And why you should be too!
In 2014, CDC Gaming became a member of the American Gaming Association. After some thought, we decided to renew our membership for 2015. As “media”, we are an Ally member – and though our dues are only $2,500 a year, there are lots of other things I could do with the money. (Vegas, baby!)
Today I am very happy that I had made that decision – and I can honestly look every casino and gaming supplier executive in the eye and say that that should make the same decision and be a member of the AGA.
Why is CDC Gaming a member of the AGA – especially as we are one of the only gaming media related companies that is a member?
Contrary to what I have been asked, we did not join the AGA due to any “agenda.” Several years ago I was very upset when the AGA partnered with Smartbrief to create a daily gaming news report – but the publication has long ceased being a serious competitor, and its creation let to several positive changes and innovations on our end. I only learned that the AGA was ending its Smartbrief partnership one day before they made a general announcement.
We are not members because of the direct membership benefits. With my background in both player’s club and cultural non-profits, I am familiar with how certain benefits can add important value to a membership. Though the AGA has strongly revved up its benefits package over the last year, most are (correctly) aimed at Core members – casinos and gaming suppliers, rather than Ally members like ourselves.
So why is CDC Gaming a proud member of the AGA?
Over the past year or so the AGA management team has taken several aggressive and refreshing actions in expanding the focus and effectiveness of the organization. They have widened their membership structure to included tribal gaming operators, among others; partnered with other organizations, especially on transportation safety issues; and launched the effective Get to Know Gaming campaign, which includes the Oxford Economics study on gaming industry employment and the gettoknowgaming.org resource website. But that is not the main reason we are members.
The current AGA team, hand-picked and led by president Geoff Freeman, has shown that they are more than capable of doing their jobs. While many do not have long gaming resumes, they have relevant government and trade association-related backgrounds. That has been evidenced by major efforts, such as with FinCEN, as well as other more thought-provoking actions, such as setting up casino-related equipment in the lobby of their D.C. building, including a sports ticker, so that those in Washington can see what the AGA (and the gaming industry) is all about. But that is not the main reason we are members.
The foremost reason CDC Gaming is an AGA member: the entire gaming industry, not just the big guys, needs a well-run, effective lobbyist in Washington.
Last Thursday’s news is a prime example. It appears that the IRS, in its infinite wisdom, is considering lowering the W2G winnings minimum from $1,200 to $600. As is often the case with federal government entities, the IRS has no clue what the real consequences of such an action would be. So someone else has to tell them, and that someone else should know the best way to go about it.
If you are operating a casino: how much will this proposed regulation change cost your business in lost revenue, from players who visit less because of the new rules, play lower denomination machines, or just not play as much because they spend more time waiting for W2G paperwork? How much extra staff and other resources will be required to administer the additional paperwork, on the floor, in the cage, and in the accounting department? I am sure that no matter how big or small a casino is, the added cost of such a regulation would be mountains more than that casino’s annual AGA dues.
If you are a vendor: have you considered what part of your best (or even tenth-best) casino customer’s budget would be reduced to cover the decreased income and increased expenses of this regulation? Probably much more than your AGA dues.
Something that everyone in the industry should think about: if we did not have an effective, experienced lobbyist, how would we fight such a regulation, or something else similarly bad? Many of us know how to effectively communicate legitimate business concerns in our market, our local jurisdiction, even our state, but talking to the powers that be in Washington, D.C., is not part of our regular conversation.
So you now know why CDC Gaming is a member of the AGA. But one more thing: we’re not a dues-paying member because we want others, who have considerably more skin in the game, to get a free ride. There is a job to be done in Washington – and based on everything I have seen over the last year, the gaming industry does have a team that can do that job. So get behind them and join up!
