It’s the first week of August. For the American Gaming Association, the main trade organization of the brick and mortar casino industry in the United States, it marks the Responsible Gaming Education Week. It’s the 11th year that the AGA has worked to promote education about problem gambling to its employees, customers, and the general public. The AGA’s membership includes the highest-profile casinos in the world: Harrah’s, MGM Mirage, and Boyd Gaming, just to name a few. AGA member casinos line the strip in Las Vegas and circle the globe. This week, the PocketFives.com Podcast welcomes American Gaming Association CEO Frank Fahrenkopf to the show to discuss the AGA’s position on internet gambling and learn about its awareness endeavors.The AGA was formed in the mid-1990’s in response to a threat in Washington, D.C. to casino gambling revenue. Fahrenkopf explains, “The idea for the AGA came about as a result of a move by the Clinton administration in 1994. There was a proposal to put a 4% tax on all gambling revenue in the United States to fund Mrs. Clinton’s health care reform program as well as President Clinton’s welfare reform program. Over 30 state Governors wrote a letter to the President saying that they depended on gambling revenue in their states. If the Federal Government took 4% off the top to fund its own programs, it would put each state in dire straits. The events sent a message to the casino industry that it should be represented in Washington.” Acceptable gambling varies by state, ranging from lotteries to mega casino resorts.
Fahrenkopf was Chairman of the Republican Party for six years while Ronald Reagan was President. He’s been the CEO of the AGA since 1995. Over the past 13 years, he’s developed a keen understanding of what challenges the AGA must overcome in order to continue to be influential in the U.S.: “We know from the public opinion polling that 80-85% of the American public has no problem with gambling. However, there’s a hardcore 15% of the population who are opposed to all forms of gambling on moral grounds. That segment is led by the Methodist Church and the Presbyterian Church, where the dictates provide that gambling is a sin. Also, too many state legislators think that gambling is the ‘golden goose.’ They believe that you can milk the golden goose by raising tax rates to levels that are untouchable.”
The AGA’s member casinos have also felt the effects of the proliferation of online gambling. While some would argue that online poker, for example, helps drive traffic to poker rooms in casinos, the AGA has suggested that, rather than legalizing and regulating internet gambling, Congress should pass Shelley Berkley’s Internet Gambling Study Bill. Fahrenkopf explains, “We support Congresswoman Berkley’s bill asking for an independent study of the technology to determine whether or not states would have the ability to regulate internet gambling to the same extent as they do for brick and mortar gambling.” The AGA has advocated states’ rights on the internet gambling front.
The Responsible Gaming Awareness Week kicked off on Monday, August 5th and runs through Friday. It’s a marquee event for the AGA and is currently entering its 11th year. Fahrenkopf talks about the importance of the week to what the AGA stresses: “We know that there are some people who can’t gamble responsibly. They represent about 1% of the population. We feel that the industry has a corporate responsibility to our customers and to those who can’t gamble responsibly to do everything we can to increase awareness of problem gambling among our industry’s employees and customers. We annually take the first week in August to focus on responsible gaming awareness.”
As part of the week, the AGA has distributed awareness information to its member casinos, several of which are hosting events to increase education locally. For example, according to the AGA’s website, the “Argosy Casino Hotel & Spa in Riverside Missouri will be running a Design a Game Contest where team members can create a game, coloring book or word game highlighting responsible gaming themes. Winners will receive family vacation prize packages.” This year’s theme, as you may be able to guess, focuses on employees of AGA members spreading the word about problem gambling.
In addition to its casino membership, the AGA also includes Bank of America and Deutsche Bank Securities among its clientele. You’ll also find PricewaterhouseCoopers, Ernst & Young, and even Shuffle Master, Inc. among the member companies that call the AGA home. The organization is based in Washington, D.C.
Check out the rest of the PocketFives.com Podcast, featuring American Gaming Association CEO Frank Fahrenkopf by clicking here. To learn more about the AGA, check out its official website, www.americangaming.org.
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