The Commercial Gaming Industry’s Commitment
to Environmental Sustainability
F
ew people would dispute the notion that a fundamental shift has taken place in recent decades with
respect to how businesses and other organizations interact with people and the world around them.
Many of these important changes fall under the rubric of corporate social responsibility (CSR), and today
most corporations have adopted CSR programs focusing on a wide variety of issues. Generally speaking,
CSR is a process for integrating into a company’s business practices responsibility for its actions and for
encouraging positive contributions to the environment, customers, employees, communities and other
stakeholders. In many instances, well-directed CSR initiatives have proven to not only be the right thing to
do but to improve a company’s bottom line.
The AGA “All-In” Campaign and
Environmental Sustainability
Members of the U.S. commercial gaming industry
have a tradition of commitment to the community,
whether by treating employees with dignity and
respect, promoting responsible gaming among
customers or helping make communities more
healthy and vibrant places in which to live and
work. In 2012, the American Gaming Association
(AGA) undertook a year-long “All-In” campaign to
highlight the significant CSR contributions of the
commercial gaming industry and its employees
across the country. The “All In” campaign
showcases companies’ CSR programs in four key
areas: philanthropy, environmental sustainability,
diversity and responsible gaming.
The fourth and final stage of this year’s campaign
centers on environmental sustainability and
is the focus of this paper. In order to quantify
the substantial commitments to environmental
sustainability and energy conservation made by the
commercial gaming industry, the AGA conducted
an in-depth survey among its members. While the
1
Members of the U.S. commercial gaming
industry have a tradition of commitment
to the community, whether by treating
employees with dignity and respect,
promoting responsible gaming
among customers or helping make
communities more healthy and vibrant
places in which to live and work.
findings from the survey should not be construed
as completely comprehensive of all industrywide
activity with respect to environmental sustainability
initiatives, they do provide a valuable depiction
of what is currently taking place at a significant
number of companies within the sector.1
Taken as a whole, the survey results are evidence
of an industry dedicated to making a difference
not only in the communities where it operates but
The data presented in this paper are derived from survey responses from nine commercial casino companies and industry suppliers. Companies
include Boyd Gaming Corporation; Caesar’s Entertainment; International Game Technology; Isle of Capri Casinos, Inc.; Las Vegas Sands Corp.;
MGM Resorts International; Penn National Gaming, Inc.; Pinnacle Entertainment, Inc.; and SHFL entertainment. Not all respondents answered
every question in the survey, and results reflect the most complete figures available. The AGA expects to conduct an annual survey with its
members focusing on environmental sustainability with the intention of increasing participation and improving data gathering.
The Commercial Gaming Industry’s Commitment to Environmental Sustainability
Energy and Water Conservation
across the country and around the world. Whether
through recycling and waste minimization or
energy and water conservation, the environmental
sustainability programs in the commercial gaming
industry are some of the most progressive and
forward-looking of any industry in any sector in the
U.S. today.
In addition to the industry’s efforts with respect to
recycling, it has made considerable investments,
both in terms of human resources and dollars, to
reduce energy and water use. These investments
appear to be paying off by reducing the
environmental footprint in places where casino
resorts, manufacturing facilities or other buildings
are located. For example, all of the companies
surveyed said they have installed, at a minimum,
50 percent energy efficient lighting in their
common areas for employees and in their
convention and meeting spaces. A vast majority
(86 percent) also use more energy efficient
lighting in their guestrooms and casino areas than
traditional incandescent lighting. In addition to
utilizing improved energy efficient technologies,
employees also are trained to be mindful of
energy conservation. Housekeeping staff at all
of the companies who participated in our survey
are trained to turn off room lights and set back
thermostats after servicing a guestroom.
Recycling and Waste Minimization
Because it is something most Americans do in the
course of their daily lives, one of the first things
they think of when asked about environmental
sustainability is recycling. As consumers, the vast
majority expect the companies to whom they
give their business to do the same with respect to
recycling materials and minimizing waste and other
bi-products of business operations.2 If results from
the member survey are any indication, commercial
gaming companies’ commitment to recycling and
waste minimization is impressive indeed. In fact,
nearly 68,000 tons of material was estimated to have
been recycled by survey respondents over the last 12
months. To put this in context, survey respondents
recycled the amount of material equivalent to
that recycled by nearly 100,000 average American
households over the same period of time.3
So what are the implications of these energy
efficiency initiatives when quantified on an
industrywide basis? According to estimates from
the commercial gaming companies we surveyed,
they have generated combined savings of roughly
191 million kilowatt hours over the past 12 months.
