“We are a different kind of industry which demands tough regulations"

First of all, he described AGA as a national trade association that works to build understanding on information, statistics and analysis in gaming in US and worldwide and spoke about the key roles of the entity. “AGA represents the industry in Washington DC”. He added that one of the things they speak is about responsible gaming. He said that 1 % of the population have gambling problems at a worldwide level. “Even is just 1 %, it is important that companies have responsible gaming programs.”

Then, he commented that AGA hosts G2E in Las Vegas and Asia, in partnership with REED Exhibitions, and declared that this year AGA also works with Monographie to organize SAGSE Buenos Aires. After that, he focused in the current situation of the industry in three areas: US, Asia and Latin America.

In US, said Fahrenkopf, AGA represents commercial casino industry, native casinos, sports racing, charitable gaming, lotteries, pari-mutuel. “The casino industry is a considerable part of the national economy. AGA stimulates local communities and governments, as well as the federal government.” This is an important industry because it generates a lot of money in tax revenues for local, regional and national governments, as well as employment.

Then he talked about the international crisis that affects US and the challenges that the industry faces: A downturn in consumer spending (as every other industry) and the fact that major companies have a very high loan structure in important projects. With the crash of the markets, liquidity decreased and financial problems started. People spend less. “2008 is the first time in 40 years in which there was a loss in the industry,” he pointed. He also commented that the US does not have a federal gambling system, so each state has different regulations on the matter. Each state decides if it wants gambling or not, what kind of gambling they accept, etc.

When talking about Asia, he affirmed that Macau is today the world largest gaming market, which in four years exceeded Nevada winnings. He declared that it faces two problems: A lack of infraestructure and the restriction of visas for Chinese citizens.

Besides, AGA President said that Singapore is also growing and mayor facilites are being built in the country, and commented that the Taiwanese government voted to allow gaming and that the new president promised to change the law, but it is still a controversial issue.

When talking about Latin America, he considers that it is a very important market for international operators. “Right now the market is expanding. That’s why AGA is here at SAGSE. Chile and Argentina are leading the way. Unlike US and ASIA, Latin America has not been hit by global financial crisis. Chileans are gambling more and spent more money this year. Existing Latin American markets are evolving and gaming establishment throughout the region are developing more sophisticated.”

When talking about future trends, he said that, in US, people want diversified facilities, with gaming resorts that include retail shops, spa, theaters, restaurants, etc. “Today, less than 50 % of the revenue come from gaming in Las Vegas. Entertainment is what attracts people, and that should be considered for the future.”

Finally, he spoke about online gaming and pointed that countries are discussing regulation on the matter and commented that US Representative Barney Frank introduced regulation that would legalize Internet. There is a change compared to traditional gaming, because the federal government would regulate on the matter, but also said that the industry is divided and have different opinions on how it should be implemented.

“Regulation is important to encourage private investment. We are a different kind of industry, which demands tough regulations to allow integrity for our business,” he concluded.