Question of the Month
September
2006
What does the
commercial casino industry look like in the Midwestern states?
Gaming has become a multimillion-dollar
industry for many states. In 2005, according to the American Gaming
Association, 455 commercial casinos operating in 11 states generated
more than $30 billion in gross gaming revenue. This figure represents
a 5 percent increase over the previous year. The commercial casino
industry also employed more than 350,000 people and paid wages
totaling over $12.5 billion last year.
And with 29 racetrack casinos in nine
states, "racino" generated more than $3.1 billion in 2005.
Five of the 11 states with commercial casinos are in the Midwest, and
one of those (Iowa) has racetrack casinos. In Iowa, gross
racino revenues totaled more than $355 million, resulting in over $84
million in distributions to state and local government.
Every state in the region with casinos
dedicates the associated revenues to certain programs, with local
government, education-related programs and various forms of economic
development being the most common uses for these funds. Illinois,
Indiana and Iowa dedicate funds to local government.
Illinois and Iowa target education
programs. Indiana’s casino revenues also go toward economic
development programs. South Dakota allocates 40 percent of its
gaming revenue to its Department of Tourism and another 10 percent to
Lawrence County, where most of the state’s casinos are located.
In the Midwest, Michigan funds
the most programs with casino revenues, including public safety,
infrastructure and capital improvements, youth programs, tax relief
and neighborhood development.
| State* |
# of casinos |
2005 tax revenue (in millions) |
| Illinois |
9 |
$749.70 |
| Indiana |
10 |
$778.78 |
| Iowa |
13 |
$265.05 |
| Michigan |
3 |
$331.93 |
| South Dakota |
36 |
$12.53 |
* Illinois, Indiana
and Iowa have riverboat and dockside casinos (Iowa also has "racinos");
Michigan and South Dakota have land-based casinos (South Dakota’s
are limited-stakes, with a maximum bet of $100).
Source: American
Gaming Association
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