These savings equate to approximately the same
amount of electricity as was used by nearly 17,000
average American households in 2010.4
In addition to the sheer amount of materials
recycled, the extent and breadth of the materials
recycled also is significant. Companies were
specifically asked about 16 different materials and
whether or not their company has a program in
place to either recycle them or to minimize their
use. Notably, every single one of the materials
about which we inquired was recycled or had
its use reduced to some extent. Some materials
(e.g. corrugated cardboard) that are recycled by
100 percent of companies also are subject to use
reduction efforts or are reused. The chart on the
next page illustrates the full extent of the industry’s
recycling and use minimization programs.
Efforts to conserve water are just as prevalent, if
not more so, throughout the commercial gaming
industry as energy conservation initiatives. All of the
companies surveyed indicate that low flow faucets
are either “very prevalent” (56 percent) or “somewhat
prevalent” (44 percent) at their properties, and
more than three-quarters (76 percent) say the
same with respect to low-flow showerheads.
Automated faucets in public restrooms also are
2
According to an AGA 2012 public opinion poll of 800 American adults conducted by VP Communications and Peter D. Hart, three in four
Americans think it is either “very important” (43 percent) or “somewhat important (32 percent) for companies in the U.S. to focus on being active in
the community, treating employees well and protecting the environment.
3
Based on recent estimates, the average American household recycles 3.8 pounds of material per day or 1,387 pounds per year. By contrast, the
commercial gaming industry recycled 135,780,000 (67,890 tons) pounds of material over the past 12 months. This equates to 97,894 American
households. SOURCE: Environmental Protection Agency - http://www.epa.gov/osw/nonhaz/municipal/pubs/msw2009-fs.pdf
4
In 2010, the average American household used 11,496 kWh of electricity. SOURCE: http://www.eia.gov/tools/faqs/faq.cfm?id=97&t=3
2
The Commercial Gaming Industry’s Commitment to Environmental Sustainability
Percentage of Companies Who Recycle or Minimize the Use of Various Materials
22%
Cardboard
100%
22%
Toner Cartridges
100%
0%
Batteries
100%
33%
Paper
89%
11%
Fluorescent
Light Bulbs
89%
11%
Plastics
89%
33%
Scrap Metals
78%
11%
Waste Oils
78%
0%
Aluminum
78%
33%
Glass
67%
33%
Paper Products
56%
22%
Construction Waste
56%
22%
Plant Material
44%
22%
Food Waste
33%
11%
Soap
33%
56%
Polystyrene Foam
22%
0
10
20
30
40
50
Minimize Use or Reuse
3
60
70
Recycle
80
90
100
The Commercial Gaming Industry’s Commitment to Environmental Sustainability
extremely widespread (89 percent say they are “very
prevalent”) as are low flush tanks in guestroom
toilets (63 percent say they are either “very” or
“somewhat prevalent”).
In addition to integrating sustainability
into procurement operations, many
of the companies surveyed extend
Water conservation in the industry extends
outside the building as well. Every company who
participated in the study reported they use efficient
irrigation systems at their properties, and nearly
half (44 percent) make use of groundwater or
rainwater to supplement their irrigation needs.
The vast majority (78 percent) instruct groundskeeping staff to sweep rather than spray down
sidewalks and drives with water, and more than
half (56 percent) make use of artificial turf or other
landscaping that reduces or eliminates the need for
supplemental watering.
environmentally aware practices
into their construction and building
operations.
In all, the commercial gaming companies we
surveyed estimate they save more than 750 million
gallons of water per year due to conservation and
efficiency efforts. This savings is equivalent to the
total annual water usage of nearly 5,200 American
households.5
internationally recognized green building program.
There are only slightly more than 14,000 LEED
certified buildings around the world today,6
yet a majority (56 percent) of the companies in
our survey universe either have LEED certified
buildings in operation or are in the process of
submitting applications to gain certification.
Moreover, among those companies who currently
do not have any LEED properties, 80 percent
say they intend to pursue certification for future
construction projects.
