Las Vegas, NV– For the first time ever, a new study conducted by Oxford Economics examines the broad economic impact the gaming industry as a whole has on the U.S. economy. The American Gaming Association released the first-of-its-kind study, which measures the economic impact of every facet of the casino gaming industry–commercial casinos and manufacturers and Native American casinos–as well as the industry’s significant ripple effect on the supply chain, including local businesses.
Oxford’s study found that the U.S. gaming industry:
- Contributes $240 billion – nearly a quarter-trillion– to the U.S. economy, which is equivalent to the total state budgets of New York and Texas combined;
- Supports more than 1.7 million jobs–more than double Washington, D.C.’s total employment–and nearly $74 billion in income;
- Generates $38 billion in tax revenues to local, state and federal governments – enough to pay more than half-a-million teachers’ salaries.
“We’ve known for a long time that our industry’s contributions have gone underestimated, but these numbers are bigger than even we anticipated,” said Geoff Freeman, president and CEO of the American Gaming Association. “Gaming is driving big results in hundreds of American communities. Our future success depends on strong partnerships with policymakers that allow us to innovate, reinvent, and create more jobs.”
“The research reveals a vast industry that supports local communities across the country through business linkages and employment generation,” says Adam Sacks, director, Oxford Economics. “Given the relatively high levels of taxes on the casino industry, it supports a wide range of government services as well.”
According to a recent poll conducted by respected pollsters Mark Mellman and Glen Bolger, voters across the political spectrum view casino gaming more favorably than ever before. Further, the vast majority recognizes that casino gaming creates jobs, strengthens local businesses and benefits communities. In order for the gaming industry to continue serving as an economic engine, policymakers must work with industry leaders to craft policies that help maximize gaming’s ability to innovate, reinvest and contribute to local communities.
Contributes $240 Billion the U.S. Economy
U.S. casinos, including those owned by Native American tribes, generate total revenues of more than $81 billion. Casino gaming revenues – $67 billion – are now at an historic peak. American gaming equipment manufacturers, who build the table games, slot machines and other products found on the casino floor, produce nearly $6 billion in total revenues. The gaming industry generates more than $14 billion in consumer spending at restaurants, retail stores, hotels and other businesses. The industry also generates approximately $60 billion in payments to suppliers, including many local, and injects $78 billion through gaming employees’ spending.
Supports More Than 1.7 Million Jobs and Nearly $74 Billion in Income
Casinos are one of the largest recreational employers in America. Gaming directly employs approximately 734,000 American workers, generating nearly $33 billion in wages, benefits and tips. Casino purchases from suppliers support another approximately 383,000 jobs, and gaming employees’ spending sustains nearly 595,000 jobs. Overall, the industry supports a total of more than 1.7 million jobs–greater than the entire airline industry–and nearly $74 billion income.
Generates $38 Billion in Tax Revenues
Oxford Economics found that the gaming industry generates nearly $17.3 billion in federal taxes, approximately $11 billion in state and local taxes and almost $10 billion in state and local gaming taxes. The $38 billion-plus injection into public budgets pays for a range of services including public safety, hospitals and schools, among others.
For more information about the Oxford Economics study, view the fact sheet, report and the report methodology. The release of the Oxford Economics study is a key component of the AGA’s “Get to Know Gaming” campaign – an aggressive effort to promote the value of the gaming industry, combat outdated stereotypes and pave the way for gaming’s next generation.