U.S. gambling rises 5.3 percent from 2007

Americans spent more money gambling in 2007 than on movie tickets or candy, but the steady growth of commercial casinos in the past decade could take a hit next year because of a slumping economy and setbacks in building new places to play.

The American Gaming Association says 2007 commercial casino revenues in the United States hit $34.1 billion, up 5.3 percent from the previous year.

In comparison, American spent $29 billion on candy and $9.6 billion on movie tickets.

The AGA’s 10th annual State of the States report also noted that gamblers lost a record $5.3 billion at racetrack casinos, up 45.6 percent, as the number of so-called “racinos” jumped to 41 from 36 in 2006.

However, casino jobs were down 2.3 percent, with casinos in Nevada, New Jersey and Illinois cutting jobs, according to the study. The study said commercial casinos lost about 8,500 jobs in 2007, and employed fewer than 361,000 workers in 2007 compared with 369,000 in 2006.

The nation’s top gambling market remained the Las Vegas Strip, at $6.7 billion, followed by Atlantic City, N.J., at $4.9 billion and Chicago, at $2.6 billion.

Despite recent downturns in many markets, “gambling continues to be a popular and acceptable form of entertainment,” said association president and chief executive Frank J. Fahrenkopf Jr.

Higher revenues for the casinos meant more taxes paid to state and local governments. Tax revenue more than doubled nationally, from $2.5 billion in 1998 to $5.7 billion in 2007.

Farhrenkopf acknowledged, however, that 2008 might be the industry's most challenging year. With the nation's economy in a tailspin and spending and confidence levels of consumers reaching all-time lows, the nation's casino companies are feeling squeezed

In addition, the report’s annual public opinion survey found the percentage of Americans who agreed gambling is an “acceptable” activity for others but not for them rose to a record 35 percent from 30 percent a year ago.

Those who said gambling is acceptable “for anyone” fell to a record low 49 percent from 52 percent a year ago.

In March, bids for new casinos were rejected in Massachusetts and Kentucky. Coupled with failed attempts to build casinos in Ohio and Nebraska two years ago, some say rapid expansion of casinos has slowed.

"We're facing some difficult economic times," Fahrenkopf said. "People said for years that we were recession-proof. I've been saying we're not recession-proof, we're recession-resistant.

"There is no question the economy is having an impact on our industry. Airlines are cutting service and gasoline prices are impacting markets dependent on drive-in traffic."

Fahrenkopf said that tight credit markets - which have led companies to shelve or delay new projects - would likely not affect most of $53 billion in commercial casino expansion expected over the next few years.

The American Gaming Association survey collected data from state regulatory agencies on 467 commercial casinos in 12 states. It did not attempt to track results at casinos run by American Indian tribes. And this survey, of course, does not include any offshore betting such as at WagerWeb.com.