Survey Offers Facts On Internet Gambling

Published: Tuesday, May 09, 2006 Online-Casinos.com

AGA SURVEY HAS SOME INTERESTING FACTS ON INTERNET GAMBLING

America's land casino interest in the online sector is clearly growing

The American Gaming Association is certainly doing its bit to focus attention on the Internet gambling sector, judging by recent announcements. First it was the recommendation that before banning the popular online entertainment in the USA the Congress should investigate the phenomenon, and now the industry rates a mention in the Association's latest survey.

Presenting the results in his 2006 States of the States address, the president of the AGA Frank Fahrenkopf says that the typical U.S. Internet gambler is under 40, college-educated, male and more affluent than his fellow citizens, according to results of a new survey: The AGA Survey of Casino Entertainment.

According to the poll of Internet gamblers, conducted by Peter D. Hart Research Associates, Inc., fully 70 percent of respondents started gambling online within the past two years, indicating the growing popularity of this activity.

In a shocking indictment of the less principled operators who are unfortunately still active in the industry, however the survey found that while Internet gamblers in the U.S. say they enjoy online gambling for its convenience, more than half (55 percent) believe online gaming companies find ways to cheat, and 46 percent believe their fellow players cheat.

The survey also revealed a great deal of confusion about the legality of online gambling, with a mere 19 percent of respondents "...realising - or willing to admit - that the activity currently is illegal in the U.S."

"Even though our member companies currently aren't involved in the online gaming market, and the overall percentage of Americans who gamble online is relatively small, there's no doubt this issue has captured the attention of the media, members of Congress and the American public," said Fahrenkopf.

"We strive to make each year's State of the States report the most comprehensive information resource not only on the current state of our industry, but the most significant emerging trends in gaming, so it was important that we take a look at this growing phenomenon."

The report also includes comprehensive economic impact data on the U.S. commercial land casino industry, which indicate the industry in 2005 generated more than $30 billion in gross gaming revenues for the first time ever.

Last year, the 455 commercial casinos in 11 states generated $30.29 billion in gross gaming revenue, representing an increase of nearly 5 percent over 2004 revenue totals. Individual gaming markets also witnessed landmark success, with Las Vegas revenues surpassing $6 billion and Atlantic City revenues climbing above $5 billion for the first time.

Survey data also indicate the industry continued to be an important source of employment in the areas where it operates, providing more than 354,000 employees with wages totaling more than $12.6 billion, including benefits and tips. The industry also continued to be a major source of tax revenues, contributing $4.92 billion to state and local governments in 2005, an increase of just fewer than 5 percent from 2004 totals.

State of the States also includes a detailed look at the growing economic impact of racetrack casinos, or racinos. In 2005, the 29 operational racetrack casinos in nine states generated $3.12 billion in gross gaming revenue, a more than 9 percent increase over 2004 figures. Racinos employed 17,000 people in 2005 and distributed $1.28 billion in direct gaming taxes to state and local governments.

This year's survey once again features a special section devoted to poker. The data indicate that the poker boom that started in 2004 is still going strong, with nearly one in five American adults (18 percent) again reporting they played poker last year. The opportunity to spend time with friends and family, followed by the skill and strategy involved in the game, are the top reasons people play poker, according to results of a national poll conducted by Luntz, Maslansky Strategic Research.

Poker revenues also continued to surge in 2005. In Nevada and New Jersey, the only commercial casino states that track poker revenue, U.S. casino visitors spent more than $207 million on organised poker last year, an stunning 37 percent increase over 2004 totals.

Survey results also indicate overall acceptability of casino gambling remains high, with nearly 80 percent of respondents saying it is acceptable for themselves or others. According to the poll, Americans also continue to overwhelmingly view gambling as a question of personal choice (83 percent), and nearly three-quarters (72 percent) see casinos as a valuable part of a community's entertainment and tourism options.