Gaming Guru

Mining Data from the AGA's State of the States Report

The American Gaming Association has issued its annual State of the States report, and there's an intriguing little tidbit to be gleaned from casino revenue data.

Of the 13 states to have legal licensed, commercial casinos, eight showed revenue drops in 2009 as compared to 2008. Four had revenue drops, and one --- Kansas --- opened to casinos just last year. The drop is only natural. The continuing economic sag has hit casinos just as it has other businesses.

Hardest hit were the states most dependent on tourists. New Jersey, which faced growing competition in Pennsylvania along with fewer travelers to Atlantic City, declined 13.3 percent, to $3.9 billion in gaming revenue. Nevada, where Las Vegas has been the gamblers' paradise for generations, dropped 10.4 percent, to $10.4 billion. Mississippi, which also draws tourists to its Tunica and Gulf Coast regions, fell 9.4 percent, to $2.5 billion.

Among states more dependent on local players, Illinois dropped 8.9 percent to $1.4 billion, Louisiana was down 5 percent to $2.5 billion, Iowa down 2.8 percent to $1.4 billion. Michigan down 1.5 percent to $1.3 billion at its commercial, non-Native American casinos, and South Dakota, with its low-limit gaming, down 0.4 percent to $102 million.

Intriguing are the four states that showed gains. In Pennsylvania, up 21.6 percent to $1.96 billion, the steep rise was due mainly to the opening of new casinos in Bethlehem and Pittsburgh. Colorado, up 2.6 percent to $735 million, raised betting maximums on table games from $5 to $100 a hand.

That leaves Indiana and Missouri as risers that aren't quite so easily explained, but they do share a common bond. Both have casinos in direct competition with Illinois, which showed the largest drop in gaming states most dependent on local players. And in Illinois, the effects of the recession have been compounded by a ban on smoking in public places. The smoking ban went into effect at the beginning of 2008, and casino revenues have yet to stabilize.

Part of the effect of the ban is that smokers are spending less of their day at the casino at the games. Casinos have built outside smoking shelters, but operators point out that a customer who spends 10 to 20 minutes out of each hour at the shelter instead of at the games is generating less revenue.

But the ban also is driving some business to neighboring states. In some areas, it's just as easy to get to St. Louis or St. Charles, Mo., as it is to get to East St. Louis or Alton, Ill.,. and just as easy to get to Hammond, Gary or East Chicago, Ind., as to Joliet, Ill. If you're a smoker, traveling out of state to play might be the path of least resistance.

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Some other tidbits from the AGA's State of the States report:

** In 2009, commercial casinos in the United States employed 328,377 people, paid wages of $13.1 billion, earned $30.74 billion in gross gaming revenue and paid $5.59 billion in direct gaming taxes.

** A survey by VP Communications, Inc., and Peter D. Hart found that 28 percent of American adults, and 42 percent of those living in counties with casinos, visited a casino to gamble at least once in the last year.

** Just about as many women as men --- 29 percent of men, 28 percent of women --- said they played in casinos in the last year.

** Slot machines were a runaway favorite among players, with 59 percent of those who played saying slots were their favorite game, with 18 percent for blackjack, 7 percent for poker, 6 percent for roulette and 5 percent for craps.

** Among slot players, 25 percent said they like the games because, "I'm not going to be embarrassed because they are less complicated and have fewer rules," and 24 percent said, "there is less pressure, and I can play alone at my own pace." Fifteen percent said, "They are more entertaining and fun."

** Forty-seven percent said today's slot machines are more interesting and engaging than older slot games.

** A whopping 91 percent of those surveyed said they set a budget before playing in a casino, and 48 percent said that budget was less than $100 for a casino visit.

** Asked about the acceptability of casino gaming, 45 percent said gambling in casinos is perfectly acceptable for anyone, 36 percent agreed it's "acceptable for others but not you personally," and 17 percent said it's not acceptable for anyone.

** Asked, "Regardless of whether or not your state has hotel-casinos, which of the following reasons do you think is the best reason for casinos to be allowed in your state," 36 percent choose job creation. Next was taxes, with 21 percent, followed by tourism generation and economic development, with 11 percent each, and entertainment and dining options, with 6 percent. Ten percent said there is no good reason to permit casinos in their state.