The AGA presents the 10th annual State of the States: The AGA Survey of Casino Entertainment. Included in the report are details of the national and state-by-state economic impact of commercial casinos, along with data examining the continued growth of the racetrack casino sector. State of the States offers an in-depth look at casino visitation, profiles the American casino gambler, and features polling data indicating the acceptance of casino gaming remains high.

National Economic Impact of Casino Entertainment
2007 was another year of steady growth in the U.S. commercial casino industry as it continued to be a significant contributor to the national economy and local communities across the country.

The industry’s growth was spurred by the expansion of commercial gaming into new states such as Pennsylvania, the opening of new properties in existing jurisdictions like Louisiana and Iowa, the continued reinvestment in existing gaming properties throughout the United States, and the continued redevelopment of the gaming industry that was severely damaged by Hurrican Katrina.

Gross gaming revenues continued the modest but steady growth exhibited in past years to total $34.13 billion in 2007 — a 5.3 percent increase over 2006 figures. Of that total, $5.79 billion were paid back in the form of direct gaming taxes to the states and local jurisdictions where commercial casinos are located. The 467 commercial casinos across the country employed 360,818 individuals in 2007, who earned a total of $13.8 billion in salaries, including benefits and tips.

Gross gaming revenues increased or held steady in all but one state in 2007, with the largest increases experienced in Iowa (16.2 percent) and Mississippi (12.5 percent). The opening of a new property and the first full year of operations for three others drove the increase in Iowa, while Mississippi’s gains were due to the fact that 2007 was the first full year of operations since Hurricane Katrina for many of Mississippi’s Gulf Coast properties.

The economic slowdown that started in the fourth quarter of 2007 led to a slower rate of revenue growth in some states. New Jersey saw its gross gaming revenues decline by 5.7 percent as a result of the economic slowdown, increased competition from new gaming jurisdictions and changes to local smoking laws.

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GLOSSARY OF GAMING TERMS
Bingo: A game of chance in which each player has one or more cards printed with differently numbered squares on which to place markers when the respective numbers are drawn and announced by a caller. The first player to mark a complete pattern of numbers (e.g., a row) wins.

Class I Game: A social game that is not considered a game of chance, played solely for prizes of minimal value; or a traditional form of Indian gaming engaged in by individuals as a part of or in connection with tribal ceremonies or celebrations.

Class II Game: A game of chance including (if played in the same location) bingo, pull-tabs, lotteries, punchboard and other games similar to bingo, whether live or electronic, in which players bet against other players; an electronic game played on a “linked” video gaming device that is connected to a central computer system.

Class III Game: Any form of gaming besides a Class I and Class II game, including electronic gaming devices with random-number generators and house-banked table games.

Commercial Casino: A private-sector establishment (i.e., nongovernmental) — whether land-based, riverboat, dockside or limited-stakes — that offers games of chance and is regulated and taxed by the state where it is located.

Dockside Casino: A casino on a body of water that is not required to cruise or is a permanently moored barge.

Effective Tax Rate: The total percentage a casino pays in taxes, including taxes on direct gross gaming revenue and admissions as well as corporate, payroll, real estate and other taxes similar to those paid by other businesses.

Electronic Gaming Device, or EGD: Any mechanical or electrical game of chance, including slot machines, video lottery terminals (VLTs) and video bingo, video pull-tabs and video poker machines.

Gross Gaming Revenue: The amount a gaming operation earns before taxes, salaries and other expenses are paid — the equivalent of “sales,” not “profit.”

Handle: The estimated total amount wagered, including the winnings returned to players.

House Advantage: A measure of how much a casino expects to win, expressed as a percentage of the player’s wager.

House-banked Game: A game in which the player bets against the house; Class III games (e.g., blackjack and other table games).

Land-based Casino: A casino that is built on an earth foundation, not on a waterway.

Limited-stakes Casino: A casino in which the allowable bet on a single hand is limited to a maximum wager.

Odds: 1) the probability of winning; 2) the payout in relation to amount wagered, e.g., winning odds.

Pari-mutuel: A system of betting on races whereby the winners divide the total amount bet, after deducting management expenses, in proportion to the sums they have wagered individually.

Player-banked Game: A game in which the player bets against other players; Class II games (e.g., bingo and pull-tabs).

Pull-tabs: A game of chance in which a player opens perforated windows on a paper card, matching symbols on the card to win. Each group, referred to as a set, of pull-tabs has a unique prize structure; winners collect the prize that correlates to the specific pull-tab set.

Racetrack Casino, or Racino: A hybrid of a pari-mutuel venue — horse track, dog track or jai alai court — and a casino. Typically, the “casino” at a racino offers only slot machine games.

Random-number Generator: A mechanism inside the computer of a Class III game that ensures that each pull has an equal chance of hitting the jackpot.

Slot Machine: Any mechanical or electrical device in which outcomes are determined by a random-number generator located inside the terminal.

Video Bingo: An electronic version of traditional bingo.

Video Lottery Terminal, or VLT: An electronic game of chance played on a video terminal that is networked and can be monitored, controlled and audited by a central computer system. These games are authorized through the state lottery and considered by law to be lotteries, not commercial gaming.

Video Pull-tabs: An electronic version of paper pull-tabs.

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