US casino 2012 revenues are second-highest in history

According to Frank J. Fahrenkopf, Jr., Former President and CEO-American Gaming Association, 2012 marks three consecutive years of increasing growth rates for gross gaming revenue. In fact, revenue figures were the second-highest in history, which is excellent news for all of those involved in the U.S. gaming industry.

In a sign that most, but not all, gaming markets across the country are experiencing improved economic conditions, 15 of the 22 states that had commercial casinos operating during 2011 saw their gross gaming revenues increase during 2012. The largest increases — Kansas (+603.7 percent), Maryland (+142.6 percent),

Maine (+66.9 percent) and New York (+43.1 percent) — were driven by the opening of new casinos or casinos that had their first full year of operations.
The states with the largest declines in revenue, New Jersey (-8.0 percent) and Delaware (-4.7 percent), are both dealing with increased competition in the mid-Atlantic region, and New Jersey casinos also lost revenues due to the effects of Hurricane Sandy

Also of note, Ohio’s first four casinos opened during 2012, making it the nation’s 23rd commercial casino state and adding more than usus$400 million to the national revenue total.

When compared with figures from 2011, total consumer spending on gambling at commercial casinos — the equivalent of gross gaming revenue — rose 4.8 percent in 2012 to us$37.34 billion. National gross gaming revenues for 2012 reached their second-highest level in history — behind only 2007, the last year before the recession hit. The increase in revenues expectedly led to an increase in direct gaming tax contributions as well, with companies returning usus$8.6 billion to states and local communities — an 8.5 percent increase over 2011 figures. The jobs created by the gaming industry continue to provide vital employment opportunities for more than 332,000 people — a slight 0.9 percent decline from 2011 — who earned usus$13.2 billion in wages, benefits and tips during 2012.

Gaming tax contributions also rose in a strong majority of states, with 14 experiencing increases during 2012. As was the case for gaming revenues, the four states with the largest tax revenue increases — Kansas (+604.7 percent), Maryland (+143.7 percent), Maine (+48.3 percent) and New York (+38.6 percent) — each had the benefit of new properties or others with their first full year of operations.

Not all states saw their gaming revenue, tax receipts and employment rise during 2012, partly due to increased competition from new casinos in nearby markets. New Jersey experienced the largest drops in both gross gaming (-8.0 percent) and gaming tax (-8.2 percent) revenue, as it dealt with days of casino closings and reduced tourism in the wake of Hurricane Sandy and increased competition from new casinos in the mid-Atlantic region.
Delaware felt the effects of mid-Atlantic competition as well, and had the second largest percentage decreases in both gaming revenue (-4.7 percent) and tax receipts (-5.5 percent).

Top 20 U.S. Casino Markets, 2012
1. Las Vegas Strip, Nev. us$6.207 billion
2. Atlantic City, N.J. us$3.052 billion
3. Chicagoland, Ill./Ind. us$2.243 billion
4. Detroit, Mich. us$1.417 billion
5. Connecticut us$1.230 billion1
6. Philadelphia, Pa. us$1.167 billion
7. St. Louis, Mo./Ill. us$1.108 billion
8. Gulf Coast, Miss.2 us$1.095 billion
9. The Poconos, Pa.3 us$902.48 million
10. Tunica/Lula, Miss. us$821.95 million

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