Annual Survey of Casino Industry Examines Seniors as Customers
LAS VEGAS, November 2000 - A new poll has found that the majority
of America�s senior citizens visit casinos for the �fun and excitement�
and cite �socializing� as far more important than actual gambling in their
decision to go to casinos. The vast majority of seniors believe gambling
is a matter of personal freedom, according to the poll, and say that people
should make their own choices as to how to spend their disposable income.
The findings of the poll, conducted by Peter D. Hart Research Associates,
Inc., and The Luntz Research Companies, are part of the second annual survey
of the U.S. commercial casino industry produced by the American Gaming
Association (AGA). Released at World Gaming Congress in Las Vegas, State
of the States: The AGA Survey of Casino Entertainment is a comprehensive
look at both the economic and social aspects of the gaming industry in
the United States.
�Since opening our doors in 1996, the AGA has been committed to serving
as a clearinghouse of information on the gaming industry, which for too
long has been plagued by misinformation and myths spread by opponents trying
to discredit gaming�s many contributions,� said AGA President and CEO Frank
J. Fahrenkopf, Jr. �Our annual survey is part of our goal to set
the record straight.�
In recognition of the growing importance of America�s elderly in our
nation�s political landscape, Fahrenkopf noted that the 2000 State of the
States features a special section dedicated to the senior population as
casino customers. �This is particularly important in our effort to dispel
the false claims made about the reasons seniors�like all Americans�enjoy
casino gaming.�
The AGA survey, for example, reports that seniors, like average Americans,
view casino gambling as a social activity, with more than 90 percent visiting
casinos with family, friends or an organized group. When compared side-by-side
with other casino customers, seniors are more likely to set a budget --
69 percent of senior citizens say they always set a budget before visiting
a casino versus 62 percent of casino customers overall. More than 90 percent
of seniors believe that people should be able to spend their disposable
income the way they want and that gambling is a question of personal freedom.
More than 56 percent say that �fun and entertainment� is the primary reason
they visit casinos.
State of the States also looked at the ways the casino industry supports
seniors in their communities. In Vicksburg, Miss., for example, employees
of the Harrah�s Vicksburg Casino and Hotel contribute to Meals on Wheels
one Saturday a month, delivering food donated by the casino to approximately
85 seniors. MGM MIRAGE in Las Vegas has established a senior community
forum that features local and national public officials in discussions
of crucial issues facing seniors, and Station Casinos, Inc., in Nevada
has similar monthly forums as part of its Very Important Seniors program.
In New Jersey, the 8 percent tax casino companies pay on gaming revenues
goes into a fund largely dedicated to seniors and the disabled that has,
since the first casino opened in Atlantic City more than 20 years ago,
collected $4.2 billion. This money funds a variety of innovative programs
benefiting the elderly, including the Pharmaceutical Assistance to the
Aged and Disabled program that provides prescription drugs to more than
200,000 state residents at a cost of only $5.
State of the States also presents interested parties with vital facts
and figures on the U.S. casino industry, which in 1999 directly employed
more than 355,000 individuals�up some 30,000 from the previous year. In
1999, the industry had a payroll of more than $9.8 billion, more than $1
billion over the 1998 amount, and generated more than $3 billion in gaming
tax revenues -
$500 million more than in 1998. The survey is broken down into sections
that include an overview of casino entertainment, data on the economic
impact of gaming, a look at casino customers and trends in casino visitation
and America�s perceptions of the gaming industry. Easy-to-use graphs and
charts also are featured throughout the survey, illustrating data such
as the locations and types of casinos nationwide and the total number of
casino industry jobs. The survey also includes state-by-state charts that
breakdown jobs, wages and tax revenues, as well as graphs that show facts
such as consumer spending on casino gaming and the most popular forms of
gaming.
SUMMARY
Commercial casino gaming has come a long way since the
first casino opened its doors in Nevada in 1931. Today, there are more
than 470 commercial casinos operating in 11 states, and the industry has
become a driving force in the U.S. economy �providing hundreds of thousands
of well-paying jobs, entertaining millions of customers, generating billions
of dollars in needed tax revenues and contributing to improvements in communities
nationwide.
State of the States: The AGA Survey of Casino Entertainment
provides interested parties with the facts about the economic and social
impacts of gaming, as well as information on the casino customer, trends
in casino gaming and the American attitude toward casino gaming. The survey
includes information and statistics primarily from public sources. Arthur
Andersen, a global professional services organization, assisted in the
compilation and analysis of this data.
