The nation’s leading gaming industry advocacy group was “well positioned” within the second Trump administration and remains optimistic it could work with federal officials to reach its long-standing policy goals, organization leaders reaffirmed Wednesday.
Speaking at the American Gaming Association’s annual “State of the Industry” address, AGA president Bill Miller said he was encouraged by Trump’s early outreach to gaming stakeholders. Trump, a former casino owner, and fellow Republicans in the GOP-controlled Congress could help the regulated gaming stakeholders in their ongoing crackdown attempts against unlicensed operators, Miller said in prepared remarks.
Miller cited Trump’s visit to Circa Resort & Casino in Las Vegas early in his second term as a strong backing of the gaming industry.
“That event so early in his administration is a testament to our positive role in the economy and it served a critical opportunity for us to share with the president and his team our top priorities in a big year ahead for U.S. tax policy,” Miller said.
Miller also lauded Trump for his support for the gaming industry during the COVID-19 pandemic in his term, which ended in 2021.
Combatting unlicensed gaming
Miller’s comments come as the AGA looks to work with the Trump Administration and Congress to combat unlicensed gaming machines and unregulated offshore digital gaming sites.
As commercial gaming continues to set revenue records each year since the pandemic, hitting an all-time high $72 billion in 2024, so too has the unregulated industry. Miller said Wednesday there are more than 500,000 illegal gaming machines at truck stops and other businesses across the country.
The AGA estimates offshore gaming sites accept roughly $400 billion in bets annually, which is about double the combined handle of the regulated sports betting and iGaming industry
— Ryan Butler (@ButlerBets) February 19, 2025
Miller estimated that these machines, which many customers confused with legal options, accepted more than $100 billion in bets last year, all untaxed.
The digital gaming industry also faces challenges from thousands of unregulated digital casinos and sportsbooks. Miller called out sweepstake sites that claim not to violate gambling laws but still function like digital casinos, also without paying requisite taxes or offering consumer protections.
The AGA estimates offshore operators draw in $402 billion in illegal bets annually, denying more than $4 billion in tax revenue and costing the legal gaming industry over $17.3 billion in annual revenue.
“The illegal market offers none of these benefits to those local communities,” Miller said. “They build nothing of lasting economic value and undermine both the industry's integrity and the community's well-being.”
These in-person and digital gaming options also directly compete with the taxed, regulated legal gaming industry which is put at a competitive disadvantage by these machines and sites.
Miller’s comments Wednesday are the latest in a so far largely unsuccessful multi-year push by the AGA and other regulated gaming stakeholders for federal intervention against these gaming machines and sites. Though several states have had some success passing laws and regulations to eliminate the in-person terminals as well as forcing out offshore game sites, the regulated industry is still looking for federal enforcement and support.
Miller said his organization was working to “educate” members in the new GOP-controlled Congress. The AGA president said he was hopeful lawmakers could work with the Trump Administration and the Justice Department to crack down on these unregulated gaming providers.
“Many political leaders that play a key role in shaping gaming's operating environment don't know all the facts and still labor under longstanding misconceptions,” Miller said.
Other legislative priorities
Miller also reaffirmed the AGA’s push for its two long-stalled federal priorities.
The gaming industry has tried for decades to repeal a federal excise tax on all sports bets placed nationwide. Nevada Democratic Rep. Dina Titus, who represents Las Vegas in the House, as well as Republican Pennsylvania Rep. Guy Reschenthaler this week reintroduced legislation to repeal the tax, which imposes a 0.25% fee on the gross amount bet on each wager.
The tax was enacted in 1951 to combat illegal bookmakers. Titus, in a statement announcing the latest repeal effort, said the IRS “doesn’t know” where the revenue from the tax is allocated.
“It makes no sense to give the illegal market an edge over legal sportsbooks with a tax the federal government does not even track,” Titus wrote Tuesday.
The AGA, Titus, and Reschenthaler are also working to double the slot winning tax threshold from $1,200 to $5,000 with periodic increases tied to inflation. Any jackpot over $1,200 requires the casino manager to pause the machine and give the player a tax form, which proponents of the repeal argue is an unfair regulatory burden.
Both proposals have lingered in Congress for years. Speaking to a gaming industry conference in 2024, Titus said the legislative efforts have been bogged down as Congress tackles other priorities. Titus also said some lawmakers are unwilling to remove a revenue source, even negligible taxes from sportsbooks and slot machines.
