USA Law and Practice Contributed by: Chao Yu (Charles Yu) and Greg Pilarowski, Pillar Legal
• Advertising standards – gambling advertising must be factual, transparent, and socially responsible. Marketing may not mislead consumers, target minors or vulnerable persons, or suggest that gambling is a solution to financial or personal dif- ficulties. • Player-control tools – online and mobile operators are encouraged or required to offer features that allow players to set deposit, loss, or time limits, helping individuals manage their gaming behaviour. • Support and research funding – a portion of gam- ing revenue or operator contributions is often directed toward problem-gambling treatment, prevention, and research initiatives. • Employee training – gaming personnel must receive regular training to identify and respond appropriately to signs of problem gambling and to manage self-exclusion or intervention procedures. • Alcohol and conduct policies – operators are expected to limit alcohol service on gaming floors and to refuse gambling access to visibly intoxi- cated patrons. 7.2 Gambling Management Tools See 7.1 RG Requirements . In the USA, AML regulations are generally implement- ed at the federal level. The key law is the Bank Secrecy Act of 1970 (the BSA), and other relevant laws include the Money Laundering Control Act of 1986, the USA Patriot Act of 2021, and the Anti-Money Laundering Act of 2020. State-level AML laws and regulations generally work in conjunction with these federal laws. The Financial Crimes Enforcement Network (Fin- CEN), a bureau of the US Department of the Treasury, 8. Anti-Money Laundering (AML) 8.1 AML Legislation enforces AML obligations. 8.2 AML Requirements Casinos are treated as “financial institutions” under the BSA, and thus are required to:
• file currency transaction reports for cash transac- tions exceeding USD10,000 as a daily aggregate amount; • submit suspicious activity reports for unusual transactions; • maintain records for certain financial transactions; • establish programmes to verify customers’ identi- ties and monitor their transactions; and • report foreign bank accounts with balances exceeding USD10,000 (31 CFR Part 1021). There is no single federal authority dedicated to regu- lating gambling advertising in the USA. Oversight is shared among multiple agencies and state regulators, depending on the type of gambling and the nature of the advertisement. At the federal level, 18 US Code, Section 1302 pro- hibits “any newspaper, circular, pamphlet, or publica- tion of any kind containing any advertisement of any lottery, gift enterprise, or scheme of any kind offer- ing prizes dependent in whole or in part upon lot or chance” (“Publication Advertising Restrictions”), and Section 1304 prohibits broadcasting of “any adver- tisement of or information concerning any lottery, gift enterprise, or similar scheme, offering prizes depend- ent in whole or in part upon lot or chance” (“Broad- casting Advertising Restrictions”), except for a state- run lottery, tribal gaming, licensed casinos in Nevada, sports betting where legal, and any form of gambling that it legal in the jurisdiction being advertised (18 US Code, Section 1307). 9. Advertising 9.1 Regulatory/Supervisory Agency Additionally, the FTC, particularly its Division of Adver- tising Practices, enforces federal “truth-in-advertising” laws. While it does not regulate gambling advertising exclusively, it covers deceptive or unfair advertising practices by gambling operators and promotions. At the state level, each state containing regulated gambling has a regulator with authority over advertis- ing within its jurisdiction (see details in 9.3 Key Legal, Regulatory and Licensing Provisions ).
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