Casino Enterprise Management

The American Gaming Association (AGA), originally created in 1995 to represent the commercial casino gaming industry in the United States, has become an active participant in global events on behalf of its members.

Several industry segments comprise the AGA’s membership roster. The manufacturer/operator category is the largest component, complemented by professional and financial services groups, associations, publications and unions. To achieve its “fundamental goal of creating a better understanding of the gaming entertainment industry,” the AGA serves as a national clearinghouse of information. It disseminates facts to the media, elected officials, special interest groups and the general public.

The AGA’s 17-member board of directors has high expectations for 2008, under the leadership of Chair Gary Loveman (chair, president and CEO of Harrah’s Entertainment) and Vice Chair T.J. Matthews (chair and CEO of IGT). Looking ahead, communicating a positive message through education and awareness programs is one main focus of the AGA agenda. A key concern is compulsive gambling addiction. The AGA has spent years educating itself and the public about responsible gambling, utilizing public service programs, training employees and funding research.

The AGA also hopes to participate in more foreign commercial events, including tradeshows and seminars, to maximize opportunities for its member companies.

From last year to the present, and looking into 2008, the AGA is actively involved with several projects.

AGA Crosses the Pacific
The debut of the Global Gaming Expo Asia (G2E Asia) last June 13–14 far exceeded the expectations of its organizers, Reed Exhibitions and the AGA. Held at the Macau Tower Convention & Entertainment Centre, the expo was the first of what the AGA and Reed hope will be a long-term annual tradeshow program. 

G2E Asia 2007 attracted 3,000 international gaming professionals from more than 50 countries. The convention floor included 27,858 square feet of sold-out exhibit space that showcased 80 companies’ products and services.

AGA President and CEO Frank Fahrenkopf Jr. says that, despite the show’s success, it could have easily quadrupled those statistics with additional floor space. He eagerly anticipates G2E Asia 2008, which will relocate to the newly opened Venetian Macao. “We can really build the show next year because the Venetian Macao has 1 million square feet of convention space,” Fahrenkopf said. “Our goal for the 2008 show, scheduled for June 3–5, will be to offer 85,000 square feet on the trade floor. We are close to selling all the exhibit space.”

Despite interest in expansion, the AGA and Reed aim to manage the show’s future development. Fahrenkopf says that they are committed to controlling its growth. “I know there is pressure to immediately grow G2E Asia larger,” he explained. “However, we hope to do this in a responsible way because it is on the other side of the world. We want to grow this thing smartly. Realistically, the Venetian, Wynn, MGM Mirage and Grand Lisboa properties are the newest hotels in Macau. Another 30,000 to 40,000 rooms are under construction.” (Genting International and the Las Vegas Sands are also each developing $3 billion full-entertainment facilities.)

The additional 50,000-plus square feet of space for G2E Asia 2008 will offer other growth opportunities. Fahrenkopf anticipates a multi-faceted conference program, unlike the abbreviated agenda in June, when only one large available auditorium limited the number of seminars.

Next year, Fahrenkopf says the conference program will “drill down,” allowing more focused workshops on specific issues. Four topics that will be emphasized next year are security and surveillance, game technology, marketing in the Far East, and responsible gaming.

Fahrenkopf claims that, historically, compulsive gambling problems have not been a top priority in that region. He traveled to Singapore in early November to speak about responsible gaming.

Also, slot machines play a smaller role in Asia. “Walk into a casino in Macau and it is so much quieter. Table games are much more popular. Slot machines make up three to five percent of the gaming floor, so slot manufacturers hope for increased exposure and growth in that region,” Fahrenkopf said.

As Macau’s gaming industry booms, serious discussions about gaming are also underway in Japan, Taiwan and the Philippines.

A Successful Show in the United States
In less than a decade, G2E has wowed audiences with its successful growth and expansion. After years of early fall shows, G2E was rescheduled to its current mid-November timeslot in 2006. Fahrenkopf cites a 10-year commitment to the same time period for the show. “We took this seriously, asking our AGA manufacturers and operators for feedback as to their buying seasons and budgets. We got total cooperation from the exhibitors and buyers,” he said.

