Arizona Indian Gaming Revenue Down—What, Me Worry?

The Arizona Department of Gaming reports that revenue generated by tribal casinos is down, and that has state and local policymakers worried—about their own coffers.

Since 2003, Arizona tribes have distributed about $430 million to the state, which then channels the funds to various programs, like schools, hospitals, wildlife conservation, police protection, and other social services, including the mitigation of gambling addiction.

Indian gaming revenue fell 7.5 percent in the last quarter, the steepest drop in five years of revenue sharing. The economic downturn is being felt throughout the gaming industry—tribal, commercial, and charitable alike—and high gas and food prices and less disposable income for middle-class families hit “local” casinos particularly hard.

The state, therefore, may feel the pinch.

That’s a downside of tethering state public policy to revenue sharing—and why many states secretly (or not) hope that the Indian gaming industry stays on top of its game.

Read more in the Tucson Citizen.

NIGC Announces 2006 Indian Gaming Revenues

Tribal gaming continues to grow. According to the National Indian Gaming Commission (NIGC), Indian gaming was a $25.1 billion industry in 2006, up 11% from 2005. Six percent of the nearly 400 tribal gaming operations earn nearly half of the industry's revenue, each earning $250 million or more, while one in every five tribal gaming operations earns less than $3 million.

This is what we call the "spectrum of success" of tribal casinos: while highly profitable operations in California and Connecticut get attention in the press and serve as poster children for what some members of Congress have called an "out of control" industry, 20% of tribal gaming operations earn just enough to keep the casino doors open, continuing to provide jobs for tribal members and others and raising modest tribal government revenue.

For the NIGC press release, which includes a breakdown of tribal gaming revenue by region, click here.

Charitable and Civic Contributions in Minnesota

The Shakopee Mdewakanton Dakota Community reports it gave over $18 million to charitable and civic organizations in fiscal year 2006. The tribe made contributions to other tribes, education and youth programs, and various charities.

"As Dakota people, we have a long tradition of sharing with others so it is important for us to give back to the larger community. Before Indian gaming, our community had dirt roads and many of us lived in poverty and struggled to survive. . . . Now we are able to help others," said tribal Chairman Stanley R. Crooks.

Various forms of charitable and/or civic contributions are fairly common, if under the radar, for tribes across the U.S. The Indian Gaming Regulatory Act lists charitable contributions as one of several specified uses for gaming revenue by tribal governments. The National Indian Gaming Association reported in 2005 that tribes had donated approximately $100 million across the U.S. in the prior year.