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State of the States 2019 the AGA SURVEY of the COMMERCIAL CASINO INDUSTRY State of the States 2019 THE AGA SURVEY OF THE COMMERCIAL CASINO INDUSTRY A MESSAGE FROM THE AMERICAN GAMING ASSOCIATION Dear Gaming Industry Colleague: I am pleased to present State of the States 2019: rejected harmful policies such as league royalties The AGA Survey of the Commercial Casino and official data mandates. Further, AGA advocacy Industry, the American Gaming Association’s efforts helped spark regulatory reforms in Louisiana (AGA) signature research report and the and Ohio that simplify and streamline shipping of definitive economic analysis of U.S. commercial gaming equipment, resulting in greater efficiencies gaming in 2018. for manufacturers, operators and regulators. 2018 was a transformative year for the U.S. Finally, the AGA launched its revamped website, commercial gaming sector and for the AGA. In offering members and the public better access May, the U.S. Supreme Court issued a landmark to industry news, AGA research and advocacy ruling finding theProfessional and Amateur Sports initiatives. I encourage you to visit us at Protection Act of 1992 (PASPA) unconstitutional, www.americangaming.org and take full advantage freeing states to decide for themselves whether of the AGA’s resources. to legalize sports betting. By the end of the year, residents in eight states were able to place a legal On a personal note, in December I was honored to sports wager with more expected to join them be named the new President and Chief Executive in 2019. With expanding legalization came new Officer of AGA. As just the third CEO of the AGA business opportunities, and the gaming industry’s in its history, I am eager to build on the successes previously strained relationship with professional of my predecessors who helped to enable this sports leagues began to thaw: more than two remarkable time for gaming: the industry is dozen business partnerships were signed in 2018 growing, acceptance of gaming as a mainstream between professional sports teams and leagues and form of entertainment is at an all-time high and the gaming operators and suppliers. opportunities to continue to advance the industry’s agenda are abundant. I look forward to working Helped in part by the expansion of sports betting, with you over the coming years to pursue our the commercial casino gaming sector logged its common interests. fourth consecutive year of gaming revenue growth in 2018—surging nearly 3.5 percent to $41.7 billion, With detailed information on the U.S. gaming a new historic high. New commercial casino market and financial performance data in all of the properties opened in Colorado, Massachusetts, commercial gaming states, State of the States 2019 New Jersey and New York, and voters in Arkansas provides the most comprehensive economic guide approved a constitutional amendment, making it to the commercial casino industry, and we’d like to the 25th state to legalize commercial casino gaming thank our partners at GamblingCompliance for their (and the 41st state overall with legal casino gaming, invaluable assistance in its creation. including tribal casino operations). I hope you will find this a useful reference and, as For AGA, 2018 was an important year as well. always, we value your continued feedback. In the wake of the Supreme Court decision we engaged congressional lawmakers to avert new Sincerely, federal regulations on sports wagering, educating policymakers about the robust state and tribal regulatory structures already in place across the country. AGA also helped inform state legislatures considering sports betting legislation, emphasizing William C. Miller, Jr. that the right policies are critical to the success of President and CEO a legal marketplace. As a result, states unanimously American Gaming Association STATE OF THE STATES 2019 The AGA Survey of the Commercial Casino Industry 1 INTABLE FOCUS OF CONTENTS| About This Report 3 Executive Summary | State of the Industry 5 Compendium | State of the States 19 Colorado 21 Delaware 24 Florida 27 Illinois 30 In Focus | Sports Betting 33 Indiana 36 Iowa 39 Kansas 42 Louisiana 45 Maine 48 In Focus | Innovation 51 Maryland 54 Massachusetts 57 Michigan 60 In Focus | Tribal Gaming 63 Mississippi 66 Missouri 69 Nevada 72 New Jersey 76 New Mexico 80 In Focus | Responsible Gaming 83 New York 86 Ohio 90 Oklahoma 93 Pennsylvania 96 In Focus | Gaming Machines 99 Rhode Island 102 South Dakota 105 West Virginia 108 State Regulatory & Industry Contacts 111 2 STATE OF THE STATES 2019 The AGA Survey of the Commercial Casino Industry ABOUT THIS REPORT About This Report Also excluded from state gaming revenue and This report is designed to provide a tax totals are monies derived from convenience comprehensive overview of the commercial locations with