Healthy State of the States as gaming revenues hit €40 billion

Healthy State of the States as gaming revenues hit €40 billion

Thursday, August 23, 2018 Posted by Luke Massey
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The nation’s 460 casinos contributed $9.23 billion from taxes alone

The American Gaming Association (AGA) has released the 2018 edition of its flagship publication, State of the States: The AGA Survey of the Commercial Casino Industry. The annual report provides a comprehensive overview of the commercial casino industry and the significant economic impact it has in the 24 US states with commercial gaming operations.

Key among the findings from the report was that the commercial gaming industry brought in  $40.28bn in gaming revenue in 2017, a 3.4 per cent increase over 2016. It is the first time that gaming revenue has gone beyond the $40bn mark. Gaming was also a significant revenue generator for states - with the nation’s 460 casino locations contributing $9.23bn in revenue from commercial gaming taxes alone.

Additionally, said the report, 20 commercial casino states experienced revenue increases in 2017, reflecting strong macroeconomic trends and sustained job growth in most parts of the country.

AGA’s annual State of the States report includes state-by-state analyses of revenue, tax data and wage and employment information from the previous year. For the first time, the 2018 edition combines two of AGA’s signature publications: States of the States and US Gaming Industry Review – into one comprehensive overview of the 24 US states with commercial casino gaming.

Stacy Papadopoulos, interim CEO of the American Gaming Association, heralded the publication of the document, saying: “Each year, AGA’s State of the States report provides the most detailed snapshot available of our complex industry, and the many benefits AGA members provide for their employees, partners and communities.”

She added: “This year’s report demonstrates the commercial gaming industry’s role as a job creator and revenue generator in states across the country, and we’re proud of the industry’s steady growth over the past few years.”

While commercial gaming is the primary focus of the AGA’s annual report, it also covers the fortunes of the Tribal gaming segment which has also performed exceptionally well during 2017: It revealed: “In addition to commercial casino gaming in 24 states, tribal casinos with either Class II and/or Class III gaming were fully operational across 28 states - a number that’s expected to increase. According to the National Indian Gaming Commission, tribal gaming revenues hit a record $32.4bn in 2017, up 3.9 per cent from the previous year. Tribal gaming was driven by the same underlying consumer trends that benefited commercial gaming.”

The document also revealed the top 20 pecking order of commercial casino markets. It said: “In 2017, the Las Vegas Strip held on to its status as America’s largest commercial casino market. Meanwhile, the Baltimore/Washington DC market grew to become the fourth-largest commercial casino market following the approval of expanded gaming in Maryland in 2008 and the late-2016 opening of a major new resort casino just outside of the nation’s capital. Baltimore/Washington DC leapfrogged the New York City market, which still grew year-over-year following the opening of a new gaming location on Long Island.”

Totally Gaming says: The AGA’s findings in its latest state-by-state report paint a positive picture of the US commercial casino sector. Only four of the 24 states operating commercial gaming locations were unable to show year-on-year growth. But with more casinos being planned across the country there is likely to be a hike in competition for gambling spend. And that’s not taking into account legalised sports betting.

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