RubinBrown Gaming Stats 2011

Three Year Trend of Indian Gaming Revenues by Region

$9B

$8B

$6B $7B

$5B

$4B

$2B $3B

$1B

$0

Portland

Sacramento

Phoenix

St. Paul

Tulsa

Oklahoma City

Washington D.C.

FY 2007

FY 2008

FY 2009

Focus on Select States Comparing the five state region from Arizona to Kansas, there is a large disparity in tribal operations. Oklahoma leads the five state region with 105 casinos and thirty tribes. Alternatively, Colorado only has two tribes operating gaming facilities, with each operating one casino. Comparing state contribution rates, Colorado and Kansas tribes benefit from not paying state revenue contributions. However, the Colorado and Kansas tribes are challenged since they are not located near a major metropolitan area and the state permits commercial gaming operations. Meanwhile, the Arizona, New Mexico, and Oklahoma tribes enjoy the exclusive right to full service gaming (New Mexico and Oklahoma only permit commercial pari-mutuel gaming). However, in exchange for the right to offer Class III gaming, tribes in Arizona, New Mexico, and Oklahoma must pay state gaming revenue contributions.

Of the three states imposing state gaming revenue contributions, the state of Oklahoma benefitted the most in fiscal year 2010, collecting $118.2 million. The comparison in state gaming revenue contributions is consistent with the overall industry, as Oklahoma is estