People who visited U.S. casinos and card rooms in 2017 spent more than $89 billion, according to a new study commission by the American Gaming Association.
Total casino revenues represented spending by patrons on-site at casinos, excluding leased outlets, such as restaurants. As a share of total revenue, 62.3 percent was generated at commercial casinos, and 37.7 percent was generated at Native American casinos.
In terms of revenue by type: Gaming revenues comprised 82 percent ($73.0 billion) of total revenues; and non-gaming revenues comprised 18 percent ($16.5 billion) of total revenues. Non-gaming revenues include food and beverage, hotel rooms, and other revenue, such as entertainment (net of promotional allowances, such as complimentary or discounted hotel rooms, meals and entertainment tickets). The study was done by Oxford Economics.
The $89.5 billion in total revenue puts the casino industry ahead of many other sectors of the economy. Americans spend far more at casinos than they do on their pets, sports tickets, as well as on games and toys. Below is a look from Oxford Economics.
The gambling industry generated even more in terms of direct spending. In total, the gaming industry generated $109 billion of direct spending in 2017. This represents the total revenue of US casinos, the US portion of gaming manufacturer revenues, and ancillary spending by casino patrons in the US. This total direct spending represents the “direct output”, or sales, generated by the gaming industry. The analysis excludes capital spending on casino construction and renovations other than purchases from gaming manufacturers.
Taken further, the industry was found to make the U.S. economy hum to the tune of $261.4 billion, which includes indirect output of $67.1 billion, which represents additional supply-chain effects supported by the gaming industry, as well as induced output of $85.3 billion, which represents additional purchases supported by the earnings of directly and indirectly supported jobs.
The $261 billion is a 9.5 percent increase since 2014, the AGA said. The industry supports nearly 1.8 million jobs, up from 1.7 million jobs in 2014.
“Gaming companies across the country are enabling long-lasting careers for their employees and making a huge impact on their communities through innovative partnerships with local nonprofits, volunteerism and the generation of revenue that supports critical services. The industry’s tax revenue alone provides enough funding to hire 692,000 new teachers,” said Sara Slane, senior vice president of public affairs for the American Gaming Association. “Since our last study in 2014, casino gaming has expanded into new markets, offered innovative new entertainment options and enhanced its position as a key contributor to local, state and federal economies.”