Landmark Economic Impact Study Reveals Gaming Industry in Canada Worth $15.3 billion in Direct Spending Alone



    Larger than magazine, book, spectator sport, movie theatre and performing
    arts sectors combined

    TORONTO, April 26 /CNW/ - The most comprehensive study ever conducted on
the economic impact of gaming in Canada reveals that the gaming industry is
responsible for more than $15 billion in direct revenue, more than $2 billion
in direct salaried employment for Canadians working in the industry, and
$10 billion in current capital investment.
    "This is by far the most detailed research produced to date on the
economic significance of the Canadian gaming industry," said Bill Rutsey,
President of the Canadian Gaming Association (CGA), who commissioned the
study. "It provides us with a rigorous basis of information to better
understand our industry's pivotal role in the national economy."
    The first phase of the study was released today at the CGA's Canadian
Gaming Summit, a three-day gathering of more than 1,200 industry
representatives in Toronto. The study covers the economic impact of gaming,
broken down by type and by region, with a focus on overall revenues, direct
employment, revenues generated for all three levels of government, and other
ancillary benefits. The study was conducted by HLT Advisory Inc., a leading
provider of consulting and support services to the Canadian and international
hospitality, leisure and tourism industries.
    Subsequent phases of the study will include an assessment of both the
indirect and induced impacts of the gaming industry in Canada to provide an
even greater level of detail concerning the overall impact, as well as further
regional breakdowns on the impacts of specific gaming activities. Case studies
will also be developed to illustrate localized impacts in specific regions.
    "This was a challenging and groundbreaking study in terms of geography,
the type of information gathered and the level of detail covered," said Robert
Scarpelli, Managing Director of HLT. "In many cases, we validated some of the
conventional wisdom regarding the importance of gaming. But in other ways, the
preliminary findings were of a greater magnitude than even we had expected."

    
    Specific findings include:
    -   The gaming industry contributes $15.3 billion to the economy
        directly, with most of this revenue ($8.6 billion or 57 per cent)
        going to government programs and services, as well as to charities.
    -   Gaming sizably exceeds other segments of the entertainment industry
        in terms of the direct impact on the economy. In fact, gaming
        revenues approximate those of the spectator sports, television,
        movies, books/magazines, and performing arts sectors combined.
    -   The industry generates approximately $700 million in non-gaming
        revenue, such as food, beverage and entertainment.
    -   From the perspective of the hospitality sector, gaming is just behind
        full-service restaurants (at $17.2 billion) and on par with limited-
        service restaurants (at $15.4 billion) in terms of economic
        contribution. Gaming also places ahead of accommodation services (at
        $14.3 billion) and air travel (at $11.9 billion) with Canada's two
        major airlines.
    -   The industry's investment in current capital construction is
        approaching $10 billion, with the largest portion of that investment
        (49 per cent) occurring in Ontario.
    

    "Gaming has grown significantly over the past decade to become an
essential pillar of the entertainment industry in Canada," said Mr. Rutsey.
"It is rewarding to be able to reliably demonstrate how the majority of
spending in the industry goes directly back to Canadians, in the form of
paycheques, construction in communities, and in revenues for the programs and
services and charities that we value."

    The Canadian Gaming Association represents the gaming industry's leading
operators, manufacturers, suppliers and other stakeholders nation-wide.
www.canadiangaming.ca
    Complete information on the 2007 Canadian Gaming Summit can be found at
www.canadiangamingsummit.com.





For further information:

For further information: Media contact: Paul Burns, Vice President,
Public Affairs, Canadian Gaming Association, 44 Victoria Street, Suite 300,
Toronto, ON, M5C 1Y2, Direct: (416) 304-6870, Cell: (416) 579-3922,
pburns@canadiangaming.ca; Cathy Kurzbock, Hill & Knowlton, Direct: (416)
413-1218, Ext. 4550, cathy.kurzbock@hillandknowlton.ca

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