Casino Industry Strategy Case Study Essay

6573 Words Nov 6th, 2010 27 Pages
Assignment 1 - the Casino Industry 1. Introduction - current situation overview

The three most common forms of casino gambling in the USA are the land-based, the river-boat and the Native American gambling.
During the year 2009, the commercial casino industry used to employ about 375000 people earning around $13 billion in wages, making it one of the biggest industries in the USA.
Commercial casinos are a major part of the actual entertainment landscape. For proof, ¼ of the U.S. adult population spends money at a casino at least once a year.
Casinos are one of the main contributors to the economy of the USA contributing to this with total revenue around $32.5 billion in 2009. They are very important to the states in which they
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The Native American Indian Casinos have realized to help global economy using the rise of gambling activity as a tourism policy. Today, 330 casinos are managed by about 200 tribes across 28 U.S. states. In Iowa, casinos bought $293 million to firms established in their state, representing 92% of their total spending on products, supplies and services. This is highly representative of the importance of casinos for America’s economy.


Casinos are subject to taxation on their profit, which are useful for states and economy. The Tax rates on casino revenues range from 6.25% in the state of Nevada to 35% in Illinois. However taxes on casinos do not represent a highly important source of public sector revenues. Moreover, Indian casinos are not subject to taxes. The main problem with taxation is that it could both increase and decrease other kinds of tax revenue, if they generate or cannibalize other business.
The casino industry is taking a real part into the political process. The most common one is of course regarding taxations, but some of them are also donators for candidates in politic chairs.
The global gaming industry (Indian casinos, sports wagering and all the related businesses) has a rank pretty impressive (28th), compared to Insurance, Banking and Security Industries, regarding the
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