The American Gaming Association (AGA) has published its annual survey of casino entertainment in the United States. This 10th report, detailing national and state-by-state economic impact of commercial casinos, shows that the acceptance of casino gambling by the US public remains high. In commemoration of the 10th anniversary of the survey, the AGA examines the growth of the gaming industry over the past decade.

Consumer spending on commercial casino gaming rose 5.3% last year and has increased 73% from a decade ago. The casino industry achieved steady growth in 2007 although a slowing national economy may alter that this year. Consumer spending in every state except New Jersey increased or remained relatively constant. Iowa and Mississippi were the only two states to show double digit growth, 16.2% and 12.5% respectively.

In 2007 for the first time there were seven US casino markets with gross gaming revenues over US$1 billion. The largest increase was in Biloxi, Mississippi. Las Vegas Strip and Atlantic City still top the list by far, with the Chicago areas in Illinois and Indiana third. Gross gaming revenues reached US$34.13 billion in 2007, and of that total, more than US$5.79 billion was returned in the form of direct gaming taxes to the cities and states where commercial casinos are located.

Racetrack casino tax contributions increased in eight of 11 states, with the largest increases occurring in Pennsylvania (2555%) due to the opening of three new properties and Florida (1862%) with one new property. New York also saw a large increase in tax revenue (106.4%) because 2007 was the first full year of operations for several properties that opened there in 2006. Consumer spending at racetrack casinos topped $5.2 billion in 2007, a 45.6% increase over 2006 figures.

The survey reports that over the past 10 years, the commercial casino industry has witnessed impressive growth by all measures. Employment and wages have increased, tax contributions have more than doubled and each of the 11 states that had commercial casinos in 1998 also has seen significant increases in its gross gaming revenue over that period.

One-quarter of the U.S. adult population visited casinos in 2007, and they made more visits to casinos than in any previous year (6.9 trips per gambler). Playing the lottery headed the forms of gambling in 2007 (48%) followed by casinos (29%). The percentage of male gamblers compared to female increased in 2007 to 31%-25%. Slot machines remain the favourite casino game with blackjack second in popularity. Of other casino games only poker, craps and roulette received any significant support.

Commercial casino visitors seem to be enjoying the increasingly diverse and expanding array of entertainment options available at casinos. During their casino visits the past year, 72% ate at a fine dining restaurant, 48% saw a show, concert or other live entertainment option, and 42% went shopping or visited a bar or night club (also 42%). According to survey results, an overwhelming majority (84%) of gamblers always set a budget before they start gambling. Half set budgets of less than US$100 and another quarter limit themselves to under US$200.

The income differential between the U.S. population and U.S. casino customers remains significant, with casino players earning approximately 16 percent more than the average American. In 2007, the typical casino customer was one year older than the average American, mirroring 2006 figures, and slightly more likely to have attended college than the typical American.

According to the AGA survey, Americans strongly defend states’ rights to regulate gaming within their borders. Almost nine out of 10 survey respondents agreed that people in individual states and communities should be allowed to decide what is best for them with respect to casino gaming. More than two-thirds of survey respondents agreed that casinos bring widespread economic benefits to other industries and businesses. However, in 1999 57% of respondents thought casino gambling was perfectly acceptable for anyone whereas this is now the view of 49%. Over the decade respondents believing that casino gambling is unacceptable for anyone has remained fairly constant – 15% in 1999, 14% last year.

It was at the end of 2007 that the economic slowdown started to impact revenue at many US casinos. This survey details the wave of capital investment that was set to take place in gaming communities from Las Vegas to Atlantic City, and from Detroit to Biloxi - over US$53 billion in capital investment nationwide. The AGA’s 2008 casino survey could paint a very different picture.
(E-05.15.08)

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