SBC Summit North America: AGA’s Miller bullish on gaming industry resilience and adaptability

December 2, 2021 2:20 AM
  • Rege Behe, CDC Gaming Reports
December 2, 2021 2:20 AM
  • Rege Behe, CDC Gaming Reports

Bill Miller has been president and CEO of the American Gaming Association for only three years. But those three years have arguably been more dynamic and challenging than any period in American gambling history.

Story continues below

A year after Miller joined the AGA, the industry was shuttered by the pandemic. This year’s recovery, with record growth and revenue, is now being challenged by inflation and the specter of YET another COVID variant reaching the U.S.

And yet Miller remains confident that the industry will be able to deal with whatever obstacles that arise.

“We, as an industry, have persevered,” Miller said during a keynote presentation Wednesday at the SBC Summit North America at the Meadowland Exposition Center in New Jersey. “This industry has shown itself to be resilient through its adaptability.”

Throughout a 40-minute conversation with CNBC’s Contessa Brewer, Miller was decidedly upbeat about gaming, while admitting that some of the challenges are unprecedented. When asked about the effects inflation may have on consumer discretionary spending, Miller said the gaming industry is no different than other forms of entertainment, including sports, concerts, movies, and music.

“I think what we’ve seen in this country for the past twenty-some years is a very low inflation in the economy,” Miller said. “And we’ve still seen ebbs and flows where it relates to where discretionary spending goes. But I do think the gaming industry has been pretty resilient, even when we’ve had dips in the economy.”

One issue Brewer mentioned that transcends gaming is the ongoing need for cyber security and insurance, as ransomware attacks proliferate.

Miller responded that if the Pentagon can be penetrated, all businesses and citizens in America are also at risk. But he does think the gaming industry is equipped to deal with most cyber attacks.

“We really have to make sure we minimize our risks,” he said. “I believe that within our industry, we’re in the same boat with those in a retail or hospitality space and that customer databases can be compromised, systems databases can be compromised. But we’re on the leading edge of technology in so many ways and the cyber and security components we invest in are worth it.”

The explosive growth of cashless payment systems will also be an issue for gaming operators in coming years. Miller acknowledged the mindset that cash is essential for a segment of bettors and that option should not be abandoned.

“But we should also recognize that if that’s our mentality, we’ll lose generations of younger people who don’t transact in cash,” he said.

He added that COVID generated an emphasis on contactless payment options and made operators more receptive to cashless systems.

Brewer also addressed the gender gap in leadership roles that has plagued the gambling industry for years. Mentioning Amy Howe, president of FanDuel, and Entain CEO Jette Nygaard-Andersen, Brewer asked if it’s important to promote women and minorities to more prominent roles.

Miller said investing in women and minorities is a good business practice. He cited the advocacy and mentoring group Global Gaming Women and Penn National Gaming’s $4 million STEM scholarship program with historically Black colleges and universities as examples of efforts to increase diversity within the gaming industry.

“You’ve got to start somewhere,” Miller said. “I think too often, everybody bites around the fingers and says you’re not doing enough. Of course, we all need to do better and not just because it’s the right thing to do, but because it’s the smart thing to do. And I think we’ve done that. We’ve created those connections.”