The shutdown of the nation’s gaming industry due to the coronavirus pandemic cost states $2 billion in gaming tax revenues over four months, but American Gaming Association CEO Bill Miller said there are reasons for optimism heading into 2021.
Miller, in a state of the industry address at the opening of the Virtual Global Gaming Expo Tuesday, said the “overwhelmingly” positive views Americans have toward the casino industry will help in a recovery that saw nearly 1,000 commercial and tribal casinos close beginning at the end of March in an effort to slow the pandemic.
Roughly 90% of the industry has reopened, albeit under reduced capacity guidelines and COVID-19 health and safety protocols.
Miller said commercial gaming numbers have rebounded, with some states exceeding pre-pandemic numbers. But destination markets, such as Las Vegas and Atlantic City will take longer to recover.
“We know a full recovery will take time, and it will be uneven,” Miller said.
G2E went virtual this year after the annual in-person conference scheduled for earlier this month was canceled due to COVID-19. G2E, the industry’s largest trade show and conference, has been rescheduled for October 2021 in Las Vegas.
The AGA – which is celebrating its 25th anniversary since its creation – said Americans view the gaming industry in a positive light due to its job creation, how it sustains small, local businesses, and its tax revenue contributions.
“These are the reasons Americans have embraced gaming and they will fuel gaming’s recovery,” Miller said. But a full recovery, he added depends on factors that the industry can’t control.
“How quickly will a vaccine be developed and distributed; how soon can occupancy restrictions safely be lifted; and when will people feel comfortable getting back on airplanes?” Miller said. “But the things we do control provide reasons for optimism that gaming can and will rebound to the historic highs we were enjoying before the pandemic.”
Miller cited the efforts of casino operators to “reimagine” the casino floors to create a safe environment while COVID-19 continues to be an issue in many states. Casinos have invested in PPE and sanitation, employee testing, and contact tracing efforts, and rolled out plans to reopen the meetings and convention business segment.
Miller said the Washington D.C. trade organization, which has seen the casino industry expand from just Nevada and New Jersey in 1995 to some 44 states over the past 25 years, will focus on three priorities in the coming year – building support on Capitol Hill, payment modernization, and continued sports betting expansion.
He said the revival of the Congressional Gaming Caucus is helping the industry’s efforts in Washington D.C., but he was disappointed that a partisan stalemate stalled legislative COVID-19 relief. The industry, however, is focused “on ensuring that gaming is included in additional recovery assistance.”
At the 2019 G2E, Miller advocated the industry adopt cashless or digital payment solutions to help modernize the industry. In the past year, spurred on by COVID-19, changes have already taken place.
Regulators in Nevada and Pennsylvania approved new rules to permit digital payments in their casinos and he expects New Jersey, Indiana, and Iowa to follow suit. Tribal casinos such as Hard Rock in Florida and Southern California’s San Manuel are using digital payment technologies.
“Every day, I’m seeing suppliers announce new, innovative payments products,” Miller said. “Payment modernization is not only about customer convenience. It also promotes responsible gaming by helping players set budgets, limit playing time, and closely track play. And it helps casinos follow the money, a key component of our anti-money laundering efforts.”
With sports betting currently active in 18 states and Washington D.C., and additional states expected to launch in 2021, Miller said the focus will be on adding the activity to the AGA’s responsible gaming focus.
“Responsible gaming is core to our sports betting efforts,” Miller said. “This is a shared responsibility and our new partners in sports and media have an important role to play.”
Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
