Casinos are big business , generating more than $100 billion USD in revenue every year. In Las Vegas alone, the casino industry generates more than $10 billion USD in tax revenue annually .
Although casinos were previously banned in the US, gambling still thrives. There are more than 8 ,000 casinos operating in the US today (with another 1,500 on the drawing board). This equates to over 400 casinos per state .
The revenue generated by the casino industry is immense, accounting for more than $50 billion USD in profits each year , according to the American Gaming Association (AGA). However, the AGA also reports that the gaming industry accounts for less than one percent of US GDP; its contributions are nowhere near as significant as some other industries .
Despite its relatively small contribution to the US economy, the casino industry still helps to add a significant amount of jobs to the economy. According to the US Bureau of Labor Statistics (BLS), there are more than 700 ,000 people employed in the industry, with about 250,000 of them working in casinos .
The industry creates an estimated 90,000 jobs in construction and manufacturing as well. In Nevada alone , the casino industry employs over 125,000 workers and provides $20 billion in revenue to the state’s coffers .
It’s not just casino employees that contribute to the industry’s contribution to the economy, however. Customers and tourists spending money at casinos help to support the industry as well. According to some estimates, the average budget of a casino customer is $100 per person per day . For a typical casino , the casino industry creates $6 billion in revenue for Las Vegas alone.
That’s a lot of money being spent by a relatively small number of people .
What Is the Casino Industry ?
The casino bk8 industry consists of establishments where gambling is legal. These establishments include casinos, racetracks, card rooms, bingo halls, and slot machines in bars and other venues. It’s estimated that around 30% of adults in the US gamble at least once a year , spending an average of $300 per person per year on gambling expenses .
The industry is also growing rapidly. According to the American Gaming Association, the number of slot-machines in the US has doubled in the past 10 years. With around 130 million slots in use across the country , that’s a lot of slots .
Aside from the slot machines themselves , the casinos themselves are also playing a huge part in the rise of the casino industry . Since 2004, the number of casinos in the US has risen by 86%.
“The casino industry supports tens of thousands of jobs and injects billions of dollars into the economies of communities across the US,” said Geoff Freeman , president of the American Gaming Association .
What Does the Casino Industry Do ?
The casino industry as a whole employs more people than any other single industry in the US. In fact , it employs more people than mining, fishing, and forestry combined. The casino industry contributes $20 billion USD to the national economy every year and indirectly employs more than 230,000 people .
This level of economic contribution is rarely found in other industries .
But it’s not just the casinos themselves that are contributing to the economy. The gamblers who visit them are also spending their hard-earned money in these establishments—and often spending a lot more than they expected. According to the National Gambling Impact Study Commission (NGISC) , an average gambler spends around $1,200 per year at casinos .
That’s a lot of money for the average gambler !
How Does the Casino Industry Affect the Economy ?
Although the casino industry isn’t contributing anywhere near as much as some other industries to the US economy , it still provides a great deal of economic stimulus. According to some estimates, the industry directly supports more than half a million jobs in the US—and at least as many indirect jobs .
And it’s not just jobs. The casino industry also provides considerable economic stimulus for the economy as a whole. According to the NGISC , the industry accounts for between $7 billion and $14 billion a year in economic activity and $11 billion in tax revenue for states and local governments .
This level of economic contribution is rarely found in other industries .
“The casino industry supports tens of thousands of jobs and injects billions of dollars into the economies of communities across the US” says Geoff Freeman of the AGA. “Adding another 1 ,500 new facilities will generate even more jobs and economic output across the country .”
As you can see , the casino industry is very integrated with the wider economy—and has a real impact on it .
The Casino Industry and Its Impact on the Economy
If you’re wondering what the casino industry does and how it affects the economy , hopefully this article has given you a better idea of just how integral the casino industry is to the wider economy .
Of course, these estimates only include direct employment figures—and they don’t take into account indirect job creation . For example , businesses that supply the casino industry with goods and services also create jobs and contribute to the economic growth of their local area.
According to the NGISC , the casino industry directly accounts for around $6 billion in economic activity and $11 billion in tax revenue for state and local governments . This is in addition to indirect economic activity and tax revenue that is generated by other local businesses.
So not only are casinos directly responsible for employing tens of thousands of people—they are also creating indirect jobs and supporting the local economy as a whole .
1 . The Casino Industry Grows
As you can see , the casino industry is big business in the US—and it’s growing rapidly too . According to the American Gaming Association, there are currently more than 8,000 casinos operating across the United States—with another 1,500 in the works.
Despite its considerable economic impact on the US—and the fact that casinos were previously banned until the 1960s—the casino industry has continued to grow in recent years .
In recent years , many states have seen a rise in the number of casinos being approved and built in their state . The states of Florida, Nevada, and New Jersey have all approved several new casinos in recent years; and casinos have sprung up in many other states as well.
This growth isn’t only occurring in the brick-and-mortar casino industry either; online gambling is now becoming a big player in the casino industry too. There are now thousands of online casinos operating in the country—and the industry remains unregulated by the US government .
If you want to know more about how online casinos work and the regulations governing them in the US , take a look at our guide to online gambling laws and regulation in the US .
2 . The Casino Industry Supports Other Industries
The casino industry doesn’t just provide stimulus for the economy; it also provides support to many other industries as well . The NGISC estimates that the industry directly supports more than half a million jobs in the US—and that this number grows to around one million jobs when you include indirect employment figures.
Beyond this direct impact , the casino industry also helps to generate substantial economic activity and tax revenue for other industries too. According to the NGISC’s report, the casino industry generates around $11 billion in additional economic activity and $7 billion in additional tax revenue for state governments and local governments every year .
These figures are similar for the manufacturing sector too. According to the BLS , the casino industry provides around $1 billion USD in manufacturing jobs in the US each year—and this rises to more than $1 .5 billion when you include indirect jobs created by other local businesses.
So not only are casinos directly responsible for employing tens of thousands of people—they are also creating indirect jobs and supporting the local economy as a whole .
3 . The Casino Industry Helps to Complement the Economy
The casino industry adds a significant amount of money to the economy—but it doesn’t just provide its own stimulus. By attracting customers from other industries such as tourism , the casino industry is also helping to support other industries as well .
Many gamblers try their luck at online casinos when they’re not playing in a brick-and-mortar casino; and online casinos are attracting customers from many more industries than just gambling enthusiasts too . For example , online casinos are frequented by people looking to stay out of the cold—and to meet new people.
And although online casinos can’t offer the social interactions of a real-world casino experience, they can still offer something we’re drawn to: risk and reward. Just like in the brick-and-mortar casino environment , online gambling offers the possibility of big wins—and big losses .
