The federal government, from the White House to the U.S. Congress, is initiating billions in funding to aid industries that have ground to a halt because of the current Covid-19 crisis.
With the gaming and hospitality industry likely to be one of the hardest-hit, the American Gaming Association and industry leaders are lobbying to be part of those stimulus packages.
As casino operators seek relief for the millions lost as they shut their doors, interrupt capital projects and budget money to pay their employees, the industry’s supply sector faces equal challenges. Marcus Prater, executive director of the Association of Gaming Equipment Manufacturers (AGEM), is working with AGA President and CEO Bill Miller to ensure the supplier sector is included in any federal stimulus aid.
“We’ve had behind-the-scenes conversations with Nevada’s congressional delegation so they’re not forgetting suppliers when it comes to these stimulus-package discussions, simply because of the important role we play in the Nevada economy and in the gaming industry overall,” Prater told GGB News. “Bill Miller and I spoke today, and we’re committed to pushing for the suppliers to be included in any federal stimulus packages and continuing to work together as the industry recovers.”
Prater says the officers of AGEM—leaders of many of the top industry suppliers—have been communicating on each new development in the crisis and working on a big-picture plan going forward.
“It’s so fast-moving,” Prater said, “that for each of the AGEM officers—which serves as our executive committee—their primary headache is related to their own individual companies, but certainly the officers are united, and have been in regular contact over any specific action.”
One subject being discussed at the state level, he said, is whether or not the 30-day casino industry operational shutdown imposed by the board applies to suppliers. “We got confirmation from the governor and Chair (Sandra Douglass) Morgan of the Nevada Gaming Control Board that licensed manufacturers are not subject to these closures over the next 30 days, and we sent that news out to the AGEM membership,” Prater said. The governor and the NGB chairwoman “are telling the gaming suppliers that their manufacturing facilities are not subject to any closures.”
Prater added that AGEM officers are personally pursuing solutions directly with state officials. “Some of the officers have taken it upon themselves to communicate with different stakeholders,” Prater said. “The confirmation we got from the governor last night was the result of direct communication between the governor and (AGEM Vice President) Tom Jingoli. The information we got from Chair Morgan was from direct communication between AGEM President Luke Orchard of IGT and Chair Morgan.”
Suppliers declined to comment directly for this article, most citing the fluid nature of the situation. Prater agrees it’s still very early in the game to be drawing any long-range conclusions.
“When our customers shut down, they don’t have as much money to spend on buying anything, but it’s too soon to know (the long-range effect),” he said, “When we reach 30 days in Nevada, I don’t pretend to think you’re going to turn on the lights and there’s going to be a return to business as usual. It’s going to take some time.
“But we’re doing our best to follow it. As in the case of 9/11 and the October (2017) shooting, our industry is united, and will be united, and will work together to get through it.
