US President Donald Trump signs relief bill that could benefit the gaming industry

President Donald Trump on Friday signed into law a federal relief bill that provides emergency liquidity, tax relief and additional support for small businesses, among other measures that could benefit the gaming industry amid the coronavirus impact. The $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act funds will be allocated to states then apportioned to individual industries based on economic figures like the number of workers and taxable revenue generated.

Essentially every commercial gaming establishment in the United States is closed, with no definitive timeline for a return. The American Gaming Association (AGA) estimates 650,000 direct gaming employees have had work stoppages and $43.5 billion in economic activity could be lost if the shutdown were to last two months.

Bill Miller, AGA’s president and CEO explained in a statement that the CARES Act provides tax relief to help gaming companies keep workers on the payroll; opens access to critical capital through loans for all industry segments; provides direct economic support for millions of American workers and their families; and offers vital stabilization funding for tribal governments. 

With the House vote and President Trump's signature, gaming employees, their families, and communities will see needed relief. Read @BillMillerAGA's latest update: https://t.co/LRQfFuPZ9w pic.twitter.com/UdnnlUI4Pi

— American Gaming Association (@AmericanGaming) March 27, 2020

“We commend Congress and the administration for acting swiftly to provide needed relief. The gaming industry united to achieve a major first step that will help sustain us during the required shutdown and ensure America’s employees can return to their jobs as soon as it’s safe," Miller said. “But our fight is not over. As the nation’s response to the pandemic evolves, we know gaming businesses, workers, and their families will continue to need support. We will keep fighting to help every aspect of the gaming industry as Congress and the administration consider additional economic relief measures.”

Past federal responses to natural disasters and financial crises, such as Hurricane Katrina and the 2008-09 global crisis, excluded gaming companies from assistance available to the rest of the business community.  

This financial aid would include the expanding legal sports betting market in the US. On Thursday, Washington became the 21st state to pass sports betting legislation in the past two years. Legal bookmakers were operating in 16 states, with more jurisdictions preparing to launch, before casinos around the nation began closing. While in-person sports betting has ceased, several online bookmakers in the U.S. remain open. Indiana, New Jersey, Nevada and Pennsylvania are among the states with active online sports betting, albeit with much smaller wagering menus.

Today, President @realDonaldTrump signed into the law the #CARESAct which will help small businesses stay open, help workers keep their jobs, and provide relief for distressed industries as our Country faces the threat of the Coronavirus together. pic.twitter.com/oXtg6RqS4o

— Mike Pence (@Mike_Pence) March 27, 2020

The pandemic has stopped all major American and international sports, leaving bookmakers scrambling to find betting offerings for customers. Table tennis and hockey from Belarus were among the highlighted events at sportsbooks this week. On Thursday, Nevada Gaming Control authorized its sportsbooks to take bets on an eSports tournament.

The new betting markets, however, are doing little to mitigate the loss of the NBA, the NHL and Major League Baseball. Multiple sportsbook operators told ESPN last week that they sometimes go hours without taking a single bet.

With people around the world encouraged to stay at home, other forms of online gambling have seen upticks, including poker. PokerStars, a leading international online cardroom, held its largest online tournament ever last week, with an $18.6 million prize pool that attracted a record 93,016 entries.