Bryant Economist's Study Shows IGT Generates $329 Million Annually to RI Economy

Bryant Economist's Study Shows IGT Generates $329 Million Annually to RI Economy

IGT is pushing back against casino operator Twin River -- and backing up claims about its economic importance in Rhode Island. IGT on Monday released an economic impact study it commissioned that was produced by Dr. Edinado Tebaldi, Professor of Economics at Bryant University. 

The study measured the impact of IGT’s 1,100 jobs on Rhode Island's economy.

The study conducted by the Bryant professor states that IGT "supports 2,445 jobs (direct, indirect and induced), produces $176.1 million in labor income and generates $329.5 million in value for Rhode Island’s economy annually. The economic activity supported by IGT also generates an additional $25.9 million in tax revenues for state and local governments.”

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In 2018, IGT made $543K in charitable contributions to organizations in Rhode Island.

"Because the proposed contract extends from 2023 to 2043 and IGT’s operations in Rhode Island may be larger than the minimum employment numbers determined by the contract, the economic impact estimates above represent a lower-bound scenario and may increase (in real terms, not due to inflation) due to the potential expansion of IGT’s operations in the state," said IGT in a release.

IGT Chair Bob Vincent appeared on GoLocal LIVE with News Editor Kate Nagle

“The basis of our economic development agreement with the state is to preserve and grow IGT’s high-paying, technology sector jobs and the impact those jobs have on the local economy. This analysis details the significant boost IGT’s operations give to Rhode Island’s economy,” said Robert Vincent, Chairman of IGT Global Solutions Corporation. “We utilize and support many local companies in Rhode Island. One of the fundamental points of the review of this agreement is to understand and appreciate the ripple effect IGT produces beyond the economic benefits of our operations.”

The report breaks down the direct, indirect and induced impacts of IGT in the following manner:

Direct Impact: IGT Direct Jobs: 1,100 Earnings: $111.3 million

Indirect Impact: Number of jobs and earnings created throughout the supply chain of IGT Indirect Jobs: 535 Indirect earnings: $25.2 million

Induced Impact: Number of jobs and earnings created by household spending of income earned either directly or indirectly from IGT Induced Jobs: 810 Induced earnings: $39.6 million

The report states that IGT’s economic activities have a robust multiplier effect throughout the state. 

- Every 100 jobs at IGT supports another 122 jobs in other industries in Rhode Island. This strong employment multiplier results from high-paying direct jobs at IGT. Every $100 in labor income paid to IGT workers creates an additional $58 in labor income throughout the state. Most of the direct and induced jobs supported by IGT are in real estate, legal services, restaurant and accommodations, accounting, retail, health care, education and marketing.

- IGT’s employees receive wages significantly higher than the average wage statewide. In June 2019, the average annual wage of IGT workers was $101,165, which is 109% higher than the average wage of workers in the private sector in Rhode Island ($48,370).

- IGT provided payroll, employment and income tax withholding data used as input in the analytical work. Dr. Edi Tebaldi, Professor of Economics at Bryant University, prepared this analysis at the request and for IGT.

ABOUT: Tebaldi is a professor of economics at Bryant University. He previously served as an Economist for the World Bank and as an Advisor for the New England Public Policy Center of the Federal Reserve Bank of Boston. He has extensive experience in econometric methods, policy analysis, and economic impact assessment. Dr. Tebaldi has published over thirty articles in refereed journals, and co-authored reports analyzing economic conditions across New England States. He received a Ph.D. in economics from the University of New Hampshire.