Harrah’s boss says gaming industry gets a bad rap

By Amanda Finnegan

Wednesday, Nov. 17, 2010 | 8:31 p.m.

Harrah’s Entertainment Chief Executive and President Gary Loveman said a major roadblock in the path of the growth of casino companies is misinformation about the industry.

Rather than talk about the industry’s recovery, Loveman used his afternoon keynote address at the Global Gaming Expo Wednesday to campaign against the misconceptions that surround the casino industry. He made no mention of the Las Vegas-based operator’s progress or future plans during his address.

“The vast majority of people cannot conveniently access our services, and that is a big problem. People who want to use our services have to get on an airplane, make an international trip or drive hours for something that we could provide,” Loveman said.

“It should offend us every day that adults can’t entertain themselves in the way that they want to when they have access to so many other things.”

While products like fast food and liquor that are viewed as unhealthy are available almost everywhere in the U.S., casino companies only operate in 13 states, Loveman pointed out.

When businesses like McDonald’s want to expand to other markets, they don’t need the approval of politicians. Casino companies do, Loveman said.

Politicians often limit the growth of gaming because of the misconceptions that casino companies prey on the poor, breed crime, foster addiction and contribute to cultural deterioration.

Loveman said he hears the same argument over and over when it comes gambling: It is inherently nefarious and criminal. Hollywood has perpetuated those stereotypes with movies like “Casino,” Loveman said.

Loveman said he’s “worked in this job 13 years and I’ve never lived a day like ‘Casino,’” but the images still have a profound effect on the image of the industry.

Noting some of the positives casinos bring to the areas in which they operate, Loveman said Tunica, Miss., has seen a 800 percent increase in employment since Harrah’s opened a casino in the area in 1996.

The Harrah’s casino in Chester, Pa., has contributed to the $500 million that casinos have generated for the state.

Loveman said casino companies have contributed to their own obstacles. When an operator is trying to enter a new market, competing casino companies will often fund advertisements preaching the same misconceptions that the industry is trying to combat. Loveman used the example of the “Against Slots in the Mall” campaign that ran this fall in Hanover, Md.

To combat the stigma, Loveman urged gaming professionals put the interest of the industry first, not just the interests of their own company.