The gambling sector is one that is huge all around the planet and it generates significant revenue figures each year. In 2023, for example, it is projected that the global casino sector will make around $279.3bn in revenue. If this was not impressive enough, a figure like this would see the global gambling industry grow by 6.7% in 2023!
But why is the gambling industry so popular with people all over the world? As well as offering them a fun way to fill their spare time, gambling on casino games also delivers plenty of choice in the modern age. This is especially true in the USA, where many states have made playing the best online casino games legal and brought more choice into the market for US citizens.
Real-world casinos still popular
While online casinos show how technology and business intertwine in modern times, real-world casinos are still enduringly popular. Although the online play has really taken off lately, people still love heading to physical casino sites in person to try classics like roulette.
It is not just the entertainment choices and excitement that casinos offer which make them valuable, though. Both online and real-world casinos contribute positively to the economy. This is certainly true in the US – but how much do they bring into national coffers and what revenue sources does this include?
How much do casinos contribute to the US economy?
When you look at online and offline casino revenues, the simple fact is that the overall casino industry contributes many billions to the US economy each year. The US online gambling market size in 2021, for example, was around $9.5bn. A significant portion of this revenue went back into the national economy and shows the kind of money this niche generates per annum.
But what about real-life casinos? These can be found in many states and includes casinos in top destinations such as Las Vegas or Atlantic City. The American Gaming Association reported that offline casinos contribute around $37bn in terms of economic activity per year. When you combine this with the revenues seen in online casinos around the USA, it is easy to see the extra billions the industry puts into the economy.
But where does the money that goes into the economy from casinos come from?
Federal and state taxes
One of the most obvious examples of how casinos contribute billions per year to the economy is federal and state taxes. It is believed that over $70bn per year is paid in tax revenue by casinos that operate legally within the US.
This money is then available to be used on a local and national level to improve public services or infrastructure. To get an idea of the crucial role casinos play in tax income for the economy, it is thought that up to 3% of state and federal tax monies are derived from this sector.
Although tax is a direct manner in which casinos contribute to the country’s finances, there are other examples. Job creation is a good one and there is no doubt how the casino sector boosts employment around the country. It is believed that more than one million people are employed in this industry and this shows what positive impact casinos have on the whole economy.
By enabling more people to work and earn money, casinos help to boost consumer spending. This in turn means the wealth created by casino employment is spread throughout local and national businesses to further stimulate the whole economy.
Many states in the US rely on tourism as a major source of income for state coffers. Indeed, America as a country generates lots of income from tourists who flock to major destinations such as New York.
Casinos help with tourism as they make the US a more appealing place to visit. The legalization of online casinos in many states, for example, means people who enjoy this activity are more likely to choose America for a vacation over other countries.
The number of fun real-world casinos in iconic casino destinations like Las Vegas is also a major boost for tourism overall. The amount generated by tourists who are attracted to casinos in the US or choose to holiday in states where online play is legal is a massive boost for the entire economy.
Casino sector important for US economy
As the figures listed here show, the casino industry is undoubtedly key to financial prosperity in America. The billions it brings in each year across a variety of revenue streams would be sorely missed if they were to disappear. Although real-world casinos have always been important in this sense, the money generated by the latest online casino sites is also critical.