Having spent the past couple of You Asked! Articles discussing how regulations put limits on what casinos and game makers can do, here’s a variation of a common counterpoint to some of the things we point out (another great example of a topic many will raise is that casinos would rather pay the fines than follow the various regulations).
You say the “regulators” keep the casinos in check. I wonder if state “regulators” are smart enough to “regulate” the casinos?
Shaf-1 in our comments section
Yes, the regulators are smart enough. Gaming as an industry is one that has been highly regulated for decades, and the rules, and processes that go with them, are elaborate, detailed and multi-leveled.
In fact, the amount of red tape is sufficient that Nevada’s current lead regulator has been working to balance a well-regulated system with changes that can improve efficiency when it comes to technological advances, which can be hampered when the regulations are so hard coded to previous era technology. As he describes it, regulators should work “at the speed of business.”
Regulators set the rules, but there’s multiple rounds of people involved in following them and checking them. The game makers develop games that will meet the regulatory requirements of the markets they sell to. Independent third-party labs test those games to make sure they follow the rules. Both the game makers and the labs are licensed by the state to be able to operate there.
The key people who work for gaming companies (like casinos and slot makers) are also licensed in the states where they work or have a leadership role, going through a thorough background check in the process..
This is done in every jurisdiction, commercial and tribal. The Forest County Potawatomi Gaming Commission recently looked into Ainsworth after press covered recent investigations into the company and its parent, Novomatic.
If a company was found to be purposefully violating the regulations, which occasionally we get players loving to claim is happening at a casino (they’d rather pay the fines is often the claim), their ability to do business in any jurisdiction would be in doubt.
And with every slot machine on the floor generally generating hundreds of dollars a day in revenue for the casino, there’s no need for them to do anything but set them up and let them do what they’re designed to do. The incremental money they might make by doing something untoward isn’t worth it to put at risk the often hundreds of millions to billions of dollars these companies make.
When regulators do find issues, they are flagged and addressed. When we reach out to regulators, which we have on a few occasions, the regulators confirm no set pattern of casinos attempting to violate the regulations to “just pay the fines,” which itself is an odd notion to suggest because their ability to offer gaming could be revoked for a payback setting that would scare players away anyway.
So no, we don’t think regulators are outgunned. They’re an important part of a complex, highly safeguarded process that ensures fairness to players. But as we like to say, if you personally don’t trust it, we certainly hope you’re not playing in casinos and giving them your money despite your reservations. There are other ways to spend your entertainment dollar you can feel better about.
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