Is Industry Growth for Indian Gaming Taking a Downturn?
After a short holiday break, we better get right back to it!
After years and years of rapid growth that has outpaced the legalized gambling industry more generally, is Indian gaming revenue heading for a downturn?
According to Lyle Brennan, CEO of Lakes Entertainment, Inc., "Indian gaming is not a growth business." Lakes Entertainment hasn't signed a management deal with a tribal casino in three years.
Of course, IGRA's limitations on management contracts are meant to encourage tribes to operate their own casinos. Under IGRA, management contracts must be approved by the NIGC, and may run only for 5 years (or 7 years in extraordinary circumstances). Additionally, new tribal casinos may be more likely to require approval for gaming on newly acquired lands -- meaning that the opening of the casino is less of a sure thing.
Yet with the recent agreement negotiated between the Seminoles and Governor Crist of Florida to move forward with Class III gaming, there should be more growth in that state – assuming the political and legal wrangling over the compact eventually comes to a halt.
Read more here.