Casinos are powerful drivers in US economic activity netting over $300 billion a year

By Shadrack Kairu

According to a new study by the American Gaming Authority (AGA), the casino gambling industry in the United States now drives nearly $329 billion in total economic activity annually, cementing its status as a pivotal economic anchor across dozens of states nationwide.

The extensive report underscores the gaming industry’s monumental growth, with recent metrics indicating the sector’s aggregate impact has swelled over 26% since 2017. That translates into 1.8 million American jobs underpinned by the industry today, alongside $104 billion in associated wages and benefits. Additionally, $52.7 billion flows into public coffers via taxes applied on elements like casino earnings, supplier sales, and employee incomes.

Breaking down the economic impact of the casino industry in the US

A closer analysis of the sector’s full footprint shows a multiplier effect that goes far beyond proceeds directly won by commercial, tribal, and online casinos. In fact, direct gaming revenues accounted for only 22.5% of the industry’s total $329 billion US economic impact calculated for 2022.

The research also reflects substantial gains registered across critical metrics since the last AGA analysis published in 2018 using 2017 metrics. Over those five years, aggregate economic activity has expanded by 26% fueled especially by swelling employment, capital investments, and tax payments tied to the national gambling ecosystem.

While casino properties themselves remain top contributors, the loosening of gaming laws has paved the way for the emergence of a sprawling industry web including construction companies, tourism bureaus, entertainment firms, restaurants, tech vendors, payment processors and countless other beneficiaries.

For example, when you zoom in on core operations, America’s commercial and tribal casino sectors directly supported around 1.8 million jobs last year. This includes about 700,000 positions within casinos or affiliated hospitality businesses.

Employee wages have notably risen above 2017 levels, totaling $24 billion nationwide during 2022. This showcases how casinos increasingly provide middle-class incomes, especially in smaller cities or rural areas often eager to attract gaming development.

Given ongoing state-led pushes to legalize both retail and online gambling coupled with further post-pandemic recovery anticipated, projections point to America’s gaming sector enlarging its world-leading status over the decade to come.

The industry contributed $52 billion in taxes to the government in 2022

In terms of tax contributions, AGA’s analysis calculates that federal, state and local taxes collected from the gambling industry exceeded $52 billion for 2022. This drastic 29% increase over 2017 levels highlights gambling’s integral fiscal role in bankrolling critical public services countrywide.

As AGA CEO Bill Miller observed regarding the tax windfall, “Think back to where we were a few years ago with nearly 1,000 casinos, almost all of them closed. Today, we’re seeing record revenue in the industry.”

Underscoring this viewpoint, multiple authorities described the sheer magnitude of casino tax infusions and associated job creation as fundamental for myriad municipalities.

“Despite some economic headwinds, casinos remain powerful drivers of economic activity,” explained gambling historian David Schwartz of the University of Nevada, Las Vegas. He added that climbing annual revenues signal gaming’s enduring popularity amongst Americans from coast to coast.

Likewise, Stockton University Professor Jane Bokunewicz noted that besides tax proceeds, many casinos constitute the largest overall employers within surrounding populations. Through hiring local workers and utilizing regional vendors, such enterprises confer an instrumental economic role where established.

“Casinos are often the largest employers in a region, with major commitments in terms of wages and benefits. People employed by casinos use those wages and benefits to purchase additional goods and services, generating secondary economic impact.”

Stated Bokunewicz

By investing substantially in amenities and area infrastructure whilst providing careers that foster wider spending, casinos frequently catalyze prosperity indirectly. This manifests via revitalized local establishments as employed residents afford more recreation and shops flourish when visitor numbers swell.

As millions countrywide already rely on casino-derived incomes, upgrading regulations to attract further development could thus be prudent for state and city leaders pursuing economic growth.

The casino industry continues to grow exponentially in the US

Historically, the concept of legalized gambling originally took root back in 1931 when Nevada permitted gaming locally before later welcoming the famous casino hub Las Vegas. Over subsequent decades, many other states followed across America.

For example in 1976, New Jersey became the second state to allow commercial betting, including within the now-iconic casino destination Atlantic City. 11 more states gradually followed from 1989 to 2011, authorizing slot machines or full-scale casino gambling venues.

Today, the industry continues to see unprecedented levels of growth as more states acknowledge the potential this industry holds in terms of spurring their local economy. At the same time, more policies are still being introduced to tame issues arising with this growth.

The rise of online casinos

A big part of the growth of the gambling industry today can be attributed to the increasing capabilities of internet-connected mobile devices. As smartphones and tablets enable convenient real-time access to games, once-obscure niches like online bingo and digital lottery services have gone mainstream.

