GGRAsia – Casino supplier economic impact 2016 near US$48bln: AGEM

Casino supplier economic impact 2016 near US$48bln: AGEM

May 10, 2017 Newsdesk Industry Talk, Latest News, Top of the deck

The global industry for gaming equipment supply generated in 2016 a “total economic impact” of US$47.5 billion, supported more than 212,000 employees, including 55,000 direct employees, and paid a total of US$4.9 billion in direct wages and salaries, according to a report released on Tuesday by the Association of Gaming Equipment Manufacturers (AGEM).

According to a summary of the report, the sector – led by large companies specialising in the production of slot machines – generated US$17.9 billion in “direct” economic impact, US$14.9 billion in “indirect” ones and US$14.7 billion in “induced impacts”.

The total economic impact of the industry recorded a year-on-year increase of 6.2 percent, said the report. The figure was the highest since 2013, the period covered by the document.

The 39-page report defined “direct impacts” as direct spending of the global gaming supplier industry, and “indirect impacts” as secondary ones generated by businesses supporting the economic activities of the industry e.g., via supplier purchases. “Induced impacts” referred to effects on businesses that are supported by the spending of people directly employed by the gaming supplier sector.

The report said the average direct annual wage for the sector equated to US$89,400. A press release issued with the study results said the figure was “a significant premium” to the current U.S. average annual wage of US$49,630, as listed by the Bureau of Labor Statistics.

“While there have been a variety of consolidation events at the very top [of the sector] in the past few years, the rise of the next level of manufacturers along with a general expansion of new products and technology created by supplier innovations have resulted in impressive growth and a strong overall impact,” said Marcus Prater, AGEM’s executive director, as quoted in the press release.

The report was prepared by Las Vegas, Nevada-based Applied Analysis LLC. A survey was conducted among AGEM’s membership during March 2016 via email, with individual member results to remain confidential.

AGEM has 151 member companies spread across 23 countries. AGEM’s top-tier participants, referred to as “Gold Members”, include Ainsworth Game Technology Ltd, Aristocrat Technologies Inc, Everi Holdings Inc, International Game Technology Plc, Konami Gaming Inc, Novomatic AG, Scientific Games Corp, and Sega Sammy Creation Inc.