New Openings Spur Jump in U.S. Casino Revenue

Between the troubled economy and setbacks in states where casinos were expected to emerge, a decline in revenue for next year may be likely.

According to the American Gaming Association, U.S. casino revenues climbed to 434.1 billion in 2007. This represents an increase of 5.3% over 2006.

However, with layoffs in Nevada and New Jersey, casino jobs declined 2.3%, from 369,000 employed in 2006 to 361,000 in 2007.

Much of the increase in revenue was attributable to new openings, and cannot be expected to continue in future years as expansion cools.

Between the troubled economy and setbacks in states where casinos were expected to emerge, a decline in revenue for next year may be likely.Both Massachusetts and Kentucky rejected casino legalization bills.

Racinos around the country saw revenue rise from $3.6 billion to $5.3 billion, a jump of 46%, and employment at the track casinos rose 22%. These figures are also affected by new openings, with four of the top ten grossing racinos opening in the last two years.

American Gaming Association president Frank Fahrenkopf said in regard to the casino industry's declines in light of the overall economy, "People said for years that we were recession-proof. I've been saying we're not recession-proof, we're recession-resistant." 

Data from the AGA does not include Indian casinos, which are not regulated nor required to report earnings like government licensed casinos.