May 2002

How did the industry fare last year amidst an economic downturn and unprecedented challenges to our country? What states showed the highest growth? How much did the industry pay in taxes to state and local governments? How many casinos are there in the United States, and where are they located? How do young and old Americans, rich and poor Americans, and American men and women compare in their acceptability of casino entertainment?
 
Answers to these questions and more can be found in the fourth annual casino industry survey produced by American Gaming Association (AGA). The survey, which in previous years has been distributed in the fall, has been moved to a regular spring release to provide members, media and policy-makers access to more timely data throughout the year.

The 2002 State of the States: The AGA Survey of Casino Entertainment showed that the commercial casino industry continued to make significant contributions to the U.S. economy in 2001. According to the survey, the commercial casino industry grew by nearly 5 percent last year, earning gross revenues of $25.7 billion and providing approximately 365,000 jobs with wages totaling $11.5 billion. In addition, the industry paid $3.6 billion in tax revenues to state and local governments across the country, a 4.2 percent increase over 2000 figures.

"This data shows that our industry was again a driving force in the economy, despite unprecedented challenges in 2001," said AGA President and CEO Frank J. Fahrenkopf, Jr. "The expansion of our business beyond Las Vegas and its evolution into a truly national pastime enabled our industry to continue to grow, even in difficult times."
 
For the first time, the survey provides a glimpse at a relatively new and growing segment of the gaming industry: racetrack casinos. According to the data, racetrack casinos (pari-mutuel facilities, which include horse tracks, dog tracks or jai alai, with slot machines on-site) had revenues in 2001 totaling $2.1 billion, generating $578 million for state and local governments and employing approximately 8,000 people.

In addition to hard economic data on commercial casinos by state, the 2002 State of the States survey revealed important information about Americans' perceptions of the industry. Public opinion research conducted by Peter D. Hart Research Associates, Inc., and The Luntz Research Companies showed that Americans' views of the casino industry have remained remarkably consistent over the past several years.

The polling data are organized into four distinct areas: 1) casino acceptability; 2) casino benefits; 3) regulation and taxation; and 4) responsible gaming.
 
According to the survey, 79 percent of Americans believe that casino entertainment is an acceptable form of recreation for themselves or others. A breakdown of that data by age, gender, income and region reveals interesting trends: Young people are far more likely to view casino gambling as an acceptable activity than older Americans. Men are more likely than women to view gambling as a personally acceptable activity, while women are more likely to see it as an activity that is acceptable for others. Westerners have the highest acceptability of casino gambling, while those in the South have the lowest. And individuals with higher incomes are more likely to view casino gambling as acceptable, while those with lower incomes are more likely to see it as an activity unacceptable for anyone.
 
In terms of benefits, a majority of Americans indicated that they recognize the economic and entertainment value of casinos as well as the value of the taxes paid by the industry to state and local governments.
 
Questions regarding responsible gaming painted a picture of an industry that, in the public's eyes, has done a relatively good job preventing illegal use of their product. While Americans see underage gambling prevention as an important industry responsibility, they are more likely to demand personal accountability from adults in addressing compulsive gambling. The data also found that most individuals who choose to gamble are responsible players, setting budgets and viewing it as a social, not a solitary, activity.
 
An oversample of individuals who have gambled at a casino at least once in the past year revealed that casino patrons are a reflection of America. In some cases, the poll found that casino customers are even more likely than the average American to be involved in civic or patriotic activities. A separate national survey by Harrah's Entertainment Inc./NFO WorldGroup found that casino patrons tend to be better educated and have higher annual salaries than the average American.
 
To obtain a copy of the survey, call the AGA at 202-637-6500. The survey also can be viewed at or downloaded from the AGA Web site.