A California Gaming Association commissioned report has found that the state’s cardroom industry generates a total annual economic impact of $5.6bn, as well as providing over 32,000 local jobs.
Undertaken by John Dunham and Associates, the review focused on the direct, indirect and induced economic impact cardrooms have on California communities. A subsequent analysis reviewed jobs, wages, linked industries, state and local tax dollars and total economic output.
In total it is said that the state’s cardroom industry directly and indirectly creates about 32,425 living wage jobs with wages and benefits estimated at $1.64bn. Tax revenue generated totals approximately $500m, with $398.8m in state taxes and $100.9m in local jurisdiction gaming taxes.
“The data is clear, the cardroom industry is a vital part of local economies, creating irreplaceable jobs, needed state and local taxes to support local services, and, all totalled, a significant economic impact on California’s economy,” said John Dunham, president of John Dunham and Associates.
The jobs, wages, and tax dollars provided by cardrooms serve as a vital economic stimulant in communities across California, the report stipulates.
Local cardrooms support communities, and in some cases, entire cities where over 50 per cent of the local general fund budget is derived from city gaming taxes.
“The economic impact report illustrates what we know and experience every day – local cardrooms are essential to California communities across the state,” said Kyle Kirkland, president of the California Gaming Association.
“California cardrooms provide tens of thousands of steady, living wage jobs, providing an opportunity for working Californians to support themselves and their families.
“Furthermore, cardrooms across California spark additional economic activity, revenue and jobs by their presence and provide valuable tax revenue to host communities.
“In fact, some cardrooms generate over 50 per cent of a city’s general fund revenue, providing the majority of funds for emergency services, fire departments, parks and other critical city programs and services.”