G2E 2007 covered 330,000 square feet, up from 300,000 square feet last year. Fahrenkopf estimated that the number of exhibiting companies rose from 700 in 2006 to at least 750 this year.

Frank Deford kicked off the show. As the senior contributing writer for Sports Illustrated, Deford has written extensively on sports betting. He is also a regular contributor on National Public Radio’s “All Things Considered” broadcast.

New educational programs also debuted at G2E 2007. In cooperation with the International Gaming Institute at the University of Nevada Las Vegas, the G2E Scholarship Program provided 50 talented students the chance to experience G2E 2007 up close and personal.

Scholarship recipients received a free three-day conference pass, plus access to G2E’s exhibit floor. They also gained entrée to a special student group session on gaming and hospitality career opportunities. G2E exhibitors and industry professionals had access to their resumes or CVs for potential internship opportunities. Finally, by assisting with the on-site logistics for one full day, participants gained hands-on experience of how the conference is organized.

The 50 students submitted individual essays explaining their desire to attend G2E 2007, what they hoped to learn and how participating in G2E would facilitate a future gaming or hospitality career. G2E Conference Advisory Board members and directors from the International Gaming Institute reviewed each essay.

Also new was the G2E Leadership Academy, held on Monday, Nov. 12 and Tuesday, Nov. 13. The forum trained industry “rising stars and managers.” The TRACOM Group, a leading workplace performance company, coordinated the program. TRACOM Group designed the intensive day-and-a-half of sessions to concentrate on identifying, building and practicing leadership skills.

The “Eye in the Sky Security and Surveillance” pavilion displayed new security and surveillance technology. These were two leading topics of interest for attendees.

G2E attendees also enjoyed the ever-popular “State of the Industry” panel of bright, articulate industry leaders, which always draws a huge crowd. This year’s conversation closely examined Internet gaming, and Fahrenkopf once again served as moderator.

Doing Right by Society
Gaming offers enjoyable, exciting entertainment for millions. However, a small percentage of these people exhibit self-destructive behavior in their own gambling habits, resulting in addiction.

The AGA recognizes its obligation to promote responsible gaming behavior and has taken the lead in doing so for years. Since it created the National Center for Responsible Gaming (NCRG) in 1996, more than $15 million has helped finance 140 studies by more than 30 prominent institutions. The casino industry recently committed $7.6 million to fund groundbreaking research at the NCRG. Financial pledges from AGA members range from $125,000 to $2 million.

NCRG Chair Phil Satre and Christine Reilly, executive director of the Institute for Research on Pathological Gambling and Related Disorders, recently completed a three-city public relations tour to promote responsible gaming programs and research. Their media events included an awareness luncheon in Las Vegas; an editorial board meeting in Kansas City, Mo., with The Kansas City Star and other media interviews; and a presentation to the Pennsylvania Gaming Control Board in Philadelphia.

The AGA also celebrated the 10th anniversary of its annual Responsible Gaming Education Week (RGEW), Aug. 6–10, 2007. The industry-wide umbrella program is charged with educating casino employees and the public about problem gambling.

Each year, the campaign has a specific theme; this year was “Responsible Gaming: In Your Own Words.” It stressed how all community members play a role in promoting responsible gaming all year long.  Employees from across the United States submitted essay and poster entries.

The 15 winning essays will appear in the NCRG’s new “In Their Own Words: Voices of Responsible Gaming” publication, which is distributed nationwide. Loveman and New Jersey Casino Control Commission Chair Linda Kassekert also contributed essays.

The winning design is now featured on posters and other collateral materials used to promote RGEW. The remaining finalists’ designs will be released as part of an ongoing Responsible Gaming Education Poster Series.

