Dear Editor,

Though the American Gaming Association does not take a position on gambling expansion, your readers should know that the argument in Nate Silver’s October Esquire article does not hold water.

Mr. Silver claims that casinos attract the sort of customers “who shouldn’t be spending their money on gambling.” However, according to a 2007 survey conducted by Harrah’s Entertainment, Inc./TNS, the average income of casino players is 16 percent higher than that of average Americans. And a 2007 study from the American Bankruptcy Institute found no link between casinos and increased bankruptcy rates.

Also, why does Mr. Silver single out the gaming industry? No industry is impervious to today’s prolonged and severe economic recession, and consumer-driven industries have been particularly hard hit. For example, according to the National Restaurant Association, the restaurant industry has been contracting since the third quarter of 2007. Similarly, airline revenues and hotel occupancy rates across the country continue to decline. Mr. Silver fails to mention that the gaming industry’s struggles are hardly unique.

I would like to offer a more accurate assessment of the gaming industry’s current and future prospects.

First, the industry is far from monolithic; though some gaming communities are struggling, others are faring well. More specifically, throughout 2009, casino revenues in Indiana, Pennsylvania and Missouri have significantly increased or held relatively steady despite the challenging economic environment.

Second, gaming remains a good economic bet. Though casino earnings may be depressed in some regions, the industry continues to be an important provider of jobs and tax revenue, which – without casinos – simply wouldn’t otherwise exist. Last year, casinos employed more than 357,000 people and returned $5.7 billion in direct gaming taxes to states and communities.

Finally, though times are tough, casinos continue to welcome millions of guests each week. The gaming industry has every reason to believe that, when the national economy recovers, it will rebound even stronger than before.

Sincerely,   
Frank J. Fahrenkopf, Jr.
President and CEO
American Gaming Association