Regulating a “Pariah” Industry: The Need for a Responsive Approach in Gambling Markets

Abstract

Gaming regulators are uniquely positioned state agents, who must consider contradictory goals in their day-today actions. They must protect the public (and maintain the legitimacy of government) but are also responsible for ensuring that the gaming industry provides needed revenue to the state. To that end, regulators are not only responsible for promoting the legitimacy of the government but also, to some extent, must consider how they can encourage the legitimization of a previously illegal behavior. Prior research has examined regulators' attempts to balance such "structural contradictions" through their licensing process, but little research has been done on regulatory responses to licensee violations. The present review suggests that a transparent and "responsive" regulatory response to such violations would benefit regulators, the industry, and the public. I review the contradictions inherent in regulating the gaming industry, describe the "Responsive Regulation" approach, and then detail how "Responsive Regulation" could uniquely benefit gaming. I conclude with a call for more collaboration between regulators, practitioners (including industry participants), and academics.