Even though virtually every slot machine in the United States uses TITO technology, some jurisdictions still have rules stipulating how coin hoppers must operate.
That could be more than an amusing anachronism. It also could indicate an opportunity to update regulations to address the quickly evolving worlds of legal and illegal gambling.
“It starts a conversation of ‘here’s a new aspect of gaming, let’s start looking into that. And by the way, there are other aspects of the existing gaming that are getting more and more modern. We should look at that, too,’” said Mike Robbins, senior gaming technology advisor for Gaming Laboratories International.
Robbins spoke Wednesday at a GLI Regulators Seminar discussion titled “Are Your Rules Too Old?” Ohio State Rep. Bride Rose Sweeney and Paul Resch, director of gaming operations for the Pennsylvania Gaming Control Board, were also on the panel. Steve May, GLI’s senior executive for government affairs, moderated. The panel discussion was in conjunction with the start of the summer meeting of the National Council of Legislators from Gaming States at River Casino Pittsburgh.
Noting that this year is the 20th anniversary of the legalization of slot machines in Pennsylvania, Resch said the state has become a leader in land-based casinos, sports wagering, and igaming. The state’s first online casino site opened in 2019 and Resch said the industry is growing about 25 percent a year. “We’ve adapted and evolved our regulations to allow for these new products and this growth in the industry,” he said. Regulators from Pennsylvania, Michigan, New Jersey, and other states recently formed an igaming workgroup to “harmonize” rules, he said.
He called account security and player verification essential to igaming’s growth beyond the current seven states. “We’ve seen instances of gaming fraud, identity theft, and credit-card theft,” he said. The Pennsylvania Gaming Control Board has put 30 people on the igaming involuntary exclusion list for such offenses, including 11 added last month.
As another example of looking toward the future, Resch said the legislature requires the Gaming Control Board to write an annual report about issues such as illegal gambling, potential threats to the gaming industry, and emerging technologies. This year’s report looks at artificial intelligence, cashless gaming, and igaming’s unique blending of slots and table games. That’s key for the state, because operators pay a 54 percent tax on gross slot revenue, compared with 16 percent on table-game revenue. “It’s getting increasingly difficult to distinguish a slot from a table game in the online space, because of the creativity that can be brought to bear for those games,” Resch said.
Ohio launched legal online and in-person sports betting in January 2023 and Sweeney said the decision to approve it was made easier by legislators being able to gauge the experiences of other states. As for legalizing igaming, “We can either accept it or not that people are going to game on the phones,” she said. “We can bring it to the light and regulate it.” As with sports betting, Ohio officials can look at the experiences of states with approved online lottery sales and casinos. “We can also do pilot programs that are temporary,” she added.
Operators can help regulators take a look ahead. Resch said a casino compliance officer told him this week that operators of Pennsylvania’s 17 casinos are crafting potential legislation governing skill games. In addition, the operators plan to outline what modernizations they would like to see in existing regulations.
