The U.S. economy benefits greatly from the casino gaming industry, as highlighted in a recent study conducted by Oxford Economics on behalf of the American Gaming Association (AGA). The findings reveal that commercial casinos and other gaming operations make substantial contributions to the US economy, generating $53 billion in tax revenue and close to $330 billion in business sales, as well as providing stable employment to over 1.8 million Americans with over $100 billion in wages paid in 2022.
The same AGA report also highlights the substantial positive impact of commercial casinos and other gaming operations in New Jersey. More specifically, the data shows the gaming industry contributed $11.9 billion to the state’s overall economy in 2023.
The figure represents a remarkable 10% increase from the previous year, highlighting the industry’s resilience and potential for continued growth. A closer look at the numbers shows the full scope of the economic impact, which includes nearly 52,000 stable jobs to New Jersians and over $1.9 billion in tax revenue for the Garden State.
Beyond that, gaming taxes help provide crucial funding for senior citizen support, disabled resident programs, and the public education system in New Jersey. A portion of the tax revenue is allocated towards bolstering economic development initiatives and supporting law enforcement efforts, the AGA report shows.
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Employment and Job Creation
According to data from the AGA research, gaming supports over 51,000 direct jobs in the state. This includes positions on casino floors as well as corporate roles. When indirect and induced employment is accounted for, the total job number rises to over 52,800. From Atlantic City to northern counties, casinos are a major employer.
Altogether, around 51,834 people find employment within the New Jersey gaming industry, providing livelihoods and supporting families across various communities. This translates to roughly 1 out of every 17 jobs in the state’s leisure and hospitality sector, demonstrating the industry’s significant role in job creation.
Economic Output and Growth
In terms of overall economic contribution, the gaming industry generated $11.9 billion for New Jersey’s GDP last year. This year, online and land-based casinos in the state have performed equally well, with $457 million reported in combined revenues for June alone, according to AP News.
This level of output had ripple effects across other sectors as well, and this figure will likely go up as New Jersey operators embrace in-play wagering and other forms of micro-betting.
Everything from construction and tourism to transportation and small businesses benefits from the economic contribution of the gaming industry. As the industry expands access through mobile betting, its economic footprint will likely continue increasing.
Tax Revenue for the State
Commercial casinos and other gaming operators paid $1.9 billion in taxes to New Jersey last year. These funds are channeled towards funding essential public services such as education, infrastructure, and public safety, ensuring the well-being and development of New Jersey residents.
Besides, individuals who engage in gambling activities are required to fulfill their tax obligations on the winnings they acquire from online casino platforms in New Jersey. The tax rate imposed by the state stands at 3%. However, it is important to note that lottery winnings are subject to different treatment, as outlined in this comprehensive guide addressing the tax liability of gamblers in New Jersey.
As online casino options grow the industry’s customer base, tax revenue streams are poised to remain substantial. They will contribute significantly to state coffers, generating billions more in tax revenue in the coming years.
Small Business Support
The thriving gaming industry serves as a vital support system for a diverse range of small businesses within the state. From hotels and restaurants to retailers and transportation providers, these businesses benefit from the increased foot traffic and economic activity generated by casinos and gaming establishments. This support fosters a thriving ecosystem of small businesses, contributing to the overall economic health of New Jersey.
Community Investment
Casinos and gaming companies recognize their responsibility to the communities they operate in. Through various initiatives, such as charitable donations, sponsorships, and workforce development programs, they actively invest in giving back.
These investments not only enhance the quality of life for residents but also contribute to social well-being and strengthen the fabric of New Jersey communities.
Gaming Fueling Essential Services in New Jersey
Tax revenue generated by the gaming industry plays a crucial role in funding essential public services that contribute to the state’s overall well-being. On the education front, a significant portion of gaming tax revenue is allocated to supporting the public school system across New Jersey. This investment ensures students receive quality education, equipping them with the knowledge and skills needed for future success.
Gaming tax revenue also helps fund vital programs that provide support and assistance to individuals with disabilities in New Jersey. These programs empower individuals to live fulfilling lives and contribute meaningfully to their communities.
As noted in the AGA report, gaming tax revenue contributes to programs specifically designed to support senior citizens in New Jersey. These programs provide essential services, ranging from healthcare assistance to recreational activities, ensuring the well-being of the state’s aging population.
The same goes for law enforcement support. Funding for law enforcement agencies across New Jersey is bolstered by gaming tax revenue. This ensures public safety and security for communities, allowing residents to live and thrive in a safe environment.
Atlantic City at the Epicenter of New Jersey’s Gaming Industry
While the entire state sees gaming’s impacts, Atlantic City remains the epicenter as the original East Coast gambling destination. Multiple resort casinos line its boardwalk, entertaining visitors from around the tri-state area.
As the most developed gaming market, Atlantic City accounts for a major portion of New Jersey’s overall revenue and employment figures. Its success helped pioneer the industry’s expansion.
Wrapping Up
The gaming industry has undeniably established itself as a vital pillar of the New Jersey economy. Gaming tax revenue is strategically utilized to support initiatives aimed at bolstering economic development within the state. These initiatives create new jobs, attract businesses, and strengthen the overall economic landscape of New Jersey.