For example, there has been a sharp rise in the number of online sweeps casinos and other forms of social casinos. These platforms enable players to play using virtual coins – usually named Gold Coins and Sweepstakes Coins. The former holds no monetary value and is meant purely for entertainment purposes, while the latter can sometimes be redeemed for prizes like gift cards or vacations. While not tied to real money, these new platforms allow participants to experience the excitement and engagement of various casino-style games from slots and poker to bingo and keno.

Of course, there has been a lot of debate around whether such platforms should be considered a form of gambling or not from a legal standpoint. Proponents argue that since users don’t wager or win real money, no actual gambling occurs. However, others counter that the games too closely emulate US real money online casinos, potentially serving as a gateway, especially for minors. Lawmakers continue to grapple with appropriately regulating such new internet entertainment spaces. Ultimately though, their rising popularity speaks to humanity’s timeless attraction and embrace of gambling for entertainment.

What does the future hold?

With even more states vying to welcome casino gaming as awareness builds around associated fiscal advantages, projections suggest industry growth reaching a compound annual growth rate of 12% annually moving forward nationwide. Supported by ballooning iGaming as online platforms get regulated progressively, financial experts foresee casinos becoming nearly a $150 billion market by 2030.

The recognition of gaming’s economic potential combined with the increasing digitization that continues to expand access promises an incredibly vibrant future for US gambling interests. Couple this with the growing societal acceptance and you can easily tell that the coming decades point towards increasing integration of gambling into mainstream recreational ecosystems.

Now driving 1.8 million jobs and billions in incomes and taxes, the sector’s sheer scale debunks outdated notions of casinos as magnets for vice. Instead, the country now appears to fully embrace their role in uplifting local economies from coast to coast. As that understanding widens, so too will gaming’s already mammoth $329 billion footprint as casinos morph into mainstream entertainment and catalysts for shared growth.

Tough Love – Five US casinos decline paying out $77K won by underage gamblers

By Shadrack Kairu

Five US casinos and a race track are taking a hard line regarding underage gambling by forfeiting over $77,000 won by prohibited patrons considered underage.

New Jersey state regulators ordered Resorts Casino Hotel, Ocean Casino Resort, Bally’s, Golden Nugget, Harrah’s and Freehold Raceway to surrender the payouts after investigations found underage gamblers had accrued the winnings against the rules.

The casinos placed funds into escrow temporarily allowing gamblers to prove eligibility. But with no one validating the legal gambling age despite waiting periods, authorities designated the violators as banned “prohibited patrons”. Now forfeited monies totaling $77,600 will go towards assisting state programs that help vulnerable groups.

Resorts Casino Hotel in Atlantic City accounted for the highest forfeiture at over $51,000 accrued from cases that took place since 2020. Investigations revealed that banned underage gamblers or those unable to validate legal ages had accrued slot machine payouts playing games illegally.

Ocean Casino, on its part, relinquished $7,500 while Bally’s casino forfeited $5,600. Freehold Raceway harness racing track and sportsbook surrendered $4,400 and lastly, Golden Nugget and Harrah’s gave up $4,200 and $900 respectively and will now fund state programs instead.

Other US Cases Involved Gamblers On Self-Exclusion Lists

Separately, gamblers caught playing after voluntarily placing themselves onto New Jersey’s confidential “self-exclusion list” registry also faced winnings seizures recently.

This database run by gaming officials allows individuals admitting gambling problems to formally ban themselves statewide, requesting removal from mailing lists plus blocked access from online casinos and forfeiture of any prohibited payouts if caught violating terms.

Once listed, casino compliance staff are required to prevent gaming activities by these patrons. However if incidents occur violating agreements, winnings by self-excluded persons still get surrendered as regulations dictate. Exclusion terms at most US real money online casinos span one year, five years or permanent lifetime bans.

Ongoing enforcement by the casino industry

As the issue of underage gambling continues to pose challenges, the American Gaming Association (AGA) and its casino members have pledged to prioritize responsible gambling policies as an integral part of daily operations across the industry. This includes diligent efforts to prevent minors from accessing casinos and gambling opportunities.

The latest AGA code of conduct states that members must communicate legal gambling ages clearly in properties, online casinos, and promotions. Besides, all customer-facing staff must undergo training on procedures for addressing unattended children, underage gaming, and preventing minors from accessing alcohol and tobacco.

If an unattended child is identified in a casino, security personnel take reasonable steps to locate parents on-site or by phone contact. The code emphasizes: “If a child appears unsupervised or in violation of curfews, security or appropriate personnel must be contacted.”

According to Gary Schneider, a decades-long Gamblers Anonymous member, rising numbers of teens are seeking help for severe gambling problems in recent years:

“In the last year, we are seeing more and more 16-year-olds, 17-year-olds, 18, 19, 22, 24 that are coming in with severe gambling disorders,”

Gary Schneider observed.

