Two of the most critical components of the gaming industry’s future are perception and policy. The American Gaming Association (AGA) is playing an increasingly active role in shaping both.
With regard to perception, yesterday AGA released new research estimating Americans’ betting habits on the upcoming NCAA basketball tournament. With 40 million Americans betting $2 billion dollars on 70 million brackets – and another $7 billion estimated to be spent on individual games – it is increasingly clear that gaming is widely embraced nationwide.
On the policy front, AGA is actively engaged on Internal Revenue Service (IRS) notice issued last week to alter the tax reporting rules for players’ slot winnings. While there are some progressive elements of the proposal, the IRS plan could harm our customers’ experience and fundamentally shift the way in which we do business. We are coalescing the industry on this issue, developing a consensus point of view and will keep you regularly informed on our activities to protect our industry and our customers’ playing experience.
Our strong emphasis on policy was evident during our recent inaugural Public Policy Committee meeting, which convened member government affairs professionals. This committee aims to prioritize legislative and regulatory issues in the gaming industry and provide public policy recommendations to the AGA Board and Executive Committee upon deriving consensus. More than 25 senior gaming industry representatives joined us for a spirited discussion in Washington, D.C. Moreover, this group aligned on the AGA’s policy platform, which is further outlined below.
SHAPING GAMING’S PERCEPTION
Gaming regulations and policies are largely driven by industry perception, some of which is false. AGA launched a multi-year campaign called, “Get to Know Gaming (G2KG)” to help address this underlying issue. In 2014, G2KG focused on the economic impact of the gaming industry. This year, G2KG will concentrate on the employees of our industry to ensure policymakers and stakeholders understand the value of the 1.7 million jobs that gaming supports. Additionally, AGA recently unveiled a national initiative called, “Gaming Votes,” to ensure presidential candidates recognize the vast, positive economic impact of the gaming industry, which is strengthening communities and providing a wide range of jobs for people of all backgrounds. Gaming Votes will educate and empower our gaming employees about the candidates so they know who supports their livelihood and can make informed decisions at the ballot box.
AGA’S POLICY PLATFORM
The Public Policy Committee offered strong support AGA’s newly created policy platform. The platform ensures laser focus on issues, and provides a flexible framework for the AGA to address emerging issues as they arise. The core gaming issues that constitute our public policy agenda are:
- Next Generation Gaming: The public policies that have guided the gaming industry for the last 20 years are, in many instances, obstacles to the industry’s future success. In a highly competitive environment, the gaming industry must be empowered to meet changing consumer demands, reinvest in its product and rapidly innovate. AGA will soon issue a framework for “Next Generation Gaming Policy” principles that streamline regulations, remove barriers to innovation and encourage regulators to be more nimble. Key topics to be addressed include taxation, reinvestment, responsible gaming, shipping requirements, licensing and more.
- Illegal Gambling: Illegal gambling undercuts legitimate business, siphons tax revenues and can harm the perception of our heavily regulated and integrity-based business. AGA will be the pre-eminent leader in exposing illegal gambling and developing national, state and local solutions. The committee agreed that the AGA should commission authoritative research on all forms of illegal gambling and strengthen partnerships with elected officials, law enforcement and regulators to combat this national problem.
- Anti-Money Laundering: AGA will be a vocal champion of the casino gaming industry’s commitment to a culture of compliance, including seizing opportunities to lead productive discussions with industry stakeholders. In 2015, the AGA has a unique opportunity to work even more collaboratively with U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) and other federal agencies. This year, the U.S. will engage in an international review of our nation’s compliance on the issues of anti-money laundering and counter-terrorist financing. The Financial Action Task Force (FATF), an independent inter-governmental body that develops and promotes policies to protect the global financial system, will provide a “Mutual Evaluation” next year, which will outline recommendations that are recognized as the global anti-money laundering and counter-terrorist financing standard.
- Tribal Gaming: U.S. Department of the Interior’s Assistant Secretary for Bureau of Indian Affairs, Kevin K. Washburn, participated in lively dialogue with the policy committee on the current state of Tribal gaming and how commercial and Tribal casinos can work together on issues of mutual interest. The committee agreed the AGA will drive consensus around common cause issues that impact Tribal and commercial casinos and suppliers. With a unified voice, AGA will consider modernized policies around complex issues, such as off-reservation gaming.
Additionally, the AGA will continue to support ancillary business issues, including those impacting:
- Business Competitiveness;
- Labor and Employment; and
- Travel and infrastructure.
Distinct from core gaming issues, the AGA will leverage coalition partnerships to enhance our mainstream profile and lead on areas that directly impact gaming. A recent example includes the AGA’s engagement to successfully pass a six-year extension of Terrorism Risk Insurance Act, which – through engagement with the Coalition to Insure Against Terrorism – provides necessary coverage for many gaming resort and entertainment venues.
Emerging Issue: Sports Betting
The category of “Next Generation Gaming Policy” is certain to regularly surface new issues and opportunities. While not a new issue for the gaming industry, sports betting has emerged as a major point of public discussion following recent statements from N.B.A. Commissioner Adam Silver, other major sporting leagues and lawmakers. In short, the AGA Public Policy Committee agreed to continue to engage the public debate and encourage a board-level task force to study and vet the issue on behalf of the industry. Additionally, AGA will meet with stakeholders and commence research to understand the size of the market and potential impact on AGA members.
We will continue to keep you informed on progress toward these policy priorities, and as is customary of the AGA, be transparent and communicative every step of the way.
