The latest study for the American Gaming Association (AGA) shows that the casino gaming industry annually generates almost $329 billion in economic activity to significantly contribute to the U.S. economy. According to the press release, the study conducted by Oxford economic on behalf of AGA shows that the industry supports 1.8 million jobs, provides $104 million of wages and salaries, and generates almost $53 billion in tax revenues to federal, state, and local governments.
26% Larger Impact on US Economy:
Associated Press reports that the study released on October 9, 2023 shows that the gaming industry’s share in the US economy rose by 26% in 2022 in comparison to the pre-pandemic year 2017. As reported, the industry currently employs more than 700,000 Americans at commercial and tribal casinos or related operations. While this number of the directly employed is the same as in 2017, these jobs now generate $104 billion in wages to stand for a 40% higher level than in 2017, as Associated Press reports. Also, the industry reportedly paid $52.7 billion in taxes in 2022, which is 29% more than in 2017.
AGA President and CEO Bill Miller reportedly stated: “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.” Miller also said that the casino industry showed ”resiliency and strength” from the beginning of the pandemic, as Associated Press reports. “Think back to where we were a few years ago with nearly 1,000 casinos, almost all of them closed,” he reportedly said. “Today, we’re seeing record revenue in the industry.”
2023 Revenues to Exceed the 2022 Record:
The same source reports that the CEO said the association will use the survey data to pursue gambling industry goals before the lawmakers, with the termination of unlicensed gaming operations being one of the goals. The goal seems driven by the fact that the U.S. casino industry generates the record revenue in 2023. According to Associated Press, the current industry trend indicates that the last year’s $60 billion profit will be exceeded by the end of 2023. Therefore the gaming industry stakeholders promote licensed operations to draw customers and prevent money leakage to illegal operators.
Such a policy can result in the increased customer confidence consequently boosting the economic indicators. “I think it speaks to the continuing popularity of casino gambling in the United States,” David Schwartz, a gambling historian at the University of Nevada Las Vegas reportedly said. “Despite some economic headwinds, casinos remain powerful drivers of economic activity.”
Jane Bokunewicz, director of the Lloyd Levenson Institute at New Jersey’s Stockton University, who studies the Atlantic City gambling industry, reportedly said that the money won by casinos is also used to contribute to the occupational and community benefits. “Casinos are often the largest employers in a region, with major commitments in terms of wages and benefits,” she reportedly said. “People employed by casinos use those wages and benefits to purchase additional goods and services, generating secondary economic impact.”
As Associated Press reports, the AGA survey included gambling and gambling-related operations, like restaurants and stores hosting retail gambling facilities, as well as capital investment in casino property developments and restorations, and so-called catalytic spending by casino patrons for transportation or catering purposes outside casinos. The survey reportedly finds that the catalytic spending amounted to $13.5 billion in the gambling-related facilities in 2022.
$16.3 Billion Paid for Wages and Benefits:
The same source reports that commercial casinos employed almost 332,000 workers in 2022 and paid around $16.3 billion in wages and benefits. At the same time, tribal casinos reportedly employed almost 265,000 workers and paid $8 billion in wages and benefits. Out of the total of 700,000 casino jobs in the States, almost 89,000 jobs served casino patrons during travels or casino revamps and developments, and around 23,000 jobs were supported in gambling equipment manufacturing companies.
$56 Billion of Non-Gaming Revenue
As a result, non-gambling properties including restaurants and hotels generated almost 17% of the casino industry’s gross revenue or around $56 billion out of the total of $329 billion generated by the industry in 2022. At present, casino industry is heading towards a new record annual handle to contribute to the US economy at even a larger scale in the forthcoming period.