Last updated on: September 22nd, 2022
Gambling Delivers For US Economy
The positive effect of gambling on the US economy isn’t overstated. Gaming and legal sports betting generate over double-digit billions every year. This money helps state and local governments for services like education and infrastructure. This also includes new roads, bridges, and other services promoting a thriving economy. There are also factors like hotel, restaurant, and recreation that build from bettors. Consumers spend more on casinos (and associated amenities) than on luxury items like craft beer or tickets.
Gaming Supports Families, Promotes Diversity
The gaming industry alone employs nearly 740,000 Americans, which combines with the 980,000 or so jobs created by supply-line workers and employee spending to build a private sector powerhouse that is only expected to grow in years to come. According to a report released by Oxford Economics, gaming is projected to create 62,000 high-paying jobs in the next decade. Gaming, as an industry, is larger and more lucrative than the airline industry and employs a workforce twice the size of Washington, DC’s, public sector.
Gambling is all about numbers, and when it comes to employee compensation, those numbers speak for themselves. The gaming industry provides $17.5 billion in wages, tips, and benefits to workers annually, representing a total of roughly $73 billion in economic impact to help support hardworking, middle-class American families, with opportunities to bring home salaries higher than the national average.
Gaming also offers a plethora of career opportunities for its increasingly diverse workforce, more than 45% of which comes from a minority background and nearly half of which are women – again, both higher than the national average. Additionally, when one thinks of gambling, it is almost impossible not to think of the industry’s standard-bearers for diversity inclusion: tribal casinos. Native American-owned casinos returned record-setting numbers in recent years, and the trend seems ever upward. Generally speaking, tribal casinos account for about $34 billion in revenue each year.
Gaming: Helping Build America’s Middle Class
The US casino gaming industry promotes the growth of the nation’s economy, and the way it does so is twofold: by financially supporting strong communities and by empowering employees to further their careers, continue their educations, and provide for their families.
Gaming contributes to local communities in several key areas, but this is perhaps nowhere more apparent than with regard to the wide-ranging public services directly benefiting from funding provided by taxes on gambling. From affordable prescription drug programs for seniors to greater access to education options for pre-kindergarten students and ongoing education opportunities for workers, gaming plays a tremendous part in strengthening local communities across America. Year over year, nearly all of the 24 states with commercial gaming report increases in annual gross revenue, with upwards of $10 billion of that infused into state and local government budgets in the form of tax revenues. In this regard, gaming tax revenue grows at a clip of about 2%-3% per annum.
The positive impact of the gaming industry on host communities extends well beyond tax contributions and increased consumer spending in the towns, cities, and regions that are home to casinos, racetracks, card rooms, and the like. Gaming companies continue to demonstrate their commitment to their local communities by supporting employee education initiatives. Employees are encouraged to pursue ongoing education and the kind of vocational skill development required in today’s high-tech, increasingly globalized economy. Thanks to these developments, the gambling industry in all its facets is truly becoming a gateway to the American middle class and beyond for its workers.
Legal Sports Betting Industries Helping Post COVID-19 Economies
States with legal sports betting industries have had positive effects in post-COVID-19 environments. While venues and sports were both shut down for months in 2020, mobile sportsbooks still offered revenue for the economy of states that offered these platforms. And when sports and venues opened back up, people got back to work, and wagers started flooding in on countless sporting events taking place to make up for lost time. All of these profits and revenue helped states that were ravaged financially by the Coronavirus Pandemic to keep their heads above water with the industry’s contributions to the economy. Even in times of global pandemics, legal sports betting markets have proved to be a welcomed addition in helping to impact economies in the most positive ways.
Future Challenges Mean More Opportunities To Thrive
The gaming industry has grown in recent years, but his growth is not an equal distribution. Intense competition between states offering sports betting is already occurring. States without legal sports betting are seeing residents cross border to place bets. This removes the tax benefits from one state and into another. This affords policymakers to align their states’ regulatory environments. This, in time, will bring much of that otherwise lost money back into a taxable form. It is no longer a question that innovation is key to the gaming industry’s continued success. An emphasis on technological advancement will play a role in improved regulatory practices.
Sports Betting Effects On Economics FAQs
How Do States Make Money Off Of Sports Betting?
There are a few ways that state profit from sports betting. The prime way is through taxes. Every state with regulated sports betting gets a percentage of the sportsbooks’ revenue. This number comes from after the sportsbooks pay out the winners. Each state taxes sports betting on a different level. There are also application fees which usually need a renewal every few years. There is also revenue from tourism. The state collects taxes from hotels, restaurants, and other places that bettors go to.
Why Do Some States Make More Money From Sports Betting Than Others?
Every state that has legalized is in control of their own jurisdictions. Factors like population, teams, and regulations can alter the money sports betting makes. is made from sports betting. The biggest reason states can make millions more than their neighbors is tax rates. Some states tax sports betting as high as 51% while others only collect about 6%.
How Do Casinos And Sportsbooks Help The Real Estate Market?
The addition of more and more casinos only decreases the real estate market in the area. But, this is a broad statement that doesn’t run in every area. Cities that host sportsbooks like Biloxi and Atlantic City have lower housing costs. Meanwhile, areas like Las Vegas and Philadelphia can be expensive to live in. Another aspect to think about is owning and renting. In short, there are many varying factors that influence this.
What Do States Spend Their Sports Betting Tax Revenue On?
States spend their sports betting revenue on a multitude of things. This tax benefits fund schools, fix roads, and give pay increases to city workers. The revenue from sports betting can go to a general fund. But, each state allocates these funds in a way that best suits them. For example, Colorado state officials use the tax revenue to fund the state’s Water Plan.