As a result, airlines have faced unprecedented difficulties. The global pandemic has caused airlines to take on huge amounts of debt, which makes it difficult for them to invest again in their products. Imagine if we had the solution to airline long-term solvency right in front us. It would only take one change to make it happen.Airlines could make new revenue streams from inflight gambling. Entertainment would be available to consumers. Incentives would be given to airlines to install seatback video. This would also be a good deal for contractors. Las Vegas gaming companies could also form partnerships with struggling airlines, giving them access into a new market.Additionally, passengers can gamble with frequent flyer miles and cash, which could lead to a new pathway towards elite status.Although we have tried inflight gaming before there is one rule that prevents us from improving the experience and solvency of the airline.Gambling is prohibited on commercial US aircraft under the Gambling Devices Act of 1992 (also known by the Johnson Act, 15 USC 1171). However, for 32 years it was legal for foreign airlines to offer inflight gaming. Some have even experimented with it.Singapore Airlines conducted a two-month test in 1981 offering slot machines on its Singapore San Francisco route. They were so popular that they had to be moved back in the cabin. This caused service and egress issues due to too many people congregating. They weren't strong enough, either because they were lighter (less fuel consumption) All seven slots machines failed in their first run. Singapore Airlines revived the idea in late 1990s.Inflight gambling was tried by Swiss in the 1990s, but it was abandoned after the 1998 crash of Swissair Flight 111. This was due to arcing of the wiring in the aircraft entertainment system. Over the past 20 years, new systems have been significantly improved.Ryanair had announced that it would offer inflight gaming in 2005. CEO Michael OLeary even suggested that passengers would fly for free if the airline made money from games of chance. It never materialized.You can now gamble at airports that are legal for gambling. You can also place horseracing wagers with your credit card.Reno Airport Slot MachinesUS-Flag Cruise Ship Competitivity Act 1991 gave cruise ships that are US-registered the right to offer gambling. TWA and Northwest Airlines lobbyed for similar exemptions for airlines. The Gorton Amendment (49 USC 411311), which prohibited gambling on US-registered aircraft as well as any plane flying to the U.S., protected them from being left behind. Although it is not possible to do so under US aviation treaties this has not been proven. The exemption from the Gorton amendment was used by Swiss.The Gorton amendment states that foreign airlines cannot install, transport, operate, or permit any gambling device aboard an aircraft in foreign flight. However, the FAA has stated that it is permissible for an aircraft to fly to the U.S. with a gambling device installed as long as it's deactivated.Inflight gambling was studied by the Department of Transportation in 1996. It was largely concluded that it was acceptable, but not enough to recommend legalizing it. At the time, the Clinton Administration was proposing a nationwide study on the effects gambling had on people. The study found that airlines could make $1 million per plane if they offered gambling. This is $1.6 million in 2020 dollars, or $1.3 billion annually for an 800-flight airline. (Airlines argue that this could have an even greater economic impact.American Airlines no longer offers seat back video on its standard domestic product and Southwest Airlines now serves Hawaii, it is time to reconsider the inflight gambling ban. I have argued that advertising in lavatories could help fund larger and more comfortable inflight lavs, offering the chance to gamble via seat back entertainment.Flying more profitably means that more routes will be available and that more flights can be offered. This means that there will be fewer layoffs. It makes travel more affordable in a difficult economy. Michael OLeary was right to suggest that gambling in the skies supports lower airfares. However, more competition would drive down those fares but airlines would still be successful because they would make up the revenue (just like they do today via ancillary fees).I have spoken to more than one vendor who wants customers to be able to gamble online with frequent flyer miles. I have found that even though lawyers suggest that the use of their proprietary currency online wouldn't be against US law, airlines tend to be conservative. They would need to convince Department of Transportation first.Inflight gambling should be legalized so that we can gamble with miles and not cash. Delta is the most extreme of all the major carriers in fixing a value for their miles. They are willing to admit that they are worth one penny each.They have also been the most successful in selling non-flight services and products with their miles. In fact, they even openly discussed the possibility of using their miles to redeem for haircuts. It seems natural to use miles as a form of gambling currency.Who wouldn't want to make the airlines again profitable?
