Gaming Association pitches for regulatory reform at G2E

The American Gaming Association is seeking reforms in gaming regulations nationwide to help the industry keep pace with evolving technology.

Frank Fahrenkopf, president and CEO of the association, said Tuesday the organization’s white paper, “Improving Gaming Regulation: 10 Recommendations for Streamlining Processes While Maintaining Integrity,” is designed to educate lawmakers and regulators nationwide about eliminating government red tape while keeping important restrictions in place.

“We don’t want to do away with regulations,” Fahrenkopf said in a briefing at the second day of the four-day Global Gaming Expo at the Venetian. “Regulation needs to evolve and we just want to improve the licensing process and modify or eliminate red tape.”

Fahrenkopf also announced the issuance of a new report explaining the economic impact of the casino industry and gave updates on a variety of issues, including the growth of gaming in Macau, the likelihood of federal legislation legalizing online poker and the recovery of the industry from the recession.

Celebrity appearances also were a part of G2E, the nation’s largest casino industry gathering.

Actor Dan Aykroyd, who starred in “Ghostbusters,” opened the trade show floor of G2E, and Rio performer Penn Jillette gave the opening keynote address.

IGT is unveiling a “Ghostbusters”-themed slot machine at the event and was one of the 440 exhibitors showing the newest gaming products on a trade-show floor the size of two and a half football fields.

Jillette, the vocal half of the Penn & Teller illusionist team, juggled broken bottles and flaming torches and performed fire-eating and power-hammer routines while sharing stories that had little to do with the gaming industry. About the only connection he offered was that he thinks he gets the same thrill performing a risky stunt that a gambler gets when he wins.

He also gave the G2E audience a preview of his new television series on the Discovery Channel, “Penn & Teller Tell a Lie,” in which the duo discusses a series of scientific oddities — and one lie — and it’s the audience’s objective to determine which story is the lie. The show debuts Wednesday night.

The Gaming Association’s 19-page white paper on regulatory reform was authored by David Stewart, an expert on gaming law, money laundering, antitrust and health care law, and cable television litigation.

The association’s report on the industry’s impact on the economy, prepared with the Washington-based Brattle Group, explains how in 2010 the industry generated $49.5 billion in consumer spending in operations, but an additional $75.6 billion in spending through various industry suppliers.

The report estimates that the industry has produced 400,000 jobs nationwide and 475,000 more for suppliers and auxiliary companies.

Fahrenkopf said the association continues to be optimistic about the prospects of the passage of federal legislation that would legalize online poker. A year ago, the association opposed Internet gambling legalization, but it has changed course because industry leaders believe there are enough safeguards to restrict games to legal players.

The recent scandal involving accusations of impropriety by Full Tilt Poker is “an unfortunate cautionary tale” that Fahrenkopf said proves the need for an online regulatory environment.

“The need for tough enforcement is clear,” he said.

Fahrenkopf said the industry continues to recover from the recession with overall gaming revenue up 3.5 percent over last year through July and 4.35 percent in that period in Nevada.

The 10 recommendations noted in the report:

• Extend license terms for at least five years.

• Extend use of uniform licensing applications.

• Allow waivers from licensing or registration requirements for institutional investors holding less than 25 percent ownership of a licensee.

• Extend use of shelf approvals for debt transactions and public offerings.

• Eliminate requirements for registration of outside directors.

• Eliminate unnecessary regulatory filings.

• Update licensing procedures and practices.

• Eliminate prescribed minimum internal control standards.

• Eliminate prior notice or pre-approval of the shipment of slot machines.

• Reduce the number of pre-approvals for slot machines.