Almost $329 billion in annual economic activity is generated by the casino gambling business in the United States, according to a recent report by the sector's national trade group.
The Industry's Resilience, Unyielding Strength
On Monday, October 9, the American Gaming Association published a report demonstrating that the industry's economic effect in 2022 was 26% greater than in 2017, when the COVID-19 pandemic occurred.
Many people found employment in the casino industry last year, with 1.8 million people benefiting from commercial and tribal casinos. The total compensation paid out as a result of these positions was $104 billion in 2022, up 40% from 2017.
A total of $52.7 billion was paid in federal, state, and local taxes by the sector the previous year, a 29% increase from 2017.
Despite the pandemic's initial effects, the casino sector has shown "resiliency and continued strength," according to the gaming association's president and CEO, Bill Miller. "Think back to where we were a few years ago with nearly 1,000 casinos, almost all of them closed. Today, we're seeing record revenue in the industry."
According to AP News, Miller said the survey's results will be used to lobby politicians in support of the sector's objectives, such as a crackdown on illegal gambling enterprises.
In terms of revenue, this year has been the most successful for casinos in the US. It is well on its way to surpassing last year's record-breaking gambling income of $60 billion.
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How the Sector Drives Economic Development
David Schwartz, a gambling historian at the University of Nevada Las Vegas, believes this trend reflects the lasting appeal of casino gambling in the US. Casinos are significant engines of economic growth, even as the industry faces certain challenges, he told AP News.
Professor Jane Bokunewicz, who heads the Lloyd Levenson Institute at New Jersey's Stockton University and conducts research on the Atlantic City gambling sector, has said that casino revenue is just a small fraction of the entire economic impact of the industry.
"Casinos are often the largest employers in a region, with major commitments in terms of wages and benefits. People employed by casinos use those wages and benefits to purchase additional goods and services, generating secondary economic impact," she explained.
Bokunewicz added that casinos spend a lot of money on things like meals, accommodation amenities, laundry and cleaning services, and building maintenance. They also use regional contractors and suppliers for the construction and maintenance of existing facilities.
The poll looked at conventional casino games, sports betting, and internet gambling, as well as the money players earned or spent at non-gaming casino businesses, including restaurants and shops. Capital expenditures were also analyzed, as were the expenditures of gambling equipment manufacturers.
Spending by casinos' supplier chains and employees on non-gaming necessities was also mentioned. Not only did this total $13.5 billion, but it also accounted for catalytic expenditure by casino visitors at non-casino businesses like taxis and restaurants.
