Smoothing out regulatory disparities and improving operating climates across the state level, along with a more aggressive-minded approach at the federal level, will be the core elements of the gaming industry’s public policy push over the next three years. The shift in tack from the industry’s traditional defensive posture is the ethos of the American Gaming Association’s new strategic plan, rolled out at Tuesday morning at the Global Gaming Expo.
“Let’s go play offense. Let’s go make some really good things happen,” said Geoff Freeman, the group’s president and chief executive officer.
He offered the $1,200 slot tax threshold, which the Internal Revenue Service recently sought to lower, as an example. “Rather than lowering the slot tax threshold, which was set in the 1970s, I’d like to see us raise the slot tax threshold. If you adjust it for inflation, that’s over $5,000 – that to me is a great opportunity (that we have) to go on offense.”
A forum of gaming leaders on the special events stage on the show floor expressed their enthusiasm for the pillars of the plan, which includes creating a federal policy environment that is favorable to gaming, aggressively promoting the social and economic value of gaming, and improving the business and regulatory environment for gaming across states and tribal nations.
“This plan is exactly what the industry needs to focus on,” said Mike Rumbolz of Everi, highlighting the need for greater regulatory synergy across the jurisdictions in which the industry operates and arguing that gaming must continue to improve how it markets itself.
“We haven’t necessarily explained the virtues of our industry. It’s viewed through the lens of Nevada’s early days, which were lacking a lot of regulation and a lot of control,” he continued.
One example of how operating environments can be improved was raised by Craig Clark, general manager at Rivers Casino in Pittsburgh, who referenced on multiple occasions during the panel the steep 55 percent tax rate faced by casinos in Pennsylvania.
Clark noted that the tax burden has impaired his ability to reinvest in his property and construct a hotel tower.
The opportunity for states and tribes to potentially implement legal sports betting frameworks also falls under the strategic plan’s umbrella.
Robert McGhee, vice chairman of the Poarch Band of Creek Indians in Alabama, emphasized that he is excited by the potential to add a new offering to his properties, but noted that tribes need to have a seat at the table with regards to how sports betting legalization may be rolled out, and that greater unity with the commercial segment of the industry must be continually sought after.
Freeman echoed that having a unified message across tribal and commercial segments of the industry with regards to sports betting will be critical to any federal or state-level legislative solution.
“If we rely on Capitol Hill staffers to figure out our differences, we’re going to be in a world of trouble,” he said.
