Regulated gaming is booming in the United States. This is particularly true of newer forms of gambling, such as skill games, fantasy sports, and social casino games played on the internet and mobile applications. In fact, gaming is now legal in some form in 48 out of 50 states and the District of Columbia, and 36 states have legalized sports gambling since 2018. Gaming revenues in 2021 amounted to $53 billion with the American Gaming Association (AGA) reporting that commercial gaming revenue for Q1 2023 reached $16.6 billion.
This growth in remote gaming presents unique compliance challenges that may be exacerbated by the absence of face-to-face customer interactions, including new and enhanced money laundering risks and social responsibility obligations. To date, the web-based and app-based gaming sector has not been subject to significant enforcement by U.S. federal or state criminal or regulatory authorities. But, as rapid expansion of this sector of the gaming market continues, we should expect that criminal and regulatory scrutiny will also increase.