Bill Miller became the CEO of the American Gaming Association (AGA) in January 2019 when the US commercial gaming sector was ready to experience significant expansion. Following the repeal of the Professional and Amateur Sports Protection Act (PASPA), legal sports betting began to flourish across the country. In 2019, the industry recorded its fifth consecutive year of revenue growth, hitting an unprecedented $43.6 billion. This success translated into $10.2 billion in gaming taxes for state and local governments, benefiting educational funding for 832,000 elementary and secondary school students in 21 of the 25 commercial gaming states.
Miller's first year was marked by optimism, but 2020 brought the onset of the Covid-19 pandemic. Casinos, unaccustomed to closing, adapted by installing locks, leading to an unprecedented halt in operations. Despite this setback, the industry made a remarkable recovery, with revenue jumping to $53.0 billion in 2021, surpassing previous records. Miller described this rebound as "nothing short of remarkable."
The resurgence in the gaming industry was evident during one of the busiest Global Gaming Expos at The Venetian Expo in Las Vegas, where nearly 25,000 gaming professionals attended in October 2021. However, Miller now faces significant challenges, including a cost of living crisis, the growing online gaming sector, and competition from illegal markets.
Before the pandemic struck, Miller recalled the swift growth in legal betting since May 2018, a time when the limited nature of legal gaming seemed hard to believe. The Covid-19 pandemic dealt a serious blow, with 989 casinos in the US forced to close their doors, which led to tough decisions for operators. Miller was instrumental in ensuring that gaming companies were included in government relief packages, a crucial development he deemed a "significant milestone" for the industry, which had previously faced discrimination.
As casinos reopened, the pent-up demand for entertainment was substantial. He noted that while traditional players returned, a younger demographic discovered casinos during the pandemic, which contributed to strong growth in 2022.
Alongside the resurgence of land-based casinos, both sports betting and iGaming sectors experienced astonishing triple-digit growth. In 2021, sports betting gross gaming revenue (GGR) soared 366.2% compared to 2019, reaching $4.3 billion. Although iGaming is currently limited to six states, it nearly matched sports betting in revenue at $3.7 billion. However, the rapid expansion has raised concerns among regulators and lawmakers regarding advertising practices and responsible gambling initiatives.
Miller noted that while ad numbers during the start of the 2022 NFL season were stable, spending rationalized as customer acquisition costs rose. He emphasized the importance of the AGA’s efforts in promoting responsible gambling, pointing to the Responsible Marketing Code on Sports Wagering created in 2019. This code modeled its guidelines after the alcohol industry’s long-standing advertising self-regulation, ensuring responsible messaging and targeted outreach. Miller also highlighted the "Have a Game Plan, Bet Responsibly" campaign, aimed at educating bettors on responsible gaming practices and safe gambling.
While a small segment of players may struggle with gambling issues, Miller stressed the industry's commitment to responsible gaming, which he called "the backbone" of the legal gaming framework. Miller recognizes the importance of education in moving bettors from illegal markets to legal ones, noting that illegal gambling presents a real threat to the regulated sector. A forthcoming AGA study reveals that Americans wager approximately $300 billion through illegal operators, resulting in an estimated $15 billion in lost revenue annually for the regulated market.
Miller advocates for consumer safety, asserting that addressing illegal gambling is crucial for communities, costing an estimated $4 billion in lost tax revenue. With the gaming industry growing, he maintains that it is essential to enforce regulations protecting consumers and confront illegal operators.
Looking ahead, Miller acknowledges persisting economic challenges stemming from rising interest rates and inflation, which could impact consumer spending on entertainment. Analysts expect that operators may experience a slowdown in the third quarter of 2022, but the industry remains optimistic about launching new markets for sports betting and igaming in the coming year.
Miller expressed excitement about ongoing collaborations between tribal operators and commercial counterparts, indicating that cross-ownership and partnerships are essential for evolving the industry. He concluded that the past three and a half years have been an exhilarating journey, from the industry's highs in 2019 to the lows of 2020 and now the recovery observed in 2022.