Getting the Truth Out
Fahrenkopf commends the AGA for working hard to communicate with industry members. However, he acknowledges the constant need to interact with the media and the public as well. AGA Director of Communications Holly Thomsen and her staff have developed a “Facts at Your Fingertips” set of resources that is available on the AGA website, www.americangaming.org. It provides comprehensive resource information on the commercial U.S. industry.

Upon assuming the chair position last January, Loveman formed a special public relations committee, striving to educate the media and governmental leaders. The group will continue to present the appropriate industry information whenever possible.

The AGA has also launched an “In Case You Missed It” press release program.  “We realized that every time a new Congress came to office, we had to begin again with our education about the industry. It is the same with the media. We developed the program to easily distribute news items,” Fahrenkopf said.

As the gaming industry proliferates throughout the United States, media attention has also changed. Other industries and groups have developed an interest in gaming for financial, religious, health or civic reasons.

According to Thomsen, the national press list has gone beyond daily business and gaming reporters. “As the number of reporters with an interest in gaming grows, we are attempting to better coordinate how we can communicate with them,” she said.

While the AGA can promote its own good news, it unfortunately must remain vigilant about combating negative press. The AGA now maintains a “truth link” on its website, called the “Real Deal.” Fahrenkopf describes the site as a place where the industry can play both offense and defense. “The ‘Real Deal’ helps us to refute incorrect allegations and straighten out the facts for reporters. It is a place to promote and defend the industry, and we have made it easy for reporters to access the right information. Also, the ‘Chairman’s Corner’ column will discuss relevant topics on a regular basis,” he said.

AGA board members are influential, high-profile individuals in their communities. Fahrenkopf explains they intend to use their visibility to positively reinforce the industry. He says, “We are tracking our board members’ travel schedules. If they travel to a particular location, it is in our best interest that they make themselves available for interviews with the local media.”

Can’t Escape the Politics
Every industry faces legal and legislative pitfalls, and gaming confronts more than most. While the Internet has opened doors for other international industries, gaming remains a holdout due to legislative restrictions from the early 1960s.

Fahrenkopf reports that four Internet bills that affect gaming are currently floating through the halls of Congress in Washington, D.C. However, nothing definitive has happened so far.

Congressman Barney Frank (D – Mass.) chairs the House Financial Services Committee. He has introduced a bill to legalize, regulate and tax Internet gaming on a federal level. A companion bill from Congressman Charlie Rangel’s (D – N.Y.) Ways and Means Committee would establish the taxation component.

A third bill addresses Internet Poker. Introduced by Congressman Robert Wexler (D – Fla.), it defines Poker as a game of skill, not chance, excluding Poker from any existing or future gaming prohibitions. So far, the courts have ruled it as both, making the bill’s passage doubtful.

The AGA supports only one of the four. Congresswoman Shelley Berkley (D – Nev.) and Jon Porter (R – Nev.) have proposed bi-partisan legislation — with 65 co-sponsors — that recommends launching an independent study of Internet gambling, including such issues as whether the technology exists to properly regulate Internet gaming. The National Research Council of the National Academy of Sciences would conduct the analysis.

Fahrenkopf stated: “The key to any legitimate Internet legislative activity is that it includes regulation that ensures integrity to the industry. Not everyone is sure that it can be done, but professionals can determine that. If passed, the bill would require a one-year study. The entire process could take at least four years.”

Regardless of what legislation is proposed, the AGA opposes any form of federal taxation. “We still want to see Internet gaming regulation, and any potential taxes, determined at the state level,” Fahrenkopf said.

Rising from its Roots
The AGA has proven the power of a good organization with solid roots. Under Fahrenkopf’s able leadership, the experienced staff at the AGA headquarters will continue to favorably impact the legislative, social, economic and business interests of the gaming industry.

Sharon Harris has reported on the North American and Caribbean casino gaming industry since 1993, and the American coin-operated amusement industry since the 1980s. Based near Atlantic City, she can be reached at (609) 601-7890 or sharonhar[at]aol.com.