Frank J. Fahrenkopf, Jr., AGA President and CEO presented the 2010 edition of State of the States, stating that the “U.S. commercial casino industry was a valuable contributor of jobs, taxes and economic development nationally and in the states and local communities where it operated, despite recent economic challenges. The entire country was in the grip of a crippling recession last year, and the gaming industry certainly was not immune to its effects on consumer spending.”

Fahrenkopf added: “As it has for the previous 11 years, State of the States offers readers a comprehensive look at the commercial casino industry, with national and state-by-state economic impact data, such as gaming revenues, tax contributions, employment and wages for the 13 commercial casino and 12 racetrack casino states in the U.S.

“One of the best ways to fully understand the impact of casinos on local communities is to talk to the people who live with them every day, and this year’s State of the States survey did just that. A survey of residents of casino counties found that strong majorities of those polled see casinos as important parts of their local communities, providing satisfying jobs, generating tourism, and providing taxes and economic development during difficult times.

In addition to data on the attitudes of casino county residents, this year’s public opinion polling covers the overall acceptability of casino gambling, the budgeting and visitation habits of casino patrons, and whether a night out at a casino is considered a good value compared with other entertainment options. This year’s State of the States report also includes special sections focusing on poker and sports betting, a detailed chart of the various forms of gaming across the country and a pocket guide of key facts.

AGA’s aim in producing the State of the States 2009 report is to provide a comprehensive information resource about the important role the U.S. commercial casino industry plays in the economies of communities nationwide, and I’m confident we have reached that goal, and below a few salient excerpts of this valuable report.”

National Economic Impact of Casino Entertainment
As the United States grappled with the worst recession in a generation during 2009, consumers cut back on their discretionary spending, and those shrinking travel and leisure budgets led to a decline in gross gaming revenues for the second consecutive year. Nationwide revenues fell to $30.74 billion in 2009 — 5.5 percent lower than 2008’s figures.

As consumers grappled with the deep economic recession in 2009 and gamblers tightened their budgets, eight of 13 commercial casino states saw their gross gaming revenues decline. New Jersey took the biggest hit (-13.3%) due to the recession and increased regional competition, while Nevada experienced the second largest decrease (-10.4%) as consumers cut back on travel to gaming destinations like Las Vegas.

The 2009 opening of two new casinos drove Pennsylvania’s increase (+21.6%), and Indiana saw an increase (+4.9%) because 2009 was the first full year of operation for two properties there. Missouri (+2.9%) and Colorado (+2.6%) experienced smaller, but still significant, increases due to changes in gaming laws that removed loss limits in Missouri and relaxed bet limits while increasing hours and the types of games offered in Colorado casinos.

In 2009, commercial casinos returned nearly $5.59 billion in revenues to states and local communities through direct gaming taxes. Despite representing a 1.6 percent decrease from 2008 contributions, those tax revenues helped states and localities pay for important programs and services during a time when many states faced deep budget deficits. Additionally, the gaming industry continued to be a major employer, as 328,377 people worked at commercial casinos during 2009, earning $13.1 billion in wages, benefits and tips.

Consumer spending at racetrack casinos rose in 2009 to $6.40 billion, a 5.0 percent increase over 2008 figures. Gaming tax contributions from racetrack casinos also increased during 2009, with $2.63 billion in gaming taxes being returned to state and local governments — a 1.2 percent increase that was vital during a time when most state and local governments struggled to balance their budgets.

Gaming Equipment Manufacturers
During 2009, the gaming equipment manufacturing sector of the U.S. gaming industry generated significant revenue, supported tens of thousands of employees and paid billions of dollars in wages despite the national economic climate. Research and analysis conducted by Applied Analysis on behalf of the Association of Gaming Equipment Manufacturers (AGEM) demonstrates the relative strength of the sector as a whole. Direct revenue sourced to the industry totaled $12.1 billion during 2009, a 4.7 percent decrease compared to 2008 figures. Direct employment rose slightly (+1.4 percent) to 30,000 with salaries and wages totaling $2.1 billion.

There are nearly 833,000 electronic gaming machines at commercial casinos, tribal casinos and non-casino locations across the United States. Nevada has the largest number of machines with more than 191,000, while California and Oklahoma are second and third on the list with more than 67,000 and 54,000 machines, respectively.

Poker’s up and down course
Poker is a popular game among people of all ages and skill levels, whether they are playing in a casino, a card room, a living room or online. While the “poker boom” reached its peak in 2005 (18%), the popularity of the game still is evident in televised tournaments and the rebound in participation levels in 2009, which reversed a three-year slide, and took it back from 11 to 15%.

While poker revenues in both Nevada and New Jersey decreased in 2009, the popularity of the game in each state can be seen in the resiliency of poker revenues compared to steeper declines in gross gaming revenues. Overall gaming revenue in Nevada dropped 10.4%, while poker revenue only decreased by 6.5%. The difference was even more pronounced in New Jersey, where the 5.2% decline in poker revenue was considerably smaller than the 12.4% drop in overall gaming revenue.

American Perceptions of Casino Entertainment
When survey participants are asked their personal views of casino gambling, 81 percent say it is acceptable for themselves or others. They also see the benefits casinos bring to communities, including job creation, tax contributions, increased tourism and economic development. When comparing an evening out at a casino to other entertainment options, nearly three-quarters (73 percent) consider it a good value for the money.

When asked their favorite casino game, well more than half (59 percent) of survey respondents say they prefer slot machines to any other game on the casino floor Nearly one-in-five (18%) say blackjack is their favorite game. Poker (7%), roulette (6%) and craps (5%) also are cited, though none garnered double digit support. (E-12.23.10)

© Copyright 2010 CasinoCompendium



>>> return to archives
>>> return to frontpage