Top 3 Takeaways from North American Gaming Regulators Association’s Annual Training

By: Abbey Block

Last week, members of the gaming industry from all corners of the country traveled to Nashville, Tennessee to attend the North American Gaming Regulators Association’s (“NAGRA”) Annual Training and Education Conference. The conference featured panels and presentations from leaders in the gaming industry, including regulators, responsible gaming advocates, legislators, and technological experts. For many regulators, the NAGRA conference offers an opportunity to gain perspective regarding the regulation of legalized gaming outside of their own jurisdiction, including the most common challenges and most impactful developments.

I was fortunate enough to be provided with the opportunity to attend the NAGRA conference. During my time in Nashville, I attended several presentations and panels (scribbling dozens of pages of notes in the process), indulged in delicious Tennessee barbecue, and hosted my own discussion regarding legal trends in the gaming industry. My presentation centered around recent litigation and regulatory developments that I have observed through my work with my gaming clients. The discussion reviewed several instructive “case studies” involving industry members’ missteps with the goal of providing insight about the legal lessons that can be learned from these mistakes and the steps that can be taken to prevent them in the future.

I could write dozens of paragraphs about what I learned during the conference, but for the sake of efficiency, I’ve narrowed it down to three key points.

Times are Changing – Everyone at the conference recognized that the industry is rapidly evolving, and that regulators, operators, and suppliers have no choice but to adapt. For example, several panelists spoke about how protocols originally designed for brick-and -mortar casinos are not necessarily applicable or appropriate in the online context when dealing with emerging technology such as artificial intelligence, or the adoption of cryptocurrency. To this end, several presenters and panelists spoke about the new and innovative technological tools that have been or are in the process of being developed for operators and regulators. For example, vendors are offering tools that can automate everything from licensing applications to gameplay monitoring for the real-time identification of potentially problematic player behavior. One panelist noted that some operators and regulators are reluctant to adopt these tools, assuming that they are either too expensive, too cumbersome, or too new to be worthwhile. The response? If not now, when? These technological innovations are only going to continue to advance, and a refusal to adapt will result in being left behind.

Open Dialogue – Another theme that emerged was the importance of ensuring an open dialogue and information sharing among all members of the gaming industry, including regulators, payment processors, law makers, vendors, operators, and attorneys. Only through continued conversation and collaboration can stakeholders effectively and consistently address the challenges and questions that arise.  One panel discussed the importance of in-person round-table discussions for regulators and operators in order to initiate an ongoing dialogue and build a relationship of trust that can be relied upon when issues arise. Another hot topic of conversation was the harassment of both college and professional athletes, which has significantly increased in light of legalized sports wagering. While certain states have taken steps to pass legislation criminalizing this particular form of aggressive, verbal and digital harassment, advocates recognize that criminal prosecution is not always easy, effective, or timely. Moreover, the First Amendment inevitably imposes certain restrictions about what type of speech can and cannot be punished by the government. Discussion revealed that perhaps the more effective solution would be to facilitate information-sharing between college athletic administrators (i.e., those assisting the athletes being harassed) gaming regulators, and operators. Through this collaboration, the worst offenders could be identified and banned from sports wagering platforms state-wide, which would require a much lower showing of evidentiary proof than criminal prosecution. Put simply, information sharing  amongst stakeholders can be a key tool to develop effective strategies to tackle imminent issues. As one panelist put it – innovation is important, but if each stakeholder innovates in a silo, progress will be stifled.

Regulatory Frameworks Must be Developed in Light of Emerging Illegal Markets –  Finally, and perhaps to be expected at a conference of regulators, there was significant discussion regarding the illegal off-shore market. As an initial matter, each state regulatory body has its own approach to combating illegal gambling. While some regulatory agencies adopt an aggressive prosecutorial approach, others seek to combat off-shore activities through investigatory tools, fines, and, if necessary, eventual referral to the attorney general’s office. Making matters more challenging, many of the criminal laws historically relied upon to prosecute illegal gambling are outdated and inapplicable in the digital age. Given these circumstances, most attendees agreed that there is a need for a new approach to fighting against the off-shore market, which is ever-growing in popularity and generating more revenue than ever. It seems unlikely that regulators will ever cease in the efforts to prosecute or shut down off-shore platforms, but there is growing recognition that change from within the industry itself may be an even more effective tactic in combating the illegal industry. To this end, it was recognized that regulators and operators should strive to make the regulated market more accessible, more appealing, and more secure in an effort to shepherd consumers away from the black market and toward the regulated industry.

I am grateful for the opportunity to have attended and presented at the NAGRA conference. Throughout the week, I found myself surrounded by dedicated stakeholders, who are passionate about the growth of regulated gambling and excited for what the future holds. If current trends continue, I’m sure that next year’s conference will include even deeper and more nuanced conversations about the evolution of AI, the modernization of existing systems, and the expansion of regulated gaming.