RubinBrown Gaming Stats 2011

Regional Indian Gaming Analysis

While the national tribal gaming industry remained flat year over year, the regional outlook produced mixed results. Four of the NIGC regions produced year over year increases, while three reported declines. Even though there are multiple factors impacting the regional performance of tribal gaming, a clear trend can be established based on the regional economic lifecycle of gaming. Regions that have permitted Class III gaming for more than a decade produced flat or declining revenues, while the regions that produced positive growth in fiscal year 2009 have only recently permitted Class III gaming. In fiscal year 2009, the Oklahoma City region led the nation in both percentage and total dollars growth, producing a 12.0%, or $162.0 million, increase over fiscal year 2008. Conversely, the Sacramento region experienced a 5.4%, or $393.6 million, decline in gaming revenues during fiscal year 2009. When expanding the regional comparison to a three year period, the trend of gaming revenues remains relatively consistent to those seen in fiscal year 2009. Over the

three year period, the Portland, St. Paul, Tulsa, Oklahoma City, and Washington D.C. regions all saw growth in revenues. The Tulsa and Oklahoma City regions (formally NIGC Region V) led the nation in revenue percentage growth since 2007. The continued growth amidst the economic recession is principally due to the continued expansion of tribal gaming since the November 2004 Oklahoma referendum. The referendum expanded Class III gaming beyond pari-mutuel racing to include electronic gaming devices and table games. Meanwhile, the Sacramento and Phoenix regions saw declines of approximately 10% since 2006. These regions have been established gaming markets for over a decade and were unable to offset the impact of the economic recession through growth and expansion. Furthermore, during the recent recession, these regions also saw some of the highest foreclosure rates and declines in property values.

2009 Gaming Revenues and Operations by NIGC Regions

Alaska

St. Paul $4.4B, 120 Ops

Portland $2.5B 49 Ops

Washington

Maine

Montana

Vermont

North Dakota

Minnesota

Oregon

New Hampshire

Idaho

Wisconsin

Massachusetts

South Dakota

New York

Michigan

Rhode Island

Wyoming

Connecticut

Iowa

Pennsylvania

New Jersey

Nebraska

Nevada

Ohio

Maryland Delaware

Indiana

Illinois

Utah

West Virginia

Colorado

California

Virginia

Kansas

Missouri

Kentucky

North Carolina

Tennessee

Oklahoma

Arizona

South Carolina

Arkansas

New Mexico

Mississippi

Georgia Alabama

Phoenix $2.6, 47 Ops

Texas

Louisiana

Florida

OK City $1.5B, 49 Ops

Tulsa $1.7B, 64 Ops

Map reprinted with permission of the National Indian Gaming Commission

35 | Raise Your Expectations