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American Gaming Association
Bill Miller, President and CEO
For decades, the gaming industry served as an economic engine—supporting millions of jobs, generating community investment through vital tax revenue, and supporting small businesses across the country. Casino gaming supported $41 billion in annual tax revenue and tribal revenue sharing nationwide – essential funding for local hospitals, first responders, and vital public services like education and infrastructure.
Our dynamic industry came to a standstill in March as the COVID-19 pandemic indiscriminately hurt gaming businesses, employees, and communities. All 989 commercial and tribal gaming properties shut down and sportsbooks went dark, which decimated demand for gaming suppliers’ innovative products. For several months, these closures cut off a major economic driver in communities across 44 states, idled an estimated 652,000 casino gaming employees, and significantly impacted the 350,000 small business employees that rely on gaming. The American Gaming Association (AGA) estimates this period cost the economy $43.5 billion in economic activity.
Despite the economic uncertainty, our industry did not let up on our commitment to our employees and communities. Gaming operators and suppliers stepped up, establishing employee and community relief funds, donating tons of foods to our communities, lending our facilities for testing, and securing critical resources for first responders and essential workers.
As we welcomed customers and employees back, the gaming industry led the way for responsible reopening by implementing strict safety protocols, adhering to evolving state and local health regulations, and investing millions of dollars in innovative solutions to promote health and safety. We also serve as a key source of testing and contact tracing in many gaming communities, where we are helping to slow the spread of COVID-19.
Our industry continues to suffer as we await a nationwide vaccination program. The significant decline in leisure and business travel poses an uncertain future for conventions and live events, and cripples the outlook from other sources of gaming revenue such as restaurants and retail.
While we to face new closures and restrictions as the country navigates continued viral spread, gaming revenue—the heart of our business—is down more than $12 billion, or 33.5 percent, year-over-year through October. Behind that number are the faces of gaming employees and communities who bear the consequences of this unparalleled economic crisis in their daily life. This decline would have been more severe had it not been for sports betting and iGaming demand, which saw combined revenue grow 101 percent over the same period in 2019.
America’s economic recovery—and that of communities across the country—can be accelerated with a thriving gaming industry. The AGA is pushing for urgent action from our leaders in Washington to address this economic crisis by providing temporary liability protections for responsible businesses, additional tax relief to incentivize employee retention and rehiring, and support for tribal communities that have been disproportionately impacted by the pandemic.
American Hotel & Lodging Association
Chip Rogers, President & CEO
2020 was the single most devastating year in the history of the hotel industry. Both hotel occupancy and revenue levels were at record lows last year. Leisure travel was a saving grace over the summer, but the reality is that fewer people today are traveling, with occupancy down one-third nationwide compared to the previous two years. Until a vaccine is widely available, that is unlikely to change.
In a November 2020 survey of AHLA members, 71% of hoteliers said they would not make it another six months without further federal assistance given current and projected travel demand, and 77% said they would be forced to lay off more workers. Sixty-three percent (63%) of hotels have less than half of their typical, pre-crisis staff working full-time today. Nearly half (47%) of hoteliers expected to close hotels without additional government support.
Fortunately, we expect the COVID relief package passed by Congress in December 2020 will provide a critical lifeline for hotels and other businesses that have been decimated by the pandemic. This temporary relief over the next few months is expected to help thousands of hotels stay open and retain and rehire employees.
Even so, hotels are bracing for a difficult winter. Business and group travel, which are the largest source of hotel revenue, are especially important in the winter months—yet these areas remain nearly non-existent during the pandemic. Just 8% of Americans have traveled for business since the pandemic began, and only 8% expect to do so in the next six months. Business and group travel are not expected to return to pre-pandemic levels until 2023.