Summary: Unclaimed property laws apply to all businesses, including gaming, sports betting, games of skill, randomized reward games, and lottery operators. These laws govern assets that remain unclaimed by their rightful owners for a specified dormancy period. For gaming companies, this often includes inactive player accounts, uncashed winnings, promotional credits, and digital wallets. Failure to comply can result in penalties, interest assessments, and audits, which are becoming more frequent as states seek additional revenue streams.
Unclaimed property obligations are becoming a top‑of‑mind issue for gaming, sports betting, games of skill, randomized reward games, and lottery operators. Whenever a business holds funds or value for someone else, and contact with that person is lost over time, an obligation eventually arises. This is especially common in gaming, where players often come and go, accounts become inactive, and digital balances accumulate quietly in the background.
Common Sources of Liability
Dormant online player accounts
Dormant online player accounts are the most common source of unclaimed property in gaming. Players deposit money, place bets, win prizes, or earn rewards, and then leave small balances in their accounts. Many don’t return, often because they moved, forgot their login information, or simply shifted to another platform. In most states, when those balances sit untouched for three to five years, they become reportable.
For sports betting accounts, some states may even require operators to close inactive accounts after three years and remit balances to the state.
These accounts rarely involve large sums. Most of those leftover balances can be under $50, sometimes just a dollar or two, but with tens of thousands of players, even small balances can create significant reporting responsibilities.
Digital currencies
Another growing source of unclaimed property is digital currency, and not just cryptocurrency, but any digital value players can accumulate, store, or exchange. This includes tokens, points, wallet balances, or platform‑specific currencies that can later be redeemed for cash, gifts, or gift cards. Anytime a company holds value on behalf of a player, even if it starts inside a game, it becomes relevant for unclaimed property.
Other sources of liability
If a player can earn it, store it, or redeem it, gaming companies must track it closely. These are other common scenarios that happen in both physical and hybrid gaming environments where unclaimed property liabilities may arise:
- Uncashed slot vouchers and jackpots that never make it to the cashier window. In certain jurisdictions, brick-and-mortar casinos must track and report these as unclaimed property.
- Unredeemed casino chips when players walk away from the table.
- Loyalty points and reward balances that function like stored value.
- Credits and gift cards tied to promotions that may be considered escheatable unless exempt under state law. The type of gift card (e.g., closed or open loop) is also important when accounting for unclaimed property liabilities.
Regulatory Trends to Watch
While regulations vary widely by state, the direction is consistent: more clarity, more coverage, and more enforcement.
RUUPA
The Revised Uniform Unclaimed Property Act (RUUPA) provides an updated framework for handling unclaimed property, including clearer rules around digital assets. Companies operating in multiple states should keep a close eye on whether their states have adopted any part of the uniform act. Once a state adopts it, companies have new responsibilities they can’t ignore.
Shorter dormancy periods
While most dormancy triggers remain at three years, some states propose shorter periods for certain gaming products. For example, Maine explored a one‑year dormancy period for sports wagering accounts. While changes like this aren’t common, they signal that states are paying closer attention to gaming activity.
Remember that dormancy periods and reporting requirements vary widely, so it is best practice review updates annually.
Expanded property types
With the rise of digital wallets and cross‑platform accounts, virtual currencies are now explicitly included in many state statutes. Liquidation can even be required depending on the state. As gaming companies expand into new markets (e.g., sports betting, online casinos, mobile apps, loyalty ecosystems), the lines between gaming value and stored value start to blur. States have begun to respond by tightening their definitions and expanding what qualifies as unclaimed property.
Best Practices for Unclaimed Property Compliance
1. Build a consistent, multistate compliance program.
The importance of developing a formal, repeatable, and applicable compliance program across all states where a gaming company operates cannot be overstated. Even strong operational controls won’t eliminate unclaimed property entirely. Thus, companies need a system that can track, report, and validate obligations every year.
Consider looking into Voluntary Disclosure Agreements (VDAs) as part of compliance, as these can help reduce penalties for past-due filings.
2. Strengthen customer contact.
Unclaimed property only exists when a company loses touch with a player. Any action that maintains contact, such as an email confirmation, a login, a message delivered successfully, can prevent balances from becoming reportable. A simple nudge could save a player from losing their funds, and the gaming company from unclaimed property obligations.
3. Reach out to players early and often.
Proactive outreach can significantly reduce exposure. For accounts nearing dormancy, sending reminders long before the legal due diligence window begins can be an option. This not only protects the player’s funds but also builds trust and boosts reengagement.
4. Build effective internal controls to centralize tracking.
Robust accounting processes, especially around player balances, vouchers, and reward systems, should be in place. Consolidate data across departments to capture all potential unclaimed property sources and liabilities. When data is scattered across platforms, inconsistencies are inevitable. Consolidation and clear documentation help reduce reporting errors and risk during an audit.
5. Plan for digital assets now.
Even if a company doesn’t currently deal with digital currency or complex rewards, leaders must look ahead. Many new gaming platforms allow players to earn, store, or redeem value in innovative ways. If the value lives in an account and can eventually be exchanged, you can assume it’s going to be impacted by state unclaimed property laws.
Final Thoughts
Unclaimed property compliance is part of what it means to run a responsible gaming operation. It protects your business from costly audits and penalties. With gaming, sports betting, and lottery operations expanding across jurisdictions, proactive planning is essential. It is always best to get into compliance as soon as possible to reduce the possibility of and be prepared for a potential unclaimed property audit.
Small balances add up, technology evolves, state rules continue to evolve, and companies fall out of compliance without realizing it. Even foreign‑domiciled companies can still be considered a “holder” under state laws, as state unclaimed property laws tend to focus on where the property owner is located, and whether the holder has sufficient U.S. contacts. The best approach is proactive, structured, and player‑focused. When companies maintain regular contact, track activity carefully, and build a reliable compliance program, they minimize risk and safeguard the player experience.
Account for Anything™ with Aprio as your trusted compliance partner. Our Unclaimed Property & Escheatment Services team provides comprehensive support for all industry types. We streamline unclaimed property compliance by bringing together reporting, due diligence, audit defense, and voluntary disclosures into one coordinated program. With deep, multistate experience and guidance from experienced advisors, we work alongside you to build an end-to-end strategy that keeps you compliant and confident for the future.
