In mid-March, the UK gaming industry – not for the first time – found itself feeling discriminated against. In a coronavirus business aid package aimed at boosting the UK economy and helping small companies, Chancellor of the Exchequer Rishi Sunak offered out a 'business rate holiday.'
He explained: "That means every single shop, pub, theatre, music venue and restaurant and any other business in the retail, hospitality or leisure sector, will pay no business rates whatsoever for 12 months."
Yet gambling was not initially included in said package. Indeed, the gaming sector was deemed a financial service rather than entertainment or leisure – puzzling just about anyone who has ever lost money gambling. Has spinning roulette, placing a wager on a sports match or playing a slot machine ever been considered by any player in history as a 'financial service?'
The decision prompted an outcry from analysts, some of whom presented their views to Gambling Insider, while the Betting and Gaming Council (BGC) wrote an open letter to the Chancellor, questioning the “frankly bizarre” decision.
But here was where common sense prevailed – and where there is perhaps hope for US casinos that now face a near-identical situation.
Following the reaction to its initial ruling, the UK Government did indeed U-turn on its decision, including gambling in its business rates holiday, a call openly welcomed by BGC CEO Michael Dugher.
The public will never truly know the motives behind the original policy but it is, naturally, quite possible there was an element of ideology involved, with the stock of UK gambling at what some consider an all-time low in terms of public opinion and reputation.
That sentiment, however, is not exclusive to the Houses of Parliament. In the US, American Gaming Association President & CEO Bill Miller recently accused the Small Business Administration’s (SBA) Payback Protection Program of being based on "antiquated, discriminatory policy."
In an open letter to President Donald Trump, he wrote: "These interim rules rely on antiquated, discriminatory policy that renders small gaming entities ineligible to receive critical loan assistance designed to help small businesses pay their employees.
"Making SBA resources available to size-eligible gaming businesses is the right thing to do. As it stands, the policy discriminates against these mainstream businesses and, more importantly, the hundreds of thousands of employees who rely on gaming for their livelihood.”
Currently, SBA regulations prevent any company generating more than one third of its gross annual revenue from legal gambling activities receiving any loans or aid.
Miller was not the only one to point this situation out, with the Nevada congressional delegation also recently writing to House and Senate leadership.
The letter read: "Many of our casinos – including hotels – are small businesses and employ many tens of thousands of employees across our state, making up the backbone of Nevada’s economy."
Given Trump’s ties to and history with the casino industry, it would be a surprise were the US President not to amend the situation, helping firms Miller rightly points out provide a huge boost to the US economy. Although nothing is certain in politics.
"I will take a look at that strongly," Trump told reporters at the White House. "Nobody’s told me about it."
The UK’s recent U-turn shows there would be very recent international precedent for a reversal. In fact, the two situations have quite a few parallels. For once, perhaps events in the UK have provided some hope for the US. In gaming, it’s usually the reverse.
Whatever happens with the Payback Protection Program, though, the coronavirus pandemic has shown gaming is, unsurprisingly, low down on government priority lists. And, whether in the US or UK, it's shown the industry has to be more prepared than ever to fight tooth and nail for the recognition it deserves; especially with the added woe of COVID-19.
