Recent findings from the American Gaming Association (AGA) reveal a dramatic rise in responsible gaming (RG) investments across the gaming industry. The research highlights that industry spending on RG programs has soared to $471.8 million annually, reflecting a significant 72% increase from $275 million in 2017. This rapid growth outpaces the increase in gaming revenues over the same period and underscores the sector’s expanding commitment to responsible gaming initiatives.
The study, conducted by a major international accounting firm, provides insight into how gaming companies are allocating these funds. Key areas of investment include customer service interactions, the development of responsible gaming programs, consumer education on responsible gaming, and research into problem gambling.
Key Areas of Investment
The research identified several critical areas where responsible gaming investments have been focused:
- Customer Service Interactions: $135.4 million
- Development and Maintenance of Responsible Gaming Programs: $122.4 million
- Consumer-Facing Responsible Gaming Education: $107.7 million
- Responsible Gaming Research and Support for Non-Profit RG Organizations: $31.8 million
- Problem Gambling Supportive Services: $26.1 million
Joe Maloney, Senior Vice President of Strategic Communications at the AGA, emphasized the industry’s proactive efforts, stating, “This impactful rise in RG spending demonstrates the legal industry’s dedication to fostering a safe and informed gaming environment. Beyond the considerable taxes gaming companies contribute to fund responsible gaming and problem gambling resources, the industry also proactively invests hundreds of millions of dollars more to ensure our customers have the tools, knowledge, and safeguards to play responsibly.”
Steady Commitment Amid Growth
The significant rise in RG spending has come during a period of growth and expansion for the gaming industry, particularly in the United States, where sports betting and iGaming have gained rapid legal footing in various states since the 2018 repeal of the Professional and Amateur Sports Protection Act (PASPA). This shift has led to heightened regulatory scrutiny and increased demand for responsible gaming measures to ensure that consumers can engage in gaming activities safely and responsibly.
In response, gaming operators have increasingly channeled resources into consumer education and responsible gaming infrastructure. The AGA noted that investments in RG have outpaced industry revenue growth over the past seven years, underscoring a strong commitment to safety and player protection.
Ongoing Initiatives and Research
September’s Responsible Gaming Education Month (RGEM) 2024 provided an opportunity for the gaming industry to showcase its dedication to responsible gaming practices. During RGEM, stakeholders launched various initiatives, campaigns, and public outreach programs to increase awareness of responsible gaming.
Additionally, the AGA introduced a new tool to enhance these efforts: the Responsible Gaming Intervention Effectiveness Scale. This innovative research-based tool is designed to help academics, industry professionals, and policymakers evaluate the effectiveness of responsible gaming messages. Maloney highlighted the significance of these ongoing efforts, remarking, “Our industry’s commitment to responsibility once again made RGEM a resounding success. We look forward to seeing the work done throughout this past month provide a springboard for continued advancements in responsible gaming in the months and years to come.”
Future of Responsible Gaming
As the gaming industry continues to expand across the United States, more jurisdictions are adopting frameworks for responsible gaming. In the U.S., most legal gambling jurisdictions require that tax revenues be set aside specifically for responsible gaming and problem gambling programs, which may include treatment services, educational campaigns, and other supportive initiatives.
However, with the current state-by-state approach to responsible gaming, challenges remain in creating a unified national framework. Some federal lawmakers have introduced bills aimed at developing comprehensive RG policies. For instance, the SAFE Bet Act and the GRIT Act propose allocating federal gambling excise tax funds to RG programs and tightening regulations on responsible gaming advertising.
As responsible gaming becomes more of a priority in the gaming sector, both industry leaders and regulators are seeking ways to balance industry growth with player protection. The AGA’s study highlights how industry-wide investments are helping to achieve that balance.
Sources:
Industry Investments in Responsible Gaming Reach New High of $472 Million Annually, AGA Study Shows – americangaming.org, September 26, 2024.