Gaming Industry Colleagues—
As you’ve no doubt heard, Congress failed to reach an agreement on funding for the federal government and all non-essential functions entered a “shutdown” as of midnight this morning. No one in Washington has a good sense as to how long this shutdown will continue (despite the countless pundits who dominate your television). The American Gaming Association is actively monitoring developments and will provide updates when warranted.
Key Gaming-Related Functions Expected to Continue
Below is a brief overview of how the government shutdown may affect gaming-related federal agencies in the near term:
Department of Homeland Security—All Transportation Security Agency and Customs and Border Protection (CBP) functions are anticipated to remain fully operational at our nation’s airports and land borders. CBP may be unable to provide overtime to officers which could lead to further delays for travelers entering the country thru gateway airports.
Department of Transportation—The Federal Aviation Administration will remain fully operational throughout the government shutdown. All work on future improvements to the aviation system is deemed non-essential and will shutdown immediately. Amtrak is expected to remain fully operational.
Department of State—Visa processing for foreign visitors to the United States will continue at consulates around the world. Processing was halted during the 1996 government shutdown and this activity should be closely watched.
Department of the Treasury—Functions that relate to the gaming industry, including the Internal Revenue Service and the Financial Crimes Enforcement Network, are expected to remain fully operational.
Possible Impact on Consumer Spending
The federal government currently employs more than four million individuals. Many of these individuals will cease to receive compensation and many more will receive delayed compensation as processing slows. Americans will continue to receive payments through entitlement programs such as Medicare and Social Security, but discretionary programs will cease activity.
The effect on consumer demand is uncertain, but according to the Washington Post:
“A shutdown of a few days might do little damage, but economists, lawmakers and analysts are increasingly bracing for a shutdown that could last a week or more, given the distance between Republicans and Democrats. Such an outcome would suck money out of the economy and spread anxiety among consumers and businesses in a way that is likely to hold back economic activity.” (September 29, 2013)
The AGA continues to urge policymakers to rapidly reach a compromise on critical fiscal matters. We will provide additional industry updates as necessary.
Geoff Freeman
President and CEO
American Gaming Association
