New gaming convention looks like success despite attack aftermath

David Strow

Tuesday, Oct. 2, 2001 | 9:29 a.m.

The American Gaming Association probably could not have picked a colder time to launch its inaugural trade show, the Global Gaming Expo (G2E).

The show is the first since the AGA split with the World Gaming Congress and Expo, traditionally the largest gaming industry trade show of the year with more than 20,000 attendees. That show, produced by GEM Communications, is set to begin in just two weeks.

The World Gaming Congress had become best known as the annual showcase used by slot manufacturers to officially unveil their new slot products; G2E has been aiming to usurp that role. At G2E, for example, WMS Gaming highlighted its new "Hollywood Squares" slot with the help of actress Whoopi Goldberg; Alliance Gaming Corp. got the help of singer Ray Charles for its own new slot line.

The terrorist attacks of Sept. 11 caused many Las Vegas conventions to cancel or re-book, and there were concerns the wind would be taken out of G2E's sails. But as the show got under way Monday at the Las Vegas Convention Center, show organizers say they're ahead of even their pre-attack expectations.

"We just blew the roof off," said Frank Fahrenkopf, chief executive of the AGA.

Initial projections called for 80,000 to 85,000 square feet of exhibit space, 6,000 pre-registered attendees and 200 exhibitors, Fahrenkopf said.

As the show begins, G2E has leased out 138,000 square feet of exhibition space. About 375 companies have signed up as exhibitors, and the show has 10,000 pre-registered guests.

Since not all of the pre-registered guests will actually attend -- and because walk-up numbers aren't yet available -- it isn't known how many people are actually attending this year's show, though officials with show organizer Reed Exhibition Cos. expect it will exceed the 7,000 mark they had originally set. Three thousand registered after the attacks occurred.

"It's far beyond anything we anticipated," Fahrenkopf said. "We've gotten the support of most major gaming organizations in the world. New registrations were flat (after the attacks), but picked up a few days later."

"These folks (gaming industry executives) all rely on travelers," added Lorenz Hassenstein, vice president with Reed Exhibition. "They're leading by example (by traveling to Las Vegas)."

There has been a low-level war of words between the AGA and GEM Communications after negotiations between the two over the World Gaming Congress broke down last year. Fahrenkopf continued that verbal sparring Monday.

"I wish them well, because anything that brings people to Las Vegas is good for the (gaming) industry," Fahrenkopf said. "But I would be very surprised if they're going to be as successful as their (publicity) suggests."

In response, World Gaming Congress organizers merely said they were pleased gaming industry officials still appeared committed to come to Las Vegas for conventions.

"We look forward to being host to thousands of people from all around the world, as well as thousands more from Southern Nevada," said Brian Vargas, senior vice president of trade shows for GEM Communications. "We're very encouraged by the commitment that people in the gaming industry worldwide have made to proceeding with their plans to travel to Las Vegas, to come together for the (World Gaming Congress)."

In an effort to get all business travel going again, Fahrenkopf said the AGA is backing proposals to make business travel 100 percent tax-deductible. Currently, only 50 percent of business travel costs can be deducted.

This is expected to be attached to a general economic stimulus bill that could contain such provisions as tax cuts and hikes in the minimum wage.

The gaming industry, particularly Las Vegas casinos, have been rocked by the sudden downturn in tourism and air travel -- Fahrenkopf said he had seen estimates that the Las Vegas economy had taken a $250 million hit from the September drought. But rather than proposing specific measures that would help stimulate the gaming industry, the AGA decided to back broader measures that would benefit the entire tourism sector.

"We feel anything we can do to get airlines flying again and help the tourism industry in general ... is in the best interests of the (gaming) industry," Fahrenkopf said.