A survey conducted in 2016 in America shows that Casinos stimulate employment in their area. Small businesses benefit from the presence of a casino. And the government and population also benefit. The results of the study were recently announced.
Gambling is illegal in almost all states of America. Nevertheless, licenses have been issued to casinos everywhere. The American casinos directly employ around 800,000 employees. In addition, there are more than 550,000 people working in supporting companies of the casino itself. And more than 350,000 for services that indirectly involve the casino.
Employment in the area
American casinos have increasingly been given a place in a town or village that reflects the surroundings. They provide direct additional employment with small businesses. In addition, casinos attract visitors who ensure economic growth at shops, for example.
In 2016, they created at least 350,000 extra jobs by having work done at companies in their area. That is twice as many jobs as there are dentists in America and more than the total employment in freight transport.
Casinos generate $ 52 billion in revenue from small brokerage, healthcare, communications, science and several other industries. The contribution to the state treasury of that activity between casinos and small businesses is $ 7 million in taxes. That is in addition to the 9 billion dollars that US casinos paid in 2016 in taxes on their direct sales.
Casinos contribute $ 13 billion directly and indirectly to salaries of employees of small businesses. In half of the cases, this concerns restaurants, drugstores, banks and other companies that are seeing growth through the visitors of a casino.
The researchers of the American Gaming Association saw that the influence is great, of the presence of a casino in the area. That applies to the whole of America. But the influence and contribution is mainly felt by small to medium-sized communities. There they also saw the existing local companies work together more closely and adapt to the activities of the casino.
I will take a municipality from the study as an illustration. Council Bluffs. It is a municipality in Iowa with roughly 65,000 residents. In 2015, they received around $ 150 million in municipal taxes and other income.
Council Bluffs has several casinos. In 2015, they bought nearly 300 million dollars, twice the municipal income, of products and services from companies in the municipality and in the surrounding area.
Contribute to sales
“The research shows that the casino industry has a powerful influence on the development of small businesses in different ways. That happens through the purchase of goods and services to the impact on the increase in employment and research in multiple markets, ”summarizes the research, Michael Pollock, director of Spectrum Gaming Group.
However, the investigation also revealed that the initiative almost always came from the casinos. Companies, especially smaller ones, therefore miss out on opportunities. They can achieve more revenue by better positioning themselves at casinos.
That is why the American Gaming Association is going to visit small businesses in environments where casinos are located or will be established. They want to show the benefits of the casinos, the opportunities for cooperation and the way in which local businesses can benefit from casinos.
It is a multi-year campaign that has emerged from the results and findings of the research.
Figures can seem interesting. The stories of existing situations better support the title of this article. Such as the story of the Harrah's casino in New Orleans. This also shows how the government blocks developments with often wrong arguments.
In 1992 a law was passed in New Orleans. This allowed Harrah’s casino to settle there. A hotel and restaurant were not allowed. The government stopped that because hospitality entrepreneurs from the “French Quarter” were against it.
For years the casino struggled to attract visitors, until finally the catering restrictions were lifted. In 2006, Harrah’s New Orleans opened a 26-storey hotel with 450 rooms. Nobody in the area has ever thought about what it was like. Because the influence turned out to be enormous, for example on the customers at the surrounding shops and restaurants and the cooperation with surrounding companies.
Only the New Orleans Times later looked back at the past: In 10 years, Harrah's has invested a billion in improvements, including the development of Fulton Street. The casino and hotel paid 885 million in wages and rewards at the time … and in recent years, the casino has become an important marketing tool for the local hospitality industry and for New Orleans.
Albert Heijn and Jumbo
In the past, the middle class in the Netherlands reacted in the same way to the arrival of large branch companies, especially supermarkets. In the meantime, every shopkeeper wants such a large store in his mall or neighborhood. Because the many people they attract also walk into the smaller stores for additional groceries.
What about casinos in the Netherlands? What influence does a slot machine casino have on the environment? Or a casino like Holland Casino and Krijco? The American study may also be a boost for the Dutch government. Until then we will of course continue to play online.