NEWS
US casino industry puts one cent in every dollar
The gaming sector remains a major player in the American economy, its trade association argues
While attention continues to be lavished on the Asian casino hot spots of Macau and Singapore (see story, p6), the US industry is still a major contributor to that country’s economy. That, at least, is the argument unsurprisingly put forward by the American Gaming Association (AGA), basing its assertions on a report it commissioned from consultancy The Brattle Group. Looking not only at direct expenditure in casinos, but also at the knock-
“The industry supports economic activity that stretches far beyond the places that host casinos”
on effects, Brattle came to the conclusion that in 2010, the 566 casinos across 22 states supported about $125bn in spending and nearly 820,000 US jobs in 2010. That figure is equivalent to roughly one per cent of US gross domestic product. However, in terms of both dollars and jobs, less than half was the direct impact of casino activities – they generated a shade under $50bn in consumer spending (some $15bn of it being non-gaming expenditure), and provided about 350,000 jobs. The rest was indirect. “There is no doubt the commercial casino
industry is a significant and vital part of our nation’s economy,” said Frank J. Fahrenkopf Jr., President and CEO of the AGA. “The industry generates and supports economic activity that stretches far beyond the communities that host casinos and into the greater American economy.” But not always that far. Of the $125bn headline figure that includes the indirect effects of the casino industry, two thirds was generated in the county where a casino was situated or in surrounding counties. The remaining third was further afield. What may be shifting, though, is the
pattern of where those cash-spewing casinos
are located. For example, the Las Vegas Strip will not get back to its previous 2007 record of $6.8bn gross gaming revenue until 2014, according to predictions from Global Betting and Gaming Consultants (GBGC). Said Warwick Bartlett, GBGC’s Chief Executive: “The recovery started
toward the end of 2009. In spite of a nine per cent uplift from 2009 to 2011 Vegas has a long way to go. “On current growth rates and the prospect of some Federal budget- balancing after the Presidential election, we predict that 2014 will be the year when Vegas is back to where it was in terms of revenues from gambling.”
Meanwhile, Pennsylvania has snatched New Jersey’s spot as the second biggest gaming market after Nevada, with revenue topping $3bn for the first time in 2011. That figure was more than 20 per cent up on the previous year, and should grow noticeably as more casinos are developed in the state to exploit still-unused licences.
8 MARCH 2012 GAMINGPEOPLE
AMERICAN GAMING ASSOCIATION American Gaming Association (AGA) President and CEO Frank J. Fahrenkopf, Jr. is to be keynote speaker GLI University’s 11th North American Roundtable in Las Vegas this month. Separately, the AGA board has elected Richard Haddrill, CEO of Bally Technologies, as Chairman for the next two years. Previously Vice Chairman, he follows Keith Smith, President and CEO of Boyd Gaming, in the position. James J. Murren, Chairman and CEO of MGM Resorts International, replaces Haddrill as the AGA’s new Vice Chairman. Adam Rosenberg, Managing Director and Global Head of Goldman Sachs’ gaming group, has joined the board as a Director.
ARISTOCRAT Jeffrey J. Connors is the new Senior Director of National Accounts and Business Development, returning to the firm after a seven-year stint as Vice President of Regional Sales at Bally Technologies.
COZY GAMES Tim Green has been appointed Chief Operating Officer of Cozy Gaming’s Isle of Man-licensed business.
FUTURELOGIC Ted Grevelis is now Business Development Director for the US Midwest region at FutureLogic. He was previously with IGT, where he rose to become Director of Sales, and before that was with Silicon Gaming.
GAMING LABORATORIES INTERNATIONAL Rodney Arsenault and Murray Lee have joined the professional services team of Gaming Laboratories International (GLI) in Moncton, New Brunswick. Arsenault has most recently worked for Atlantic Lottery Corporation, where he was Process Improvement & Standards Specialist for the Atlantic Lottery Corporation; Lee’s most recent position was as IT Security Coordinator for McCain Foods. GLI has also added four new team members to its development staff in the US. They are Melissa Aarskaug; Jason Krause and Teri LeBaron, both from Bally Technologies; and Lauren Roberts- York, previously in customer services for GLI.
INSPIRED GAMING GROUP Ron Babini is Inspired Gaming Group’s new Casino Sales Director for Europe, joining from IGT Europe, where he was sales manager. Jurate Bitinaite, previously Regional Sales Manager at Bally, joins as Corporate Partnership Manager for the Americas.
JCM GLOBAL Payam Zadeh, formerly EMEA Director of Sales for JCM Global, has been named General Manager. Joining the firm’s EMEA operations is Nobuyuki Sato, previously at the Tokyo headquarters, as Managing Director.
MARYLAND LIVE! Sonnette Kotze is the new VP of Finance for Maryland Live!
MICROGAMING Dominic Harrison, former CEO of the Gala Coral Group and Interim Chief Executive of the British trade body Business in Sport and Leisure, is taking up the role of Chairman of the Microgaming Poker Network’s network management board.
NEWAVE Management software supplier NEWave has formed a new professional services division, led by Senior VP of Professional Services Claudia Winkler.
RESPONSIBLE GAMBLING TRUST Marc Etches has been named as CEO of Britain’s Responsible Gambling Trust, the new organisation created by the merger of the Responsible Gambling Fund and The Great Foundation.
TCSJOHNHUXLEY Tim Klok has been promoted to Senior Business Development Manager with TCSJohnHuxley in the UK, responsible for sales to mainland Europe. He started at the firm in sales before moving to operations.
TROPICANA ENTERTAINMENT Tony Radio has been promoted to President and Chief Operating Officer of Tropicana Entertainment, but will also remain in his current position as President and CEO of Tropicana Casino and Resort Atlantic City.
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