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AGEM Announces Results of Comprehensive Economic Impact Study of Gaming Manufacturer / Technology Sector

George Miller

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AGEM Announces Results of Comprehensive Economic Impact Study of Gaming Manufacturer / Technology Sector
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Led by large slot companies, report reveals $55.8 billion total impact, $20.7 billion direct impact, 61,700 direct employees and average direct annual wage of $91,240

 

The global gaming supplier industry generated a total economic impact of $55.8 billion, supported more than 202,000 employees, including 61,700 direct employees, and supported a total of $14.1 billion in wages and salaries during 2018, according to a comprehensive report released today by the Association of Gaming Equipment Manufacturers (AGEM).

The report titled “Impact Analysis: Global Gaming Supplier Industry” was the result of an independent study commissioned by AGEM and conducted by the respected Nevada-based research firm Applied Analysis. The report (http://AGEMonline.org/Impact_Report2019.pdf) reflects a recurring update and the most comprehensive review to date of the global gaming supplier industry that analyzes the size and scope of this technology-driven sector, specifically identifying AGEM members’ global reach spanning every regulated gaming market in the world.

With 175 member companies based in 23 countries, AGEM is anchored by the world’s largest slot machine companies and AGEM Gold Members AGS, Ainsworth Game Technology, Aristocrat Technologies, Everi, International Game Technology PLC (IGT), Konami Gaming, Merkur Gaming, NOVOMATIC Group, Scientific Games and Sega Sammy Creation. The AGEM membership also includes companies active in lotteries, systems, table games, online / interactive, sports betting, mobile apps, game development, machine components and support products and services for the gaming industry.

Highlights of the report:

  • Including direct ($20.7 billion), indirect ($15.9 billion) and induced ($19.2 billion) impacts, the global gaming supplier segment generated a total of $55.8 billion of economic output (revenue) in 2018.
  • Including direct ($5.6 billion), indirect ($3.9 billion) and induced ($4.6 billion) impacts, the global gaming supplier segment supports a total of approximately $14.1 billion in annual wages and salaries to 61,715 direct, 54,856 indirect and 85,869 induced employees for a total, with the multiplier effect, of 202,440 employees. Over the past 5 years, direct employment has grown from 50,594 to 61,715, an increase of 22 percent.
  • The average direct wage per employee in the industry reached approximately $91,240 in 2018, reflecting a significant premium to the current U.S. average annual wage of $51,960, as listed by the Bureau of Labor Statistics.
  • The industry has an especially strong impact in Nevada and overall employs a broad range of workers, including high-end technical professionals and engineers responsible for hundreds of millions of dollars in research and development expenditures annually.

“Existing suppliers are growing and new players are entering the space and this report accurately reflects a dynamic sector that is focused on innovation for gaming markets throughout the world,” said Marcus Prater, Executive Director of AGEM. “In summary, the report paints a picture of a healthy overall gaming industry where commercial casinos and tribal properties are capitalizing on advanced technologies and game content from a vast array of creative suppliers to grow their business while providing their customers with new and exciting forms of entertainment.”

AGEM Economic Impact Study

  • Among AGEM Voting Member companies surveyed for the report:
    • None of the respondents expect to decrease their staffing levels during the next 12 months, with nearly one half of respondents (46 percent) expecting to increase staffing.
    • An overwhelming majority of respondents (92 percent) expect demand for their product and services to improve during the next 12 months.
    • Nearly three-fifths of respondents (58 percent) expect the economic conditions to improve during the next 12 months.
    • Respondents also answered positively about employee-sponsored health care and retirement programs, purchasing from local vendors and increasing employee numbers and salaries.
Summary of Economic Impact of Global Gaming Supplier Industry in 2018
($ in Billions) Direct Indirect Induced Total
Economic Output $20.7 $15.9 $19.2 $55.8
Value Added $10.1 $8.3 $10.8 $29.2
Wages and Salaries $5.6 $3.9 $4.6 $14.1
Employment 61,715 54,856 85,869 202,440

About the Association of Gaming Equipment Manufacturers:
AGEM is a non-profit international trade association representing manufacturers and suppliers of electronic gaming devices, lotteries, systems, table games, online technology, sports betting, key components and support products and services for the gaming industry. AGEM works to further the interests of gaming equipment suppliers throughout the world. Through political action, regulatory influence, trade show partnerships, educational alliances, information dissemination and good corporate citizenship, the members of AGEM work together to create benefits for every company within the organization. Together, AGEM has assisted regulatory agencies and participated in the legislative process to solve problems and create a business environment where AGEM members can prosper while providing a strong level of support to education and responsible gaming initiatives. For more information, visit www.AGEM.org.

