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BARACK OBAMA
Obama and gaming
…One year later
Sharon Harris looks at the impact – positive or negative – of the man
heralded as a saviour on his election victory. Many fans are now
eating their words – but what has Barack Obama meant for the
gaming industry so far?
A
s President Barack Obama took American Gaming Association (AGA) people than the US automobile industry,
office on January 20, 2009, the President and CEO Frank J. Fahrenkopf Jr. software manufacturers or wireless phone
United States experienced its worst praises specific stipulations. He says, “For carriers.”
economic meltdown in decades. gaming, the economic stimulus bill included Despite enormous challenges, Spectrum
Several giant banks risked collapse some helpful language. Provisions let Gaming Group Managing Director Mike
and billions in losses as unemployment companies defer tax payments on income from Pollock remains optimistic, but considers the
climbed. He promised immediate action. the repurchase of debt, and deduct up to half Stimulus Package as short-sighted.
After a challenging year, Obama has learned the cost of new equipment purchases or “We must take a long-term view. The
the differences between campaigning and upgrades in the first year of service. convention business, particularly in Las Vegas,
governing… the public demands results over “These were real wins for casino operators is wrapped up in the national economy’s DNA.
intentions. Obama has seen his high approval and equipment manufacturers. Together, these During any week, a big chunk of the economy
ratings plummet. provisions saved billions for our companies, plays out at Las Vegas conventions. Hundreds
What happened? His “Change We Can allowing the industry to keep its promises to its of industries make thousands of deals, racking
Believe In” mantra promised a new political era employees, customers, shareholders and the up billions in sales across America,” says
in Washington. It did not happen, and communities where we operate.” Pollock.
Congress remains as polarized as ever. While the Stimulus Package’s tax breaks
The Gallup Poll reports that Obama begins generically helped gaming, other provisions
his second year in office at 50% job approval, a blocked commercial casinos from any financial
“I don’t believe President
drop of almost 20%. It ranks as second lowest assistance. According to gaming legal expert,
Obama meant to imply
of all presidents at this juncture since 1956 – Professor I. Nelson Rose, “Congress recognizes
Ronald Reagan scored a point lower. that most Americans view gaming as a slightly
that all businesses
Last year, Casino International questioned disrespectable deep pocket. This explains the should forego Las Vegas
sources for their thoughts on how the new industry’s continual exclusion from programs
Obama Administration would impact the like the stimulus bills.”
for their corporate
economic, labor, political and tribal The appropriations language specifically meetings and events, but
components of the gaming industry. Because included gaming on a “carve-out” list, which
Obama’s short political career offered little also highlighted aquariums, zoos, stadiums,
the business community
history, the experts hoped an Obama White museums and other venues deemed took the remarks quite
House, plus strong Democratic control of unnecessary recipients of direct stimulus
literally…”
Congress, would benefit gaming. dollars.
Have their predictions met expectations? Fahrenkopf states, “More troubling was that
Casino International asked these people, plus a several senators from gaming states voted for The Stimulus Package passed while the newly
few new sources, for their answers. the carve-out. Perhaps they believed the established Troubled Asset Relief Program
gaming industry was not pursuing any specific (TARP) bailed troubled financial institutions
THE ECONOMICS appropriations funds, and considered the with federal funds. Simultaneously, Obama’s
language harmless. own comments added fuel to the new law’s
In February 2009, Obama and a Democratic “The industry was not prevented from questionable language. He warned that
majority in Congress enacted its signature receiving benefits it otherwise would have. companies receiving TARP assistance ‘can’t go
$787 billion American Recovery and However, the harmful exclusion bolstered the take a trip to Las Vegas or go down to the Super
Reinvestment Act (ARRA), nicknamed the perception that gaming does not deserve the Bowl on the taxpayer’s dime”. The subsequent
“Stimulus Package”. It promised job creation same benefits as other industries, despite convention cancelations cost casinos and
and unemployment below 8%, while repairing providing significant tax revenues and capital hospitality workers millions in losses.
the nation’s infrastructure. investment. Gaming also directly employs more “I don’t believe President Obama meant to
40 FEBRUARY 2010
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