The Report on the American Gambling Industry Was Released at the Global Gaming Expo 2014
According to a report from Oxford Economics, the U.S. gambling industry paid $38 billion in federal, state, and local taxes in 2013. The study was part of a “Get to Know Gaming” campaign by the American Gaming Association.
The AGA-backed study gauged the impact of America’s gaming industry on the overall American economy. It studied private-owned casinos like those found on the Las Vegas Strip, land-based tribal casinos, racetrack betting, lottery gaming, and legalized online gambling. For instance, the tax revenues from the various lotteries for the purpose of state education funds were measured.
1,700,000 Jobs Created
Taxes are only a part of that picture, though. The gaming industry creates jobs for Americans in such large numbers that the economic impact is hard to quantify. Oxford Economics found that 1.7 million Americans work in the gambling industry, which is more people than work for the central government in Washington D.C.
The gaming industry workers collect $240 billion in wages, salary, and tips each year. That number exceeds the combined economies for the states of Texas and New York, which have the 2nd and 3rd largest economies among the United States.
Oxford Economics Comments
Adam Sacks, the Director of Oxford Economics, said the economic impact is larger than they expected when the study began. Sacks told Tax-News, “The research reveals a vast industry that supports local communities across the country through business linkages and employment generation. Given the relatively high levels of taxes on the casino industry, it supports a wide range of government services as well.”
AGA President’s Statement
Geoff Freeman, the President and CEO of the American Gaming Association, said that the Oxford Economics study should open eyes of legislators, public policy groups, and average citizens to the contribution made by the gambling industry. Freeman said, “We’ve known for a long time that our industry’s contributions have gone underestimated, but these numbers are bigger than even we anticipated. This further underscores the importance of our message to policymakers: work with us as partners so that gaming can innovate, reinvest and create even more jobs.”
While funding a study to research the positive economic impact of gambling on the United States might be seen as self-serving, the statistics cannot be denied. Gambling is a large part of the American comedy. Furthermore, most Americans think that’s a good thing. When you consider that gambling employs more Americans than the federal government, you begin to understand the huge economic impact the industry has. That industry was on display from September 28 to October 2 in Las Vegas this year, which is where the report from Oxford Economics.
Global Gaming Expo 2014
The Oxford Economics study was released at the 2014 Global Gaming Expo, which took place from September 29 to October 2 in Las Vegas. The annual event works as a showcase for the latest technologies and game releases for the international gaming industry. Each year, a handful of the leading executives give speeches to address industry concerns and present their vision for the future.
This year, the keynote speaker was Sheldon Adelson, the president of the Las Vegas Sands Corp. Other speakers include Steve Wynn, who recently won the Boston-area license after a grueling 3-year contest with rivals like Caesars Entertainment and Mohegan Sun.
Gaming Taxes in Perspective
If a person wants a perspective on the amount of money the American gambling industry contributes to American society and the U.S. government, then the $38 billion is roughly equivalent to the nominal gross domestic product for countries like Ghana ($40b), Serbia ($38b), or Panama ($36b). The money is less than the GDP for the city of Macau ($45b), though this takes into account the GDP from all facets of Macau’s economy–not just its gaming industry.
The $38 billion paid in taxes in 2013 is also roughly equivalent to the wealth of Sheldon Adelson, the 8th-richest man in the world, the president of the Las Vegas Sands Corporation, and the wealthiest of all gaming executives.
