Arizona Revenue Sharing Agreement Pays State Big Dividends

Thread: Indian Gaming in the News

According to the January 31 edition of the Tucson Citizen, some intriguing numbers from Arizona: Tribal casinos have channeled $250 million into the state’s coffers since revenue sharing began in 2003 after Arizona voters approved Proposition 2002.

In the last quarter of 2006 alone, the state’s 15 gaming tribes wrote the Arizona Department of Gaming a $15 million check. Overall revenue sharing increased 14 percent over the equivalent period in 2005. If you were an investor in the stock market, you’d love to see this kind of return -- especially since you didn't put up any of the investment and you don't carry any of the risk.

You’d also love the diversification required by tribal-state compacts: a large proportion of the funds goes to state school districts, as well as problem-gambling programs, emergency services, wildlife and tourism funds.

For the state, the overall growth in Indian gaming revenue will continue to pay off, as the compacts’ revenue-sharing terms are laddered. One percent of the first $25 million in tribal gaming revenue goes to the state, but once the net hits $100 million, the state’s take increases to 8 percent.

Sounds like the state of Arizona has hit it big.