About Applied Analysis and Methodology:
The 2019 edition of the Industry Impact Analysis: Global Gaming Supplier reports the annual economic impacts of the industry from 2014 to 2018. The latest report incorporates the most recent available information regarding the industry as whole and the companies operating within the market space. Applied Analysis utilized economic modeling techniques to quantify the ripple effect of the industry on the global economy. The current report is not necessarily comparable to prior editions due to a number of factors, including, but not limited to, technological advancements and the expansions of product offerings. Overall, the current research provides the most comprehensive reporting on the industry. Applied Analysis conducts a number of economic and gaming-related analyses. For more information, visit www.AppliedAnalysis.com.

George Miller started his career in content marketing and has started working as an Editor/Content Manager for our company in 2016. George has acquired many experiences when it comes to interviews and newsworthy content becoming Head of Content in 2017. He is responsible for the news being shared on multiple websites that are part of the European Gaming Media Network.

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Gambling in the USA

Stadium Casino Secures Category 4 Casino License from Pennsylvania Gaming Control Board

Niji Narayan

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The Pennsylvania Gaming Control Board has awarded a license to Stadium Casino LLC, a division of The Cordish Companies, to construct a Category 4 casino in Hempfield Township, Westmoreland County.

The award concludes the process which the Board began on January 24, 2018 when Stadium Casino LLC secured a 15-mile radius area in which it could locate a casino with a winning bid of $40,100,005 at the second Category 4 auction held by the Board.

The Board conducted an in-depth background investigation of the application along with the collection of public input from citizens, community groups and public officials at a hearing held in Hempfield Township.

Category 4 Slot Machine License permits the Stadium Casino to operate between 300 and 750 slot machines. The entity could also petition for permission to initially operate up to 30 table games for an additional fee of $2.5 million with the capability of adding an additional 10 table games after one year. The table games certification was also approved by the Board.

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Gambling in the USA

Steve Ruddock Joins BettingUSA.com

Niji Narayan

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BettingUSA.com has appointed the industry veteran Steve Ruddock as its lead analyst, content director and equity partner.

In his role with BettingUSA.com, Ruddock will spearhead content and provide his unique brand of news, analysis, and insights on the regulated US gaming industry. Ruddock will also help lead the launch of additional national and regional brands.

“I’m thrilled to join BettingUSA and work with Mike, Wes, and the rest of the team to deliver the highest quality coverage and analysis of the legal US online gambling industry. This is an exciting time to be a part of this growing and evolving industry, and there isn’t a doubt in my mind BettingUSA will be a central figure in the space,” Steve Ruddock said.

Ruddock has spent the last decade covering the legal and legislative developments in the rapidly evolving US gambling sector and brings a breadth of knowledge and relationships to BettingUSA.com.

“We’re excited to bring Steve Ruddock on board. People listen when Ruddock speaks – and for good reason. He has long served as one of the most perceptive and intelligent voices in the regulated sports betting and gambling industries. Bringing Steve on board is a big win for us and our readers alike,” Wes Burns, Editor in Chief of BettingUSA.com said.

“It is a pleasure to welcome Steve Ruddock to the team. There is no doubt BettingUSA has gained a great asset in Steve and we look forward to working together as BettingUSA grows and new markets emerge,” Mike Murphy, CEO of BettingUSA.com said.

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Gambling in the USA

Nasdaq and Interactive Brokers Become the Latest Wall Street Institutions to Enter into Sports Betting

Niji Narayan

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Photo source: history.com
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Nasdaq Inc. has revealed a new partnership with U.K. sports-betting company Football Index. The biggest trading companies in Wall Street are pushing further into the sports-betting industry.

Nasdaq agreed to provide the company with a trading engine, not unlike the one that underlies its signature stock exchanges. Football Index allows its clients to place bets, called shares, on the future success of professional soccer players.

“We’re the heavy-duty plumbing that can sit underneath [betting systems]. We are not taking peoples’ bets. It’s a matter of providing technology,” Scott Shechtman, Nasdaq’s head of new markets said.

Sports wagering is undergoing a wave of change driven by loosening regulations in the U.S. and a transformation in how bets occur. That has created new opportunities for financial services companies to deploy their trading knowledge and technologies in sports-betting business.

“The potential in sports is huge. The more legal it becomes, the more legal money that’ll flow into the pockets of the people who control the back-end infrastructure, as well as the front end,” David Rothschild, an economist at Microsoft Research said.

Just weeks before Nasdaq’s announcement, Interactive Brokers Group Inc. launched a simulated sports betting platform that allows users to place bets on real games using virtual credits provided by the company. The company is using the platform as a tool to convince users to open up brokerage accounts, as they can win up to $1000 in actual commission credits through the simulated platform.

With their announcements, Nasdaq and Interactive Brokers become the latest Wall Street institutions to dive headfirst into sports betting.

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