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US – AGEM study shows gaming manufacturers generate impact of $47.5bn

By - 11 May 2017

The global gaming supplier industry generated a total economic impact of $47.5bn, supported more than 212,000 employees, including 55,000 direct employees, and paid a total of $14.2bn in wages and salaries during 2016, according to a comprehensive report released today by the Association of Gaming Equipment Manufacturers (AGEM).

The report titled “Industry Impact Analysis: Global Gaming Supplier 2017” was the result of an independent study commissioned by AGEM and conducted by the respected Las Vegas-based research firm Applied Analysis. The report is the most comprehensive review to date of the global gaming supplier industry that analyzes the size and scope of this technology-driven sector, specifically identifying AGEM members’ global reach spanning every regulated gaming market in the world.

With 151 member companies based in 23 countries, AGEM is anchored by the world’s largest slot machine companies and AGEM Gold Members AGS, Ainsworth Game Technology, Aristocrat Technologies, Everi, International Game Technology (IGT), Konami Gaming, Merkur Gaming, Novomatic Group, Scientific Games and Sega Sammy Creation. The AGEM membership also includes companies active in lotteries, systems, table games, online / interactive, mobile apps, game development, machine components and support products and services for the gaming industry.

Including direct ($17.9 bn), indirect ($14.9bn) and induced ($14.7bn) impacts, the global gaming supplier segment generated a total of $47.5bn of economic output (revenue) in 2016.
Including direct ($4.9bn), indirect ($4.7bn) and induced ($4.6bn) impacts, the global gaming supplier segment supports a total of approximately $14.2bn in annual wages and salaries to 55,145 direct, 68,128 indirect and 88,833 induced employees for a total, with the multiplier effect, of 212,106 employees.
The average direct wage per employee in the industry reached approximately $89,400 in 2016, reflecting a significant premium to the current U.S. average annual wage of $49,630, as listed by the Bureau of Labor Statistics.

The industry has an especially strong impact in Nevada and overall employs a broad range of workers, including high-end technical professionals and engineers responsible for hundreds of millions of dollars in research and development expenditures annually.

“A lot has changed in our sector during the past several years, but what hasn’t changed is the impressive output of the global gaming suppliers and technology providers,” said Marcus Prater, Executive Director of AGEM. “While there have been a variety of consolidation events at the very top 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.”

Among AGEM Voting Member companies surveyed for the report, none of the respondents expect to decrease their staffing levels during the next 12 months, with almost three-fifths (57 per cent) expecting to increase staffing. More than two-thirds (68 percent) expect the economic conditions to improve during the next 12 months. Respondents also answered positively about employee-sponsored health care and retirement programs, purchasing from local vendors and increasing employee numbers and salaries.

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