AGA's CEO at G2E: "More Americans view gaming favorably than ever before"

In the American Gaming Association’s annual State of the Industry address Tuesday, which opened the Virtual Global Gaming Expo (G2E) 2020, AGA President and CEO Bill Miller outlined three reasons for optimism that gaming will rebound to pre-pandemic historic highs.

First, he pointed to new AGA research showing that more Americans view gaming positively than ever before as evidence of a strong foundation for the industry’s recovery. Fifty percent of American adults have a favorable impression of the casino industry, up five points in two years. Additionally, 9 in 10 (89%) adults view gambling as an acceptable form of entertainment, according to AGA’s American Attitudes survey fielded last month. Also, 69% believe the casino industry has a positive impact on the national economy, and 63% believe gaming provides high quality jobs. “Gaming’s continued innovation, coupled with our deep-rooted culture of compliance, have our industry on solid ground as we continue our recovery,” Miller said. 

“We have built this support over many decades,” Miller added. “As gaming has grown from two states in 1978 to 44 states today, more and more Americans have gotten to know us…They recognize the positive impact we deliver: The jobs we support; the small businesses we sustain; and the tax revenue we contribute…These are the reasons Americans have embraced gaming and they will fuel gaming’s recovery.”

The other two reasons for optimism are the fact that “gaming continually demonstrates its resilience and adaptability,” —which he illustrated with casino operators’ aid during Hurricane Katrina, Wynn Resorts’ upcoming on-site lab to deploy and rapidly process thousands of tests, among others—; and that the gaming industry is “united,” pointing to the CARES Act, eventually extended to the sector.

In addition, Miller highlighted AGA’s three priorities to unite the industry and aid gaming’s recovery. Working alongside the Congressional Gaming Caucus to advance the industry’s legislative goals, including further COVID-19 economic assistance, tax relief, and liability protections; advancing payments modernization to accelerate gaming’s modernization, help limit the spread of COVID-19, and give consumers new tools to gamble responsibly; and supporting the expansion of legal, regulated sports betting through responsible gaming and strong regulatory frameworks, considered essential to driving out the illegal marketplace. “States must create an operating environment that allows regulated sportsbooks to offer a competitive alternative to illegal operators. That means keeping tax rates low and allowing conveniences like intrastate mobile and online betting that fans prefer,” he said.

As for payments modernization, Miller noted that regulators in Nevada and Pennsylvania recently approved new rules to permit digital payments in their casinos. “We anticipate movement soon in New Jersey, Indiana, and Iowa. And tribal casinos like Hard Rock and San Manuel are already successfully using digital payment technologies,” he said. “Every day, I’m seeing suppliers announce new, innovative payments products. Station Casinos launched chip and pin debit solutions through ACS Play On at all their Nevada properties.  Gaming leaders—like Konami, Everi, IGT—have all rolled out new digital payments products. Several operators will soon deploy digital wallet programs in Indiana, Pennsylvania, and Nevada.”

This year marks the 25th anniversary of the AGA. “While COVID-19 may have shifted our plans, we never lost our focus. If anything, the pandemic has elevated AGA’s role as the leading advocate for the American gaming industry. No matter how big the challenge, we have always worked hard to help this industry overcome it. And I’m confident we can do it again.”

Miller noted that states lost more than $2 billion dollars in gaming tax revenue over the first four months of the pandemic alone. “But our industry responds to challenges with great resolve. And today, gaming is working its way back,” he said, adding that over 90 percent of commercial and tribal casinos are open at reduced capacity per COVID-19 guidelines. He said some states are even exceeding pre-pandemic revenue numbers, and that regional drive-markets are recovering faster than destination gaming hubs like Las Vegas and Atlantic City.