An Oxford Economics study, commissioned by the American Gaming Association as part of a state-by-state survey of gambling’s economic impact, showed in 2013 Colorado’s 39 casinos had an impact of .5 billion, four Maryland casinos generated .4 billion, seven in Florida had an impact of .2 billion and Kansas’ three casinos generated 3,000 million.
The AGA study is included in its “Get to Know Gaming” campaign, designed to challenge stereotypes and promote the $240 billion gambling industry in 23 states that supports 1.7 million jobs and generates $38 billion a year in taxes.
Chris Moyer, AGA director of media relations, said, “We were surprised to see how large the industry is. An employee who works at the casino goes and spends at a local business. There is a multiplier effect and that business is able to hire more workers. It really has a ripple effect on the economy and the supply chain.”
Colorado’s casinos, located in Black Hawk, Cripple Creek and Central City, paid a total of $342 million in taxes in 2013, including $104 million gaming tax revenues, $109 million in state and local taxes (including $41 million in sales taxes, $9 million in personal income taxes and $40 million in property taxes). In addition, they paid $130 million in federal income, corporate and Social Security taxes. Without these revenues, Colorado households would have paid an additional $173 in taxes every year, the report said.
Colorado’s non-tribal casinos employed 5,600 workers in 2013 and ancillary spending supported another 600 jobs, amounting to $294 million in wages paid by casinos and players. The money those employees spend supported another 10,000 jobs. Without Colorado’s commercial casinos, the state’s unemployment rate would increase from 4.7 percent to 5.4 percent.
The study further showed gamblers lost $749 million last year and the casinos made an additional $52.4 million in revenue beyond slots and cards. It indicated gambling tourists spent an additional $51.5 million in the three gaming towns, resulting in $852.6 million in total direct spending in casinos and gambling towns in 2013.
Four Maryland casinos that opened fiscal 2013–Hollywood Casino Perryville, Casino at Ocean Downs, Rocky Gap Casino Resort and Maryland Live–added $1.4 billion to the state’s economy. Their 9,000 slot machines and 350-plus table games generated $608 million in revenue and contributed $543 million in taxes. The report stated without the commercial casino industry, the average Maryland household would pay an additional $252 in taxes each year and the state unemployment rate would increase from 6.3 percent to 7 percent.
Nearly half of slot machine revenue goes to the state education trust fund, and about $1.5 million pays for problem-gambling programs.
The AGA study did not include the $442 million Horseshoe Casino Baltimore, which opened in August 2014 and employs 3,000 people. A sixth casino, the $925 million MGM National Harbor, will open just outside Washington in 2016.
AGA President and Chief Executive Officer Geoff Freeman said, “This study shows that gaming is driving big results in Maryland. However, given increased competition and changing consumer demands, our future success depends on strong partnerships with policymakers that allow us to innovate, reinvest and create more jobs.”
In South Florida, seven commercial casinos had an economic impact of $1.2 billion for 2013, generating $358 million for the state last year, including $163.7 million in gaming taxes for education and other essential state services. Gambling revenues totaled $467.6 million.
Casinos at South Florida’s dog and horse racetracks and jai-alai frontons created 7,474 direct and indirect jobs paying more than $325.5 million in wages.
The study did not include revenues from the Seminole Tribe of Florida, which earned $2.1 billion from gambling in the fiscal year ending June 30, 2014. It paid $230 million to the state, and employs more than 10,000 workers.
“This study shows that gaming is driving big results in Florida. However, our future success depends on strong partnerships with policymakers that allow us to innovate, reinvest and create more jobs,” Freeman said.
The report indicated in Kansas in 2013, the three state-owned casinos contributed $673 million to the state’s economy. Total revenues were $391 million, including $365 million in gaming revenue and about $26 million in non-gaming revenue. The casinos paid $43 million state and local taxes, $50 million in federal taxes and $99 million in gaming taxes. The AGA’s Moyer said, “It was a big number, even given the relative infancy of the industry in Kansas.”
The casinos in the study were Boot Hill Casino in Dodge City, which opened in 2009; Kansas Star Casino in Mulvane, which opened in December 2011; and Hollywood Casino in Kansas City, which opened in February 2012. The Kansas Lottery is accepting applications until December 19 for a fourth casino to be built in the southeast zone.
The study found that the three Kansas casinos supported 4,000 jobs in 2013, including 2,200 direct jobs, 800 indirect jobs and 1,000 induced jobs. Total direct labor income was about $92 million, income from indirect labor was $27 million and income from induced labor was $29 million, the report said.
Without the direct jobs, households in Kansas would pay an average of $173 more in taxes each year and the state unemployment rate would increase from 4.8 percent to 5.3 percent.
The study showed that gaming contributes more than $53 billion to Nevada’s economy; supports approximately 425,000 Nevada jobs and more than $18.8 billion in income; and generates $7.9 billion in tax revenues to local, state and federal governments.
“This study shows that gaming is driving big results in Nevada,” said Geoff Freeman, president and CEO of the AGA. “However, given increased competition and changing consumer demands, our future success depends on strong partnerships with policymakers that allow us to innovate, reinvest and create more jobs.”
“The research reveals a vast industry that boosts local communities across Nevada by supporting jobs and generating customers for businesses,” says Adam Sacks, director of Oxford Economics, the research arm of Oxford University. “The industry also supports a wide range of government services in the state.”
Nationwide, casino gaming in the United States is a $240 billion industry supporting 1.7 million jobs and generating $38 billion in federal, state and local taxes, according to the Oxford study, reported the Las Vegas Review-Journal.
