CASINO

AGA says casino industry is one percent of US GDP

TAGs: AGA, American Gaming Association, Beyond the Casino Floor: Economic Impacts of the Commercial Casino Industry, Casino News

AGAThe American Gaming Association (AGA) released its comprehensive report today, demonstrating the economic activity supported by the commercial casino industry in the United States, and how it was equal to 1% of the country’s $14.5 trillion gross domestic product in 2010.

The report, named Beyond the Casino Floor: Economic Impacts of the Commercial Casino Industry, takes into account economic impacts of the commercial casino industry throughout the U.S. in 2010, such as tax revenues and consumer spending.

President and CEO of the AGA, Fahrenkopf, said in a press statement: “There is no doubt the commercial casino industry is a significant and vital part of our nation’s economy. The industry generates and supports economic activity that stretches far beyond the communities that host casinos and into the greater American economy.”

Here’s a rundown of the key points made in the AGA report of the year 2010:

  • 566 casinos in 22 states supported approx. $125 billion in spending and nearly 820,000 U.S. jobs.
  • Taking all lines of spending into account, commercial casinos directly generated $49.7 billion in consumer spending and about 350,000 jobs, with salaries and benefits totalling nearly $15 billion.
  • When indirect and induced impacts are taken into account, the industry supports an additional $76 billion in spending with suppliers and other businesses, and more than 470,000 additional jobs.
  • Around two-thirds of the $125 billion in spending was generated in the host and surrounding counties and about one-third was generated in other counties across the U.S.
  • One-third – or $15.2 billion – of the commercial casino industry’s revenue came from non-gaming sources, including food and beverage sales, hotel operations, retail, entertainment, and meetings and conventions.
  • The gaming industry directly paid nearly $16 billion in taxes, with its effective tax rate totalling 32%, which is significantly higher than the economy-wide total tax burden of 27%.

Principal at The Brattle Group, Dr. Coleman Bazelon, added: “The data in this report shows the significant scope of impact of this industry. This report shows the economic activity spurred and supported by the commercial casino industry has a ripple effect throughout the nation’s greater economy.”

The report was based on economic modelling and analysis, supported by data from AGA member companies.

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