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Jobs, Casino Revenue Decline In 2009 Due To Recession

Posted on May 9th, 2010

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Overall revenue from casino gambling in 2009 dropped 5.5 percent in eight of twelve states that have casinos, or a decrease of $1.8 billion from the $32.5 billion revenue in 2008. This was announced Thursday by the American Gaming Association. “There’s no way to sugar coat it,” says the association’s CEO Frank Fahrenkopf, Jr. “The past year was tough.” According to the association, the four states that reported a rise in casino gambling revenue in 2009 are Indiana, Missouri, Colorado and Pennsylvania. Casino revenue increased in Pennsylvania because of the opening of two casinos in that state last year.

Colorado’s gain was attributable to the extension of casino hours and the addition of more games, while Missouri saw an increase because the state’s casinos have removed limits on losses. The state of Kansas saw revenue of $2 million when its first casino started business in December. Lottery ticket sales, however, did not see a big decline. According to La Fleur’s 2010 World Lottery Almanac, overall lottery revenue in fiscal year 2009 was $53.1 billion, while in fiscal year 2008 was $53.4 billion, showing a minimal decrease.

The American Gaming Association said slot machines and table games revenue from race track casinos grew 5 percent to $6.4 billion in 2009, which does not include revenue from pari-mutuel wagering on the races. The rise was due in part to Indiana’s revenue increase of 105 percent in 2009 because its two race track casinos opened that year. Of the twelve states that have race track casinos, six posted increases and six saw decreases, with Maine getting the biggest growth at 17.2 percent, and Iowa seeing the biggest decline at 6.7 percent.

Last year, overall tax revenue paid by casinos to state and local governments was $5.6 billion, a decline of 1.6 percent from 2008. The recession affected many jobs as well. The association reported that around 328,000 workers were employed in casinos in thirteen states last year, compared with about 357,000 in 2008. In general, Fahrenkopf attributed the setback to gamblers controlling their budget and reducing their spending during the recession.”People had less money to spend on our products,” he says. “Until people go back to work, businesses that depend on discretionary income are going to continue to struggle.”