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New Report Finds California Cardroom Industry Generates Over 32,000 Jobs and Nearly $5.6 Billion in Annual Impact on State's Economy

Cardroom industry supports $1.64 billion in total wages and $500 million in state and local taxes that play a vital role in underserved communities throughout California


News provided by

California Gaming Association

Nov 08, 2019, 12:30 ET

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SACRAMENTO, Calif., Nov. 8, 2019 /PRNewswire/ -- A new economic impact analysis report released today found the total annual economic impact of California's cardroom industry to be $5.6 billion dollars, providing over 32,000 in total local jobs. Commissioned by the California Gaming Association, John Dunham & Associates conducted an in-depth review of the direct, indirect and induced economic impact cardrooms have on California communities. The analysis reviewed jobs, wages, linked industries, state and local tax dollars, and total economic output.

In total, the California cardroom industry directly and indirectly creates about 32,425 living wage jobs with wages and benefits estimated at $1.64 billion. Tax revenue generated by California cardrooms totals roughly $500 million, with $398.8 in state taxes and $100.9 million in local jurisdiction gaming taxes.

"The data is clear – the cardroom industry is a vital part of local economies, creating irreplaceable jobs, needed state and local taxes to support local services, and, all totaled, a significant economic impact on California's economy," said John Dunham, President of John Dunham and Associates. 

The jobs, wages, and tax dollars provided by cardrooms serve as a vital economic stimulant in communities across California. The local cardrooms support communities, and in some cases, entire cities where over 50% of the local general fund budget is derived from city gaming taxes.

"The economic impact report illustrates what we know and experience every day – local cardrooms are essential to California communities across the state," said Kyle Kirkland, President of the California Gaming Association. "California cardrooms provide tens of thousands of steady, living wage jobs, providing an opportunity for working Californians to support themselves and their families.  Furthermore, cardrooms across California spark additional economic activity, revenue and jobs by their presence and provide valuable tax revenue to host communities.  In fact, some cardrooms generate over 50% of a city's general fund revenue, providing the majority of funds for emergency services, fire departments, parks and other critical city programs and services." 

The economic impact analysis defines the cardroom industry as cardrooms and related third parties, associated restaurants, security services, gift shops, bars and hotels. Its findings show that the cardroom industry touches all corners of California, directly employing almost 18,000 people, providing $728.8 million in wages and benefits and generating $3.0 billion in economic activity in the state.

KEY REGIONS IN CALIFORNIA

Region

Total Jobs*

Total Economic Impact*

L.A. County

13,463

$2.3 billion

San Diego County

1,936

$318.6 million

Bay Area

6,196

$1.1 billion

Sacramento Region

1,831

$313.3 million

Fresno County

764

$128.5 million

* includes direct, indirect and induced

Methodology
"This economic impact analysis was developed by JDA based on data collected from the California Gaming Association, Infogroup, the California Gambling Control Commission, and survey information provided by cardrooms and related third parties. The analysis utilizes the IMPLAN model in order to quantify the economic impact of the cardroom industry on the economy of California, as well as in state legislative districts, counties and cities. The model adopts an accounting framework through which the relationships between different inputs and outputs across industries and sectors are computed. This model can show the impact of a given economic decision – such as a factory opening or operating a sports facility – on a predefined, geographic region. It is based on the national income accounts generated by the US Department of Commerce, Bureau of Economic Analysis (BEA)."

To view regional data from the report, please visit: https://californiagamingassociation.org/cardroomimpact/.

To learn more about the California cardroom industry, please visit Calgaming.org.  

Contact: Becky Warren
Mobile: 916-607-0129
Email: [email protected]

SOURCE California Gaming Association

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