Oxford Economics announced the results of its 28-page study for the American Gaming Association (AGA) on Iowa’s eighteen licensed gambling venues and their revenues. According to the research, the state’s casinos contribute $2.5 billion to local economy.
A total of 16,798 people work for all eighteen venues in Iowa and they are paid almost $742 million in wages. What is more, they generate the amount of $726 million in taxes (federal, state, and local). The state taxes from gaming-related activities amount to $321.6 million.
The main purpose of Oxford Economics’ study was to examine the effect that gambling industry has on Iowa’s economy. According to Wes Ehricke, leader of the Iowa Gaming Association, casinos and the revenues they generate annually are an important factor for the well-being of the state.
As it was pointed out in the research, without the jobs that the gaming industry creates, the unemployment rate in the state would reach 5.9%. Currently, only 4.6 % of Iowa’s residents are unemployed.
More jobs are expected to be generated as a new casino is planned to open doors in August 2015.
The study that Oxford Economics conducted did not include information about three tribal gambling venues.
Geoff Freeman, leader of the AGA, pointed out that despite the results from the research, gambling operators should work more with local policymakers that will allow them take more innovative approaches, reinvest, and thus, create new jobs for residents of the state.
Recently, Mark Mellman and Glen Bolger carried out their own study on the effects of gambling industry on economy. According to the results, casinos are extremely beneficial to communities and local businesses.
Countrywide, gambling venues in the United States generate more than $240 billion in revenue. What is more, 1.7 million are employed in this industry and $38 billion are paid in taxes (local, state, and federal).
In spite of the results from the Oxford Economics’ study, some of Iowa’s casinos had a tough year. They were affected by the national recession. In addition to this, the poor weather conditions during the winter resulted in a decrease in attendance. Yet, according to Ehrecke, the gaming operators did not give up on investing in their facilities, so as to provide customers with more amenities.
Earlier this year, the Iowa Racing and Gaming Commission refused to grant casino license to Cedar Rapids, claiming that the state’s gambling market is currently oversaturated. Ehricke could not tell whether a casino in the city will have a positive impact on the numbers posted in the study. He said that this is a matter of another discussion.
Lawmakers are considering the opportunity for a change in local gambling legislation that will create a license for casinos that do not allow smoking in their premises. Their operators will be supposed to sign a ten-year memorandum, according to which part of their profits is to go to non-profit organizations and areas that do not have casinos.
