Academic journal article Social Education

Gaming Revenues Boost Local, State Economies

Academic journal article Social Education

Gaming Revenues Boost Local, State Economies

Article excerpt

Surveys on Indian gaming, according to the National Indian Gaming Association, have directly and indirectly improved economic conditions on some reservations and in the counties and areas where the casinos are located.

The Wisconsin Intertribal Task Force on Gaming ordered a survey in 1996 to provide data [for] compact negotiations with the state. The report states: "It is important to note that while the Indian communities have benefited greatly from the employment and income generated by gaming, a very significant share of both the direct and indirect benefits of Indian gaming accrues to the non-Indian community as a result of the employment of non-Indians, purchases from the non-Indian vendors, and the indirect effects resulting from the re-spending of income generated by the Indian casinos."

An example of the direct impact points out an employment increase of from 1,422 people in 1991 to 14,073 in 1995 in the areas in Wisconsin where casinos are located. At the same time, Aid to Families with Dependent Children (a welfare service) was reduced in the state of Wisconsin by 28 percent, according to the Wisconsin Department of Social Services. Total wages paid increased from $20 million to $160 million in five years. By adding in the multiplier effect (a formula used to determine the impact of circulated money in a community), the benefit to Wisconsin was more than $450 million. Federal and local taxes were paid on salaries earned at casinos.

Visitors from outside Wisconsin who came to the casinos wagered $381 million, and another $38 million was spent for non-gaming activities at restaurants and bars, motels, [and gift shops]. …

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