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Study says Ohio casinos, racinos supported close to 14K jobs, economic impact of $2.2B in 2013
By ROBERT CONNELLY
AUSTINTOWN
A recent study reports the Ohio gaming industry, casinos and racinos, had a total economic impact of approximately $2.2 billion in 2013 and supported close to 14,000 jobs.
That study, performed by Oxford Economics for the American Gaming Association, was based on last year’s numbers, when three of the four casinos and only one of the seven racinos were fully operational for the full year in the Buckeye State. The study was done state by state and nationwide.
Those numbers are expected to go up after more facilities opened this year, including Austintown’s Hollywood Gaming at Mahoning Valley Race Course.
“Currently, we’ve created more than 400 jobs at the facility. I think that’s really a great start,” said Mike Galle, Hollywood Gaming general manager and vice president.
Hollywood Gaming still has positions open involving both gaming and racing. These positions can be found online at hollywoodmahoningvalley.com/careers.
That’s on top of the 1,530 employees who worked construction at Hollywood Gaming, according to Turner Construction — the head contractor on the $125 million project. Penn National Gaming Inc. paid $125 million in license and track relocation fees to bring the company’s total investment to $250 million.
State Rep. Ronald V. Gerberry of Austintown, D-59th, talked about the impact on the workforce at the facility in the beginning and now. He listed all the job positions, from workers with the horses, gaming floor to veterinarians and valets.
“All of those things are all contributors to economic growth in the area,” Gerberry said. “And just to watch the construction, it was incredible just the number of local trades people working out there. ... It’s had a tremendous impact so far and will continue.”
Statewide, the total labor income impact was $546.65 million, of that $291.6 million in direct labor income, and a total tax impact of $672.5 million, of which $356.5 million is in gaming taxes, the study said.
The study, released this month, used surveys from national casino operators; federal, state and private data sources for employment, revenue and expense numbers; and calculated direct, indirect and economic impacts statewide last year.
“Certainly, there was every expectation that these racinos were going to be job creators. If anyone’s had a chance to visit the track at Austintown, it’s a very labor-intensive job,” said Mark Munroe, a member of the state racing commission and chairman of the Mahoning County Republican Party.
He also noted how supportive Mahoning Valley residents have been of the track, from the video lottery terminal players to the patrons watching the live horse racing that began Nov. 24.
STUDY SPECIFICS
For the whole country, the study detailed an industry with an economic impact of $340 billion supporting 1.7 million jobs and bringing in $38 billion in tax revenues.
The analysis excluded parimutuel gaming, or wagering on horses; slots and video lottery terminals in noncasino locations; Native American casinos; card rooms and gaming manufacturer revenues and employment impacts.
Aran Ryan, executive director of Oxford Economics, based in the Philadelphia area, explained those exclusions were made so the study fell in line with parameters that the AGA uses for the “State of States” analysis that it releases yearly.
He said this was the first year it did the gaming study and plans to do it in coming years.
The figures Oxford produced for 2013 highlighted the jumps in economic impact that the Buckeye State has made since 2012, when some of the facilities were open after statewide Issue 3 passed in 2009. That made way for the casinos in Toledo, Columbus, Cincinnati and Cleveland.
Ryan specifically pointed to the statistics about ancillary spending, which is spending by patrons of the facilities at surrounding businesses who indicated a casino was the main purpose of their trip, and said “that was another piece previously underappreciated.”
He continued, “I think [the report] shows the full scope of the industry nationally.”
Ancillary spending across the Buckeye State was about $84 million. The economic impact of horse racing in the Valley could be $7.1 million, counting costs of horse feeding, blacksmiths, veterinarians and other needs, officials have estimated.
Galle said Hollywood Gaming continues to build partnerships in the community after opening the gaming floor to Valley residents Sept. 17. That includes a listing of area hotels that are partners on its website. Those hotels in Austintown are: Best Western Meander Inn, Candlewood Suites, Comfort Inn, The Fairfield Inn & Suites, Hampton Inn, Holiday Inn Express & Suites and Sleep Inn. It also partners with the Boardman Holiday Inn and the Niles Residence Inn Marriott.
“We had a lot of rooms that were booked from our property to local hotels here in Austintown, and we’re definitely looking to expand those opportunities,” Galle said.