OPTIMISM ABOUNDED AS FINANCIAL HEADWINDS HAVEN’T HIT GAMBLING YET
Te trade show typically has an unofficial theme, and this year executive after executive was cited in media reports as lamenting the disconnect between the strength of their business and the weakness of their company’s shares. Many suggested the stock market has overreacted to a likely slowdown.
Te economic state of the industry became the largest topic in the G2E debate. Experts warn that a downturn across the wider US economy is more likely than ever, with the Federal Reserve continuing to raise interest rates to combat inflation that shows no signs of abating. Yet top gaming industry executives said that they are still optimistic, having seen little signs of worry in the sector.
Many media outlets noted that you wouldn’t know the US gaming industry is fretting about any loss of business or potential downturn in the economy. Casinos were among the first businesses to reopen after the pandemic shutdowns, and gamblers came roaring back, with profits surging.
Tere were G2E panels discussing inflation and the supply chain – all issues the industry continues to deal with – but many reports remarked that, led by the Strip, Las Vegas continues to drive Nevada with a record-setting 18 consecutive months of revenue exceeding $1bn.
Gaming revenue in Nevada has been booming, though international traveller numbers are below pandemic levels. At regional casinos across the US, revenue numbers rolling out so far for September show they’re even with pre- pandemic numbers or up double digits in some cases.
During the expo, the board of the Las Vegas Convention and Visitors Authority was taking a peek at new consumer-marketing television ads that humorously convey the message that the Strip remains an adult playground, with amenities necessary for a well-deserved break. Te new marketing campaign comes as Strip tourism numbers remain 11 per cent below 2019’s pre-pandemic level of 42.5 million visitors.
ILLEGAL GAMING WAS IDENTIFIED AS A SERIOUS REPUTATION ISSUE
Squashing the illegal market — those off-shore operations that consistently pop up with the most basic Google search of “sports betting” — was also widely discussed. AGA estimates $300bn is bet annually on unregulated machines, which translates into gaming revenue losses of $15bn and tax losses of $4bn a year.
AGA Director General Bill Miller was quoted as saying that the trade organisation will redouble its efforts. In fact, the focus on safety and security made him the most influential spokesperson in the whole debate:
AGA Director General Bill Miller was quoted as saying that the trade organisation will
redouble its efforts. In fact, the focus on safety and security made him the most influential spokesperson in the whole debate: said that next month the group will publish new research showing that Americans gambled more than $300bn a year through illegal internet sites and slot machines and not regulated. The executive added that the figure translated to $15bn in lost profits for legal casino markets. “It’s not about us,” Miller said. “It’s about the broader impact. Illegal
gambling costs communities about $4bn in taxes a year.”
In his keynote address at the convention, Miller said that next month the group will publish new research showing that Americans gambled more than $300 billion a year through illegal internet sites and slot machines and not regulated. Te executive added that the figure translated to $15bn in lost profits for legal casino markets. “It’s not about us,” Miller said. “It’s about the broader impact. Illegal gambling costs communities about $4bn in taxes a year.”
Miller asked for help from law enforcement, for retailers across the country to remove unregulated machines, for tech and media companies to cut ties to the illegal sites and for policymakers to enact tougher laws.
Te second most influential spokesperson, Amy Howe, CEO of Fanduel, also addressed the topic, asking the audience if they could imagine a smartphone industry where a third of the revenue goes to illegal operators. She added that illegal gaming not only creates a threat in terms of having something that’s not safe for consumers but from a competitive standpoint it also puts legal companies at a disadvantage because they have to pay taxes and do checks.
Reports of a growing illegal gambling market consisting of unregulated slot machines in several states also concerned Penn Entertainment CEO, Jay Snowden. Many journalists reported on how he sent members of his management team into Pennsylvania communities to visit convenience stores, bars and taverns to investigate reports of illegal gambling.
He wasn’t happy with the findings and used an executive keynote session to tell attendees at the expo that his team found fake online lottery products that are supposed to be scratch tickets that have the look, sound and feel of a spinning real (slot) machine. Snowden then sent a warning message to the G2E audience, calling illegal games a “catastrophe in the making” and “a reputational issue for our industry.”
Reports of a growing illegal gambling market consisting of unregulated slot machines in several states also concerned Penn Entertainment CEO, Jay Snowden. Many journalists reported on how he sent
members of his management team into Pennsylvania communities to visit
convenience stores, bars and taverns to investigate reports of illegal gambling.
DIGITAL PAYMENT PUSH BECOMES A MUST
Cashless payment solutions were identified as being at the forefront of innovation for gaming. Several casino technology companies promoted their cashless gaming solutions to trade show attendees, as the industry pushes for more integration of the technology onto the gaming floor. London-based International Game Technology PLC (IGT) showcased its IGTPay and Resort Wallet modules that integrate cashless payment options for consumers with its casino management system.
Te media resonance of that payment solution helped IGT become the most influential company in the debate in terms of media impact.
We determine an organisation’s media impact in the context of a topic by looking at its media influence score calculated in terms of coverage by high-profile media outlets, topic relevancy score measuring its contextual relevance, and
WIRE / PULSE / INSIGHT / REPORTS P49
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