translates to customer preferences on the casino floor, as more than half (54%) indicate that they would be very likely to utilize a digital or contactless payment option when they gamble.
We have a few thoughts on these principles. The third and sixth principles are similar in nature, so we’ll start there.
In our experience, the regulatory environment has already been a sore spot for anyone offering betting on mobile. The inconsistency of state gambling laws is costly to new startups trying to find a place in the market. They range from legal research, licensing costs for legal wagering, and, worst case, costs for legal defense.
For example, poker remains technically illegal, both online and live. However, poker room operators have found loopholes and opened private poker clubs throughout Texas.
We believe creating a legal and consistent legal framework that gives users payment choice and flexibility is of paramount importance. There should also be flexible measures taken to fight the potential of money laundering.
As far as the fifth principle, could the future in digital payment security involve blockchain technology? With the advancement of smart contracts and KYC technology, absolutely.
Imagine a future where all you need is your phone and a digital wallet. You’re able to scan your digital wallet in a casino to quickly fund your account. Blockchain technology has the capability to scale these transactions at minimal cost. Also, with all transactions on an open ledger, it will take minimal time to trace where transactions came from.
In conclusion, we fully support these principles. We encourage local and state governments, as well as providers, to work together to create the best user experiences. We aim to keep these principles in mind when building the next version of our award winning platform.