Procurement and Environmentally
Sustainable Construction
Environmental Sustainability:
A Business Imperative
Among the companies who participated in our
survey, procurement practices are firmly integrated
into their broader environmental sustainability
programs. Every one of our responding companies
indicate they actively procure low Volatile Organic
Compound (VOC) paints, glues and carpets,
environmentally friendly cleaning products, and
Energy Star certified equipment. Moreover, an
overwhelming majority (89 percent) say they buy
environmentally friendly paper products and obtain
materials from local vendors when possible.
While the discussion of survey findings above
quantifies many of the positive environmental
sustainability achievements the commercial
gaming industry has been able to realize in recent
years, it does not explain the existing mindset
and attitudes of those who are at the forefront of
the industry’s efforts. Indeed, the attitudes and
opinions reflected by the companies responding
to the AGA survey suggest a widespread belief that
environmental sustainability initiatives are likely
to be an enduring component of overall corporate
strategy and culture for the foreseeable future.
There are economic as well as ethical imperatives
fueling these programs and that industry leaders
recognize and embrace this new norm. In addition to integrating sustainability into
procurement operations, many of the companies
surveyed extend environmentally aware practices
into their construction and building operations.
For example, the Leadership in Energy and
Environmental Design (LEED) program is an
As was referenced above, consumers today expect
more from the companies they patronize, and for
5
According to the Environmental Protection Agency, the average family of four uses about 400 gallons of water per day, equating to 146,000
gallons per year. Therefore, industry water savings of 753 million gallons is the equivalent of approximately 5,157 households.
SOURCE: http://www.epa.gov/WaterSense/pubs/indoor.html
6
More information on LEED can be found at http://new.usgbc.org/leed.
4
The Commercial Gaming Industry’s Commitment to Environmental Sustainability
environmental sustainability strategy (50 percent)
or plan to have one in the near future (25 percent).
Additionally, this commitment extends beyond
the board room, as a majority (56 percent) of
member companies make education and training
programs related to sustainability available to their
employees.
many, a company’s environmental track record can
be a significant factor in determining where those
consumers will spend their hard-earned money.
Particularly in the crowded entertainment and
hospitality sectors, in which there is a wealth of
companies competing for Americans’ discretionary
dollars, successful companies realize they have
to listen to their customers and be transparent
and genuine in their conduct. In this context, it is
perhaps not surprising that two-thirds (66 percent)
of our survey respondents think that pursuing
an environmental sustainability strategy is either
“definitely necessary” (22 percent) or “somewhat
necessary” (44 percent) to be competitive in today’s
business climate.
Conclusion
Companies in the commercial gaming industry
are not unlike businesses in other sectors of the
economy with respect to the fact that change and
evolution often need to be embraced in order to
succeed and thrive. The principles at the heart of
corporate social responsibility, and environmental
sustainability in particular, have inalterably
changed the way most companies interact with the
world around them. As demonstrated by many of
the findings discussed here, leading companies in
the commercial gaming industry have embraced
the values associated with being good corporate
citizens not only because it is the right thing to do
but because it is better for employees, customers
and the hundreds of communities around the U.S.
where its businesses are located.
In addition to improving companies’
competitiveness, the vast majority (83 percent) of
our member respondents say the implementation
of their environmental sustainability program has
actually lowered their company’s cost of doing
business, while a fractional remainder (17 percent)
thinks costs have stayed about the same over this
time. Reflective of this importance to their business
and commitment to the issue, three-quarters of the
companies responding to the survey say they either
have an identified lead executive heading their
5
This report is one component of the “All In” campaign, a year-long,
effort launched by the American Gaming Association (AGA). The
initiative showcases and quantifies the corporate social responsibility
(CSR) contributions of the commercial gaming industry. It focuses
on industry successes relating to four areas of CSR: philanthropy,
environmental sustainability, responsible gaming and diversity. The
“All In” campaign highlights how the industry as a whole — as well
as individual companies and employees — plays a significant role in
bettering communities and the environment.
The AGA is the national trade association for the commercial casino
industry. In addition to representing the interests of its members
on federal legislative and regulatory issues, the AGA serves as a
clearinghouse for information, develops educational and advocacy
programs and provides leadership on industry-related issues of
public concern.
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© 2012 American Gaming Association
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