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Stateside
Sharon Harris examines the findings of two recent gaming reports in the US
Published:  01 January, 2008

The 2007 G2E was a whirlwind of activity, education and networking. AGA President and CEO Frank Fahrenkopf Jr. reported the show covered approximately 330,000 square feet, up from 300,000 square feet in 2006. He projected an exhibitor increase from 2006 to more than 750. Impressive numbers. 

I remember the 1990s shows, when several thousand was considered a big score. Business was personal. If we didn’t know someone, our acquaintances could connect us.
More than 25,000 international visitors proved those days are gone. I heard multiple languages spoken. Global businesses cross borders like we cross our neighborhood streets.
My job emphasizes US trends. What’s happening in America? A September 2007 poll, titled  “A Survey of Attitudes of Casino Industry Employees”, reveals a thriving commercial gaming industry, excluding Native American properties. Most of the 366,000 employees, earning $13.3 billion at 460 gaming operations in 11 states, enjoy their jobs.
Another AGA report, the annual G2E Future Watch Series, revealed that the executives are also happy. The “Evolution of Casino Gaming Technology” analyzed new gaming technologies, their role regarding the pari-mutuel industry, plus emerging slot and table technology. It also warned of technological “overload”.
The 22 executives and analysts surveyed are optimistic about the future of server-based gaming. While Nevada remains the initial testing market, two-thirds estimated regional markets, including riverboats and racinos, would operate downloadable games within three years. Companies planning US sales, pay attention.
Traditional table games offered in an electronic, slot-based format also got a nod. Two-thirds gave mobile gaming low marks for potential.
For older customers – those who remember the slots with three reels that actually spun – half the experts believed in them for certain demographics. Nine predicted their future is in smaller markets or lower-end gaming halls. 
Regulatory approval is required to operate electronic table games in the US. More than half viewed regulatory issues as the biggest obstacle for electronic table games. Many questioned their testing classification. One-third called them slots, slightly more called them tables and one-third wanted a new classification.
Technology is great, but too much can be counterproductive. The smarter guys realize older people have most of the money, and they aim to balance a slower technological revolution with personal service.
Finally, the US continues to sit on the Internet gaming sidelines. This year’s State of the Industry panel focused exclusively on Internet gaming in the US and overseas. Fahrenkopf moderated the panel, consisting of MGM Mirage Chairman Terry Lanni, former New York Senator Alfonse D’Amato, Andre Wilsenach, CEO of the Alderney Gaming Control Commission, and Harrah’s Entertainment Chairman Gary Loveman.
Congress may be forced to soften its Internet gaming ban within the United States. Since the 1961 Wire Act, which prohibited using phone wires to transmit information on odds and racing, technology has altered the discussion.
The World Trade Organization’s lawsuits against the US may top $100 billion. They claim American policy that allows Internet betting on horses, but prohibits online gaming, violates the 1994 General Agreement on Tariffs and Trade (GATT) international trade treaty.
The AGA supports a one-year study to examine any available technology that blocks illegal bets from unapproved jurisdictions, minors and the vulnerable.
Unfortunately, the Unlawful Internet Gambling Enforcement Act, part of the Safe Accountability For Every Port (SAFE PORT) Act of 2006, revised US criminal codes by banning all electronic payment and credit transactions for Internet wagering. That effectively killed much of the online gambling activity in the US. The issue remains in flux, with multiple variables and potential solutions.
Update from last month: The New Jersey Casino Control Commission (CCC) and multiple special interest groups  “hammered” the Tropicana’s owner, Columbia Sussex Corporation, at its December license renewal hearing. The stunning 4-1 decision denied their license, forcing Columbia to sell the property.
The Tropicana will remain open under a retired New Jersey Supreme Court judge as trustee. Columbia will also sell their riverboat casinos in Indiana and Mississippi. As of press time, the Atlantic City Tropicana already has some potential buyers.
The ruling accused Columbia of an abysmal record of compliance, stating the company lacked character and integrity to hold a license.


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