electronic gaming devices, such as casino industry in each of the 24 states with video lottery terminals or videogaming terminals, legal commercial casino gaming. in Illinois, Louisiana, Montana, Nevada, Oregon, South Dakota and West Virginia. The competitive For each of the 24 jurisdictions, the report impact of each of the above operations, however, analyzes gaming revenue and gaming taxes is noted where warranted. generated by commercial casino locations for the calendar year 2018. In addition, the report provides This report uses the term “electronic gaming an overview of the primary competition faced by device” (EGD) to refer to the various types of casinos in each state and summarizes the year’s EGDs installed in casinos, commonly known as major gaming policy discussions. “slot machines.” Although the general public may not differentiate between the various types of A table at the beginning of this report provides EGDs, there are often important regulatory and a comparative summary of the main licensing, technological distinctions between them and taxation and responsible gaming requirements specific legal definitions are applied to different applied to casino operators and suppliers categories of EGDs in different states. State- of electronic gaming devices and table specific terminology for EGDs includes video game equipment. lottery terminals (VLTs), video gaming terminals (VGTs), video poker and electronic gaming This report defines commercial casino locations machines, among others. as licensed land-based casinos, riverboat casinos, racetrack casinos (racinos) and jai alai frontons. All references to “gaming revenue” are used as It also includes casino locations in states such a substitute for more specific financial terms— as Delaware, New York, Ohio and Rhode Island including “casino win,” “adjusted gross receipts,” that offer electronic gaming devices classified “gross gaming revenue” and others—as reported as video lottery terminals and are operated by by state regulatory agencies. Gaming regulatory commercial casinos under the authority of those agencies in each state report monthly and annual states’ lotteries. revenue differently and readers should consult those agencies’ websites for further information. For the purposes of identifying commercial casino location numbers, we do not include other forms In general, gaming revenue refers to the amount of commercial gaming locations, such as bars, earned by commercial casinos after winnings taverns or truck stops with electronic gaming have been paid out to patrons. Importantly, devices, animal racetracks without gaming gaming revenue does not equate to profits earned machines such as horse and dog tracks, slot- by commercial casinos from their operations. route operation locations, instant racing terminal Such revenue is earned before properties pay locations or off-track betting operations, lottery/ for various operating expenses, marketing and retail locations, tribal gaming locations as defined employee salaries, as well as various taxes and by the National Indian Gaming Commission, card fees, among other things. Due to reporting rooms or other locations at which gaming is restrictions, commercial casino gaming revenue incidental to the primary business. does not include revenue derived from pari- mutuel betting at commercial casino race- and State gaming and tax revenue totals do not sportsbooks, except for such revenue derived at include revenue and taxes from these non- Nevada commercial casinos. commercial casino locations—with the exception of Nevada, due to its unique nature, in which Similarly, gaming tax revenue figures listed in the revenue and tax data from some locations which report reflect only specific gaming taxes paid by offer gaming as incidental to their primary casinos out of monies won from patrons. They business is included. do not include various other taxes that apply STATE OF THE STATES 2019 The AGA Survey of the Commercial Casino Industry 3 ABOUT THIS REPORT to casinos as they do to most other businesses. About the American Gaming Association They also do not include the federal excise tax of The American Gaming Association is the 0.25 percent generally applied to sports betting premier national trade group representing the handle across most states. For the purposes $261 billion U.S. casino industry, which supports of calculating state gaming tax revenue totals, 1.8 million jobs nationwide. AGA members include reported tax figures include monies directed to commercial and tribal casino operators, as well state and local governments and the specific as suppliers and other entities affiliated with the casino revenue funds established by those gaming industry. It is the mission of the AGA to entities. They also include further mandatory achieve sound policies
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