Economic Impact of New Jersey’s Casino Industry
Atlantic City is the second largest gaming destination in the United States, second to only the Las Vegas Strip in terms of gaming revenues. The economic activity generated as a result translates directly into tens of thousands of jobs for New Jersey families, making Atlantic City casino resorts one of the largest employers in the state.
The Casino Association of New Jersey believes that strong partnerships with local business, labor, community leaders, and more to improve Atlantic City will have a wide economic benefit for our region and our state.
Casinos Support Over 100,000 New Jersey Jobs
An economic impact study released in 2010 by Rutgers University found that Atlantic City casino resorts employ 38,000 New Jersey residents. In addition, the casino resorts directly and indirectly support 101,500 New Jersey jobs, based in large part on the casinos significant purchases from NJ vendors located throughout the state. That number includes approximately 3,200 year-round state-based construction jobs that are maintained by the industry each year, as a result of $700 million annually reinvested in casino capital projects.
The Rutgers study also demonstrated the need to keep Atlantic City competitive in a 21st century gaming marketplace: for every $1 million lost in total casino revenue, New Jersey would lose 19.6 jobs, $812,000 in payroll, and $334,000 in tax payments.
Casinos Power 2,200 Small Businesses in Every County in New Jersey
Small businesses are the backbone of New Jersey’s economy, and are just as critical to the success of the casino industry in New Jersey. In total, casinos spend an average of $2.3 billion annually with over 2,000 independent vendors operating in every county in the state – everything from transportation companies, meat and produce purveyors, bakeries and beverage distributors to radio stations, professional consultants and construction contractors..
Casino spending extends throughout the entire state with, $215 million spent with Middlesex County businesses, $75 million with Essex County businesses, and $42 million with Bergen County businesses, just by way of example. Clearly, the casino resorts’ impact goes far beyond southern New Jersey.
Casino Tax Revenues Support New Jersey’s Important Social Safety Net
The impact of 101,500 jobs translates into $4.2 billion in payroll income, and a total of $900 million in annual tax revenue at the state and local level. Half of these receipts go to dedicated funds that provides housing, transportation and prescription drugs for our state’s seniors and the disabled. In addition, casinos pay a specific tax that is earmarked for approximately $65 million in economic development projects statewide each year.