Understanding the Economic Powerhouse of the U.S. Casino Gambling Industry
In a groundbreaking study, the American Gaming Association has shed light on the astounding economic impact of the U.S. casino gambling industry. This thriving sector contributes nearly $329 billion to the nation’s economy each year, painting a remarkable picture of its economic significance.
A Soaring Economic Impact
The study’s findings, released in 2022, highlight the industry’s impressive growth. It has recorded a staggering 26% increase in economic impact since 2017, a period preceding the onset of the COVID-19 pandemic. This resilience and growth testify to the casino industry’s continued strength.
A Source of Employment and Prosperity
Commercial and tribal casinos play a pivotal role in supporting the U.S. economy, providing employment to 1.8 million individuals. Within this workforce, 700,000 jobs are directly tied to the casinos or related businesses, maintaining a steady figure from 2017. These jobs collectively generate a substantial $104 billion in wages across the country, marking a significant 40% increase since 2018.
Boosting Government Revenues
The casino industry significantly contributes to government finances, having paid a total of $52.7 billion in taxes last year to federal, state, and local governments. This represents a remarkable 29% increase in tax revenue since 2017.
A Return to Record-Breaking Revenues
The American Gaming Association’s study underscores the casino industry’s “resiliency and continued strength.” It vividly portrays the industry’s ability to bounce back from the challenges posed by the COVID-19 pandemic. Today, it is experiencing record-breaking revenue figures, marking its best year ever.
Advocating for Industry Goals
Bill Miller, the president and CEO of the American Gaming Association, stated that the association would utilize the study’s data to advocate for the casino industry’s goals among lawmakers. This includes efforts to push for government intervention in tackling unlicensed gambling operations.
A Testament to Casino Gambling Popularity
In terms of money generated from gamblers, the U.S. casino industry is on track for its most successful year to date. It is poised to surpass the $60 billion earned from gamblers in the previous year, highlighting the enduring popularity of casino gambling in the United States.
Casinos as Economic Drivers
David Schwartz, a gambling historian at the University of Nevada Las Vegas, emphasized that casinos remain powerful drivers of economic activity. Despite economic headwinds, the casino industry continues to thrive and shape the nation’s economic landscape.
A Holistic Economic Contribution
Jane Bokunewicz, director of the Lloyd Levenson Institute at New Jersey’s Stockton University, stated that the money won by casinos is just one facet of their broader economic contribution. Casinos often serve as the largest employers in their regions, making significant commitments in terms of wages and benefits. Employees, in turn, utilize these earnings to support additional goods and services, thereby generating secondary economic impact.
Beyond Gaming Revenues
Casinos extend their economic influence through substantial spending on operating costs. This includes the purchase of goods and services such as food, linen, hotel room amenities, laundry services, and building maintenance. Additionally, casinos contribute to various industries by hiring local builders and vendors for construction, renovations, and capital improvements.
An In-Depth Survey
The study’s scope is comprehensive, encompassing various aspects of the industry’s economic activities. It examined money generated from gambling and spending at non-gambling casino businesses, which includes expenditures on traditional casino games, sports betting, and online gambling. Additionally, the study delved into capital investment, covering the construction and renovation of casinos and the manufacturing of gambling devices, including slot machines.
A Complete Picture of Economic Impact
The survey didn’t stop at the primary activities within the casino industry but also explored the supply chain spending by casinos and the spending by casino employees on non-gambling items. Notably, it included $13.5 billion in what is termed “catalytic spending” by casino patrons outside casinos. This comprises spending on transportation to and from a casino resort, as well as expenditures at restaurants that are not affiliated with casinos.
Diverse Job Creation and Non-Gambling Revenues
The casino industry’s positive influence extends to employment generation. Commercial casinos employed nearly 332,000 individuals in the past year, earning wages and benefits totaling $16.3 billion. Tribal casinos also made significant contributions, employing almost 265,000 individuals who earned $8 billion in wages and benefits. Moreover, businesses serving casino patrons during their trips or involved in casino construction and renovations provided jobs for almost 89,000 individuals. The gambling equipment manufacturing sector added more than 23,000 jobs to the economy.
Diversification in Revenue Sources
Non-gambling revenue, including earnings from food and beverage sales, hotel accommodations, and other services, contributed nearly 17% of casino revenue in the past year. This diversification highlights the multifaceted economic contributions of the industry, further solidifying its position as a significant driver of the U.S. economy.