Experts also warn online access has “exacerbated” gambling addiction risks by enabling instant betting from mobile devices. “It’s very easy to lose tens of thousands of dollars just by picking up your phone,” said Felicia Grondin of the Council on Compulsive Gambling of New Jersey.

To tighten the noose even further, some gambling companies including some sweeps casinos are now increasingly integrating machine learning and AI to restrict prohibited groups automatically. This is to ensure forged IDs become virtually useless as biometric facial recognition databases expand preventing underage patrons and banned persons from slipping through cracks.

How Parents Can Get Help Around Underage Gambling

One of the biggest modern challenges for parents has to be navigating new threats like underage gambling addiction. Luckily, there are now plenty of support options for concerned parents and guardians including the following:

National Council on Problem Gambling (NCPG)

As America’s oldest advocacy group solely countering gambling addiction founded in 1972, NCPG uniquely understands this affliction’s strains on families. So they offer parents multi-format help including a 24/7 confidential helpline, live chat services, webinars, video tutorials, extensive prevention literature and training sessions all focused particularly on youth gambling disorders.

Realizing one-size rarely fits all, offerings range from home-based monitoring controls plus bank activity oversight to frank conversations objectively explaining gambling’s balanced risks versus entertainment realities for teenagers today. Specific parental advice also covers appropriately utilizing activity blocking and detailed accounting software, teaching broader balanced financial and money management life skills as well as tips on selecting qualified counsellors or credentialed therapists during early troubling stages.

American Academy of Child & Adolescent Psychiatry (AACAP)

Complementing NCPG’s focus on the practical aspect of gambling, AACAP provides more clinical assistance through online education. This is aimed at unveiling warning signs of addiction like peer pressure, undiagnosed impulse control issues or unresolved emotional problems that disproportionately affect minors. Their searchable database connects affected families to local accredited specialists ranging from counsellors and therapists up to child psychologists and board-certified adolescent psychiatrists.

Some of the treatment avenues covered include both outpatient and intensive inpatient programs using evidence-based modalities like Cognitive Behavioral Therapies (CBT) tailored to counteract root causes behind harmful dependencies like gambling. For parents preferring faith-based approaches, AACAP resources also integrate suitable providers espousing applicable spiritual principles into individualized therapies that promote overall positivity.

Gamblers Anonymous (GA)

For over 65 years, the GA program has helped parents, teenagers and anyone else wanting to confidentially share gambling addiction struggles in order to move forward positively day by day.

Multiple free support meetings occur nationwide both virtually and locally in most regions to provide solidarity plus strength and practical lived experience – all necessary when stopping destructive habits like gambling. Attendees find non-judgement talking through challenges among peers who understand the exact difficulties faced. GA also partners frequently with addiction therapists for supplemental care avenues aiding families as part of customized game plans addressing individual needs.

Children and Screens

The non-profit Children and Screens group offers parents assistance through their “Betting on Our Future” program explicitly focused on emerging Generation Z threats from mushrooming gambling outlets and persuasive marketing messages.

Their interdisciplinary experts including child psychologists continually generate adolescent gambling risk studies quantifying impacts. They also provide parental monitoring controls, balanced youth gambling usage advice in an entertainment context, short educational videos and broader advocacy against unrestrained gambling growth’s behavioural effects on highly impressionable kids.

Therapy Insider

Finally, for parents understandably feeling overwhelmed tackling a newly diagnosed gambling disorder affecting their teenager, Therapy Insider delivers an impartial mental health resource consolidating best available treatment guidance in one place. Their searchable addiction therapist directory assists families in identifying fully-qualified counsellors, psychiatrists and dedicated treatment facilities locally using simple screening tools filtering by exact speciality needs around juvenile gambling alongside independent reviews from verified past clients.

Beyond the therapist finder, their services also incorporate useful educational materials conveniently explaining warning signs of gambling addiction, preventative steps cultivating healthier habits and all-important proactive measures avoiding further destructive dependencies threatening adolescents.

The Road Ahead

For a long time, underage gambling wasn’t given the attention it deserves. But finally, authorities are starting to show seriousness by enforcing regulations and now even seizing winnings from underage gamblers. Tougher policies, biometric screening, and forfeitures send a clear message – exploiting minors for profit won’t be tolerated.

Still more is needed, like ramped-up education on gambling addiction and counselling tailored to increasingly tech-savvy youth. Parents must also stay vigilant in monitoring online activities while instilling balanced perspectives on gambling’s risks. Finally, there’s a need for tighter legislation that caps excessive gambling amongst the society’s most vulnerable.

It’s certainly going to be a struggle, but with the renewed efforts, there’s hope for future generations to gain resilience against the harms that come with gambling addiction.