LAS VEGAS, Nev. - Casino companies and the industries that support them paid $21 billion in wages to more than 700,000 men and women during 1995 and employ more people than the soft drink, cellular phone, video and cable TV industries, according to an Arthur Anderson study released today.

According to the study, the average casino wage was $26,000 last year compared to: $20,000 in other amusement and recreation industry sectors; $16,000 in the hotel/motel industry and $22,000 in the motion picture industry. In all, $10 billion in direct wages were paid by casino gaming and another $11 billion were paid as a result of indirect jobs created by the industry.

The study also attributed the phenominal growth of the casino gaming industry over the past decade to “meeting a consumer demand” for recreational and entertainment alternatives.

The study offers a concrete repudiation of the so-called “substitution effect” when applied to the gaming industry. Pointing to an overall increase in recreation spending of $54.2 billion between 1990 and 1993, the Andersen study says, the $3.2 billion of new spending attributed to casino gaming during that same period “is not merely replacing other industries since other recreation industries besides gaming are clearly growing as well …[and] …Meeting consumer demand is a key to economic growth.”

The study, funded by the American Gaming Association (AGA), was released during a speech by AGA President and CEO Frank J. Fahrenkopf, Jr. during the American Gaming Summit where he also announced the launching of a new campaign called “Putting a Face On the Industry” to raise public awareness about the numbers and types of jobs the casino gaming industry provides.

“This study shows once and for all that the gaming industry provides hundreds of thousands of good paying jobs,” said Fahrenkopf. “The economic impact of the industry reaches far beyond the 26 states where casinos are legal. The study shows we account for jobs in all 50 states from the leather worker in Montana, to the textile worker in Alabama, to the brewery supervisor in Wisconsin, to the flight attendant in Hawaii.”

The study found that the casino industry (excluding Native-American casinos) alone directly employed 284,100 workers and created an additional 425,000 indirect jobs in 1995. When Native American casinos, lotteries, cruise ship and para-mutual gaming are included, the number of jobs across the country created by the gaming industry exceeds one million.

The study also found that the casino industry not only pays well but generates more new jobs per $1 million in revenue than other industries who provide discretionary services and products. For every $1 million in revenues generated by the industry, 13 jobs were created compared with seven jobs in the video industry; five jobs in the cellular phone and cable TV industries; and three jobs for the soft drink industry.

Other findings include:

• Casino gaming revenues have doubled since 1990
• In 1995, casino gaming industry (excluding Native American casinos, cruise ship casinos and certain non-casino slot machines) reported $25 billion in total revenues
• Casino gaming revenues in 1995 resulted in $12.8 billion in federal, state and local taxes
• The casino industry spent $12.8 billion on capital investments from 1993 through 1995 and the 30 largest casino companies invested more than three times their combined net incomes in 1995
• Unlike many other major industries that rely on foreign labor, the casino gaming industry creates jobs in the United States
• The casino industry brings in $1 billion a year from foreign gamers and guests
• The gaming industry creates jobs in other sectors (e.g. casino construction and capital expenditures contributed to 125,000 construction-level jobs)
• For every $1 million invested, 10 to 15 jobs are created

“This study provides important numbers and statistics but what it really does is give us a springboard to launch our campaign,” added Fahrenkopf. “We are committed to putting a face on the industry. Every number and statistic represents real people and their families.”

The American Gaming Association’s mission is to represent the gaming-entertainment industry by addressing regulatory, legislative and educational issues. To fulfill that mission, the AGA serves as a clearinghouse for information; develops aggressive educational and advocacy programs; and provides leadership in addressing industry issues that are of public concern.