December 22, 2024

Study shows economic benefit of casino gaming in Kentucky

Last updated: 1/17/12 1:58 PM


by Brisnet.com

The Kentucky Chamber of Commerce on Tuesday released preliminary findings from a
statewide study commissioned by a partnership of Kentucky horse industry
interests. The study, conducted by the independent research firm Spectrum Gaming
Group, shows the economic impact of adding casino-style gaming at eight Kentucky
racetrack locations would produce $1.7 billion dollars of economic impact during
the first full year of casino operations, resulting in a net gain of
approximately 11,000 full-time jobs, paying $290 million in wages annually.

The Kentucky Gaming Market Analysis and Impacts Report was completed in December
2011 by Spectrum Gaming Group, based in Linwood, New Jersey, and projects the gross
gaming revenue generated by casino gaming at eight racetrack locations across
the Commonwealth, as well as casino gaming impacts on Kentucky’s economy,
employment and its signature horse-racing industry. Key findings include the
following statewide outcomes during the first full year of casino operations:


  • 10,953 full-time jobs directly tied to casino operations with a payroll of
    $289.3 million;
  • 4,297 full-time construction jobs over an estimated 30-month build-out period
    with a payroll of $338 million;
  • $1.14 billion in gross gaming revenue;
  • $464.7 million in gaming tax revenue and $541.3 million in total Kentucky tax
    receipts (totals include funds for horse-racing industry programs);
  • $266 million in one-time license fees ($20,000 per gaming position);
  • $164.6 in funds for horse-racing industry programs with
    $152.5 million for Thoroughbred and Standardbred purses;
    $10.5 million for the Equine Breed Authority; and $1.6 million for Quarter Horse
    purses;

  • When taking the above estimates into consideration, the study finds that eight
    prospective racetrack casinos would generate first-year gross state product — or
    total economic impact — of $1.7 billion.

    “Expanded gaming is not only about protecting Kentucky’s signature horse
    industry, it is a way to generate substantial investment and job growth in the
    Commonwealth,” Dave Adkisson, president and CEO of the Kentucky Chamber, said.
    “This study shows we have an opportunity to not only stem job losses, but to
    expand and grow them within our borders by recapturing economic activity from
    other states. Expanded gaming is an appropriate response to other states’
    assault on our signature industry.”

    “This study reinforces that it is time to keep Kentuckians’ money in the
    Commonwealth and create new revenue streams that benefit our state and its
    citizens,” Vince Gabbert, vice president and COO of Keeneland Association, said. “More
    than 80 percent of Kentuckians polled have asked for the right to vote on this
    issue, and we agree their voices should be heard.”

    “Through this comprehensive market analysis, we can see the overwhelmingly
    positive impact casinos at racetracks will have on Kentucky’s economy and
    employment picture, in addition to helping preserve and grow Kentucky’s
    signature horse-racing industry,” Brett Hale, senior vice president of corporate
    and government relations for Churchill Downs Incorporated, noted. “The forecast
    provides compelling data, and we look forward to sharing this information with
    our leaders in Frankfort as we continue our efforts to move our Commonwealth
    forward.”