US Tribal Gaming Celebrates New Revenue Record

Article by : Helen Dec 28, 2020

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While the entire US is suffering from the pandemic surge, and the US gambling market is going through tough times, the US tribal casino operators happily announce a new gambling revenue record set in 2019. Almost every tribal region has reported annual revenue growth, which is confirmed by the figures reported by the National Indian Gaming Commission (NIGC) this week.

According to the NIGC’s report, 245 tribal gambling casino operators reported a 2.5% gambling revenue growth to US$34.6 billion, which is almost 1 billion more than the results of the previous year. The number of tribal gambling properties was also increased in 2019 to 522, compared to 501 venues opened at the end of 2018.

The Sacramento region, where the biggest part of all tribal-controlled casinos is located (76), became the absolute winner in the gambling revenue race by reporting a US$9.7 billion revenue, which is 4.3% up compared to the previous year. Despite being the only region that reported a gambling revenue drop in 2019, Washington DC managed to hold its runner-up title, with 42 local tribal gambling venues reporting a 2% drop to US$7.4 billion. In 2018, Rapid City was the only region to show negative earnings, but it managed to get out in front in 2019, with the total revenue of its 42 casinos increased by slightly over 2% to US$376.5 million.

The biggest revenue gain was recorded in Oklahoma City, where 73 tribal gambling venues managed to increase their revenue by 7.7% compared to the same period last year, with the revenue totaling US$2.67 billion. Even the recent war with the local governor didn’t stop Oklahoma tribal casinos from showing great results. The point is that Governor Kevin Stitt was trying to gain more revenue by concluding the agreement on new gaming compacts with the Comanche Nation and the Otoe-Missouria tribes. The compacts were meant to be in place for 15 years and authorize the two tribes to launch new gambling properties in Cleveland, Grady, and Love counties. However, other tribes were not satisfied with the fact that their previous compacts were not renewed automatically for 15 years as well, so they sued Stitt and prevailed in their legal battle in federal court.

The growth reflected in the 2019 gaming revenue demonstrates the strength of tribal economies in recent years. The Indian gaming industry is a vital component of many tribal economies across the country.

He is happy that 2019 marked the highest revenue report in the history of the Indian gambling industry.

At the same time, Simermeyer cautioned that it is extremely important to take into account the impact of the coronavirus pandemic on the tribal gaming results in 2020. The pandemic forced many tribal-controlled gambling properties to close their doors for a while. Some of them still remain closed, and some of them are operating at a limited capacity. Chairman has also pointed out that every tribal casino is taking all the required preventative measures to ensure a safe tribal gambling environment. Vice-Chair Isom-Clause added: “Future reports will reflect the effects of the pandemic on the industry, as well as how it continues to adapt to changing circumstances.”