OVERVIEW OF THE CASINO GAMING
INDUSTRY
For more than four decades, Nevada was the only state
where casino gaming was offered. In 1976, New Jersey voters approved legislation
to allow gaming in Atlantic City, and the first casino opened there two
years later. From 1989 to 1998, nine additional states�Colorado, Illinois,
Indiana, Iowa, Louisiana, Michigan, Mississippi, Missouri and South Dakota�authorized
commercial casino gaming.
During the past year, more than 30,000 new jobs were created
in the commercial casino industry, bringing direct employment to more than
355,000 Americans. The industry generates an additional 500,000 indirect
jobs. It also contributed more than $3 billion in gaming tax revenues to
the states and cities where casinos operated in 1999, $500 million more
than in 1998. This tax contribution is even greater when property taxes,
corporate income taxes, local use taxes and payroll taxes paid by individual
casino employees are taken into account. The gross gaming revenue for the
commercial casino industry was $22.2 billion in 1999, putting consumer
spend-ing on casino gaming on par with what consumers spent on basic cable
television.
Simultaneous with the expansion of commercial casi-no
gaming into the Midwest was an increase in Native American casinos nationwide.
Federal legislation established a regulatory framework in 1988 for the
operation of Native American casinos. Today, there are approximately 160
Native American casinos in 27 states, employing more than 150,000 people.
ECONOMIC IMPACT OF GAMING
The commercial casino gaming industry�s presence in communities
nationwide continues to generate well-paid jobs. Employees earned more
than $9.8 billion in wages in 1999, and many have reported that their jobs
in the industry helped them get off welfare, unemployment or other public
assistance programs. These individuals also are valuable members of their
communities, contributing significantly to charitable organizations and
giving generously of their time as volunteers.
In addition, taxes on casino gaming have made more dollars
available for important public purposes, such as education programs, health
care services, public transportation, and safety efforts and programs for
the elderly and disabled. The presence of casinos also has contributed
to the economic revitalization of river-fronts and downtown areas across
America.
THE CASINO CUSTOMER
Casino customers represent a slice of America, continuing
to resemble the overall U.S. population in terms of gender and age. In
areas such as income and education level, casino customers exceed the median
of the U.S. population. Most casino customers also are civic-minded�nearly
89 percent are registered voters, and 81 percent report having voted in
the last presidential election.
According to a new survey by Peter D. Hart Research Associates,
Inc., and The Luntz Research Companies, the casino customer is a responsible
customer�94 percent view casino gambling as a social activity, and 82 percent
typically set a budget before visiting a casino. A 1999 study by the National
Research Council of the National Academy of Sciences found that about 1
percent of the U.S. adult population are pathological gamblers.
TRENDS IN CASINO VISITATION
More Americans are enjoying casino gaming today than ever
before. Among the various forms of gaming, casinos are second only to lotteries
in terms of popularity.
In 1999, 30 percent of U.S. households gambled at a casino,
making an average of 5.4 trips to a casino during the year. Households
in the West accounted for 29 percent of casino visits in 1999, followed
by households in the North Central region with 27 percent. The South accounted
for 24 percent of household visits, and the Northeast accounted for 20
percent. In the three largest markets alone�Las Vegas, Atlantic City and
the numerous communities in Mississippi where casinos operate�visitor figures
topped 107 million in 1999.
AMERICAN PERCEPTIONS OF CASINO
ENTERTAINMENT
There are some who are opposed to casino gaming on moral
grounds. Overall, however, the American public continues to show overwhelming
support for casino gaming. More than 80 percent of Americans believe that
casino gaming is acceptable for themselves or others. Large numbers also
agree that casinos bring widespread economic benefits to industries and
businesses. Further, most believe a casino can be �an important part of
a community�s entertainment and tourism options� and see casino gaming
as �a good way for cities and states to generate revenue without having
to raise everyone�s taxes.�
Americans also are firm believers in individual freedoms.
More than 80 percent said that gambling is a question of �personal choice,�
and 85 percent believe that government should not be dictating how adults
spend their time and money. |
In addition to the Hart/Luntz polling data, information in State of
the States was gathered from public sources including state gaming regulatory
agencies, state gaming associations and the National Indian Gaming Association.
It was supplemented where necessary with information from Harrah�s Entertainment,
Inc./NFO Research and the consulting firm of Christiansen Capital Advisors.
Arthur Andersen assisted in the compilation and analysis of state statistics.
�We believe the 2000 edition of State of the States will go a long
way in promoting a better understanding of the gaming industry and its
role in this nation,� Fahrenkopf said.
The American Gaming Association represents the commercial casino - entertainment
industry by addressing federal legislative and regulatory issues. The association
also serves as a clearinghouse for information, develops educational and
advocacy programs, and provides leadership on industry-related issues of
public concern. |
