Economic impact: Global gaming industry generates $47.5bn

Economic impact: Global gaming industry generates $47.5bn

Monday, May 15, 2017 Posted by James Walker

The global gaming supplier industry generates a total economic impact of $47.5 billion and supports more than 212,000 employees, according to a comprehensive report released last week by the Association of Gaming Equipment Manufacturers (AGEM).

Led by large slot companies, the report reveals that, in addition to the total impact of $47.5 billion, the gaming industry has a direct economic impact of $17.9 billion, paying a total of $14.2 billion in wages to 55,000 direct employees.

The report – titled Industry Impact Analysis: Global Gaming Supplier 2017 – was the result of an independent study commissioned by AGEM and conducted by Las Vegas-based research firm, Applied Analysis.

Pegged as the “most comprehensive review to date of the global gaming supplier industry”, it analyses the size and scope of this technology-driven sector, specifically identifying AGEM members’ global reach, spanning every regulated gaming market in the world.

Among the report’s findings, the average direct wage per employee in the industry reached approximately $89,400 in 2016, reflecting a significant premium to the current US average annual wage of $49,630, as listed by the Bureau of Labor Statistics.

The industry has an especially strong impact in Nevada, and overall employs a broad range of workers, including high-end technical professionals and engineers responsible for hundreds of millions of dollars in research and development expenditures annually.

“We were pleasantly surprised by the results of our independent impact analysis,” Marcus Prater, executive director of AGEM, told TotallyGaming.com.

“The size and reach of the gaming supplier industry is not only impressive on the whole, but our industry benefits from the ingenuity, creativity and technical abilities of our tens of thousands of employees.”

With 151 member companies based in 23 countries, AGEM is anchored by the world’s largest slot machine companies including Ainsworth Game Technology, Aristocrat Technologies, International Game Technology (IGT), Konami Gaming, Merkur Gaming, Novomatic Group and Scientific Games.

“A lot has changed in our sector during the past several years, but what hasn’t changed is the impressive output of the global gaming suppliers and technology providers,” Prater said.

Among AGEM voting member companies surveyed for the report, none of the respondents said they expect to decrease their staffing levels over the next 12 months, with 57% expecting to increase their employee numbers during this time.

More than two-thirds (68%) expect the economic conditions to improve during the next 12 months, AGEM stated.

Totally Gaming says: While consolidation continues to sweep through the top level of the global gaming industry, the rise of the next level of manufacturers – along with a general expansion of new products and technology created by supplier innovations – has resulted in impressive growth and a strong overall impact across the board.

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