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The U.S. gaming industry is on nothing less than what could be dubbed a rampage. It’s a powerful business that’s continuing to spread to nearly every corner of the country.

More and more, individual states are looking to casinos as a great way to pump up their coffers. With every passing year there are new record breaking tallies of taxes reaped from gaming. Most recently Pennsylvania and parts of Kansas legalized gaming and coming soon: Massachusetts and more slots in Maryland.
According to the American Gaming Association (AGA), gross

gaming revenues for the U.S. commercial casino industry climbed 6.8 percent in 2006 to reach a new record of $32.42 billion. And more than four in five (82 percent) American adults say it’s an acceptable activity for themselves or others.
“The industry’s performance upholds our ongoing legacy of providing good jobs, making significant tax contributions and fostering positive economic environments in the communities where we operate,” said Frank J. Fahrenkopf, Jr., president and CEO of the AGA.
With more casinos opening every year, the industry is

continuing a rapid expansion that’s been accelerating ever since Native American tribes were given the right to open casinos on tribal land. That ruling, the Indian Gaming Regulatory Act of 1988, has opened the floodgates for casino expansion. Previous to that landmark legislation, casinos were only in Nevada and in Atlantic City, NJ, which legalized casinos in 1978.
At the end of 2006, the most recent figures available, there were 460 commercial casinos in 11 states directly employed 366,197 people. These employees earned a total of $13.3 billion in salaries, including benefits and tips, which equates to a 5.6 percent increase over 2005 figures. Casinos also supported the communities and states where they operate, contributing $5.2 billion in direct gaming taxes to state and local governments in 2006, a 5.5 percent increase from 2005. These taxes were used to fund education; historic preservation; economic development; health care initiatives; youth, senior citizens’ and veterans’ programs; and other important community initiatives.
Oddly, however, the casino gaming business and the lodging

industry are still widely separated behind the scenes, though more than half of revenues from casinos in places such as Las Vegas are generated from hotel rooms, meeting facilities and other amenities such as spas and restaurants.
   For example, the average daily room rate for non-package visitors to Las Vegas was $107.12 in 2006, up significantly from $81.43 in 2003, $86.22 in 2004, and $99.51 in 2005. Additionally, their average expenditure on food and drink in 2006 was $260.68, up significantly from $208.81 in 2003, $238.32 in 2004, and $248.40 in 2005.
   The racetrack casino, or racino, segment of the commercial casino industry continued its multi-year trend of growth and expansion in 2006, with 36 racetrack casinos in 11 states generating $3.62 billion in gross gaming revenues, a significant 16 percent increase over 2005 totals. Employment at racetrack casinos also grew considerably during 2006, with the sector employing 22,308 individuals, a 30.3 percent increase over the previous year’s figures. In addition, racetrack casinos’ contributions through direct gaming taxes to state and local governments increased by 12.5 percent to reach $1.44 billion in 2006.
   More than a quarter of the U.S. adult population visited a casino in 2006, according to the State of the States report. These 56.2 million casino visitors made a total of 371 million trips, an increase of 3.4 million visitors and 49 million trips over 2005 figures. The survey results show casino visitors are enjoying the increasingly diverse array of entertainment options available at casinos, with 82 percent of casino visitors saying they ate at a fine dining restaurant as part of a casino visit during the past year. Additionally, more than twice as many Americans say the overall casino experience—the food, shows, entertainment and everything else—is more fun for them than the actual gambling.
   Incredibly, poker is still exploding, performing strongly in 2006 with 14 percent of Americans saying they played poker during the past year. Revenues from poker in 2006 reflect a substantial 15 percent increase over 2005 figures, with players spending more than $238 million on casino poker in Nevada and New Jersey alone. In addition, there were 713 card rooms in five states in 2006, and the four states that track card room revenues reported $1.1 billion in revenue last year.
   Sports betting – which is only legal in Nevada – saw $2.4 billion wagers. Revenues from the activity totaling $192 million, about eight percent of the total amount wagered.

Glenn Haussman, Hotel Interactive's Editor In Chief, has been specializing in the hospitality industry for more than 10 years. He often speaks at lodging industry events, is quoted frequently as an expert source by newspapers and is an adjunct professor at New York University.