Once more, the spotlight shifts to the casino industry as it thrives in the nation, surpassing the prominence of U.S. sports betting. A recent study has unveiled the substantial economic influence of this industry, estimated at more than $328 billion annually.
Best Year Ever
Considering the devastating effects of the global pandemic just a few years ago that shuttered casinos across the country, the most recent report studying the state of the casino gaming industry is nothing short of miraculous.
Bill Miller, President and CEO of the American Gaming Association (AGA), said the data shows the casino industry’s “resiliency and continued strength” since COVID-19 wreaked havoc. “Think back to where we were a few years ago with nearly 1,000 casinos, almost all of them closed,” he said. “Today, we’re seeing record revenue in the industry.”
And that record revenue Miller is referring to concerns 2023 being on pace to surpass the $60 billion casinos won from their customers last year. It is a staggering amount of money when we consider that the entire industry was in tumultuous waters throughout the last nine months of 2020, lingering into 2021.
“I think it speaks to the continuing popularity of casino gambling in the United States,” said David Schwartz, a gambling historian at the University of Nevada Las Vegas. “Despite some economic headwinds, casinos remain powerful drivers of economic activity.”
Jobs, Wages, and Tax Revenues Soar
The AGA estimates that the casino industry generates over $328 billion when factoring in the 700,000 jobs found at commercial and tribal casinos as well as 1.1 million more in related businesses for a total of 1.8 million jobs. Those jobs delivered $104 billion in wages across the nation which is up a whopping 40% from 2017.
Federal, state, and local governments are also big winners as they received a combined $52.7 billion in taxes from the casino industry which was up 29% from the last time the study was conducted in 2017.
“The U.S. gaming industry delivers long-term growth and impact to communities, generating significant tax revenue, creating strong jobs, supporting local small businesses, and funding critical community priorities,” the AGA’s Bill Miller during his “State of the Industry” remarks at G2E 2023.
Reverberating Effects
The supply chain required to keep the casino industry moving and catering to its customers whether it be in the transportation, hospitality, or construction sectors, to name just a few, is bolstered by its association with the casinos.
Jane Bokunewicz, Director of the Lloyd Levenson Institute at New Jersey’s Stockton University, which studies the Atlantic City gambling industry, spoke about the secondary impact that casinos trigger.
“Casinos are often the largest employers in a region, with major commitments in terms of wages and benefits,” she said, according to the Associated Press. “People employed by casinos use those wages and benefits to purchase additional goods and services, generating secondary economic impact.”
Non-gambling revenue accounted for nearly 17% of casino revenue last year which included the hotel revenue produced by the restaurant industry for food and beverages, hotel lodging, and ancillary businesses such as gambling equipment manufacturers that employ over 23,000 workers.
It was also found that 41% of the population (102 million Americans) visited a casino over the past 12 months which is up significantly from 28% in 2021.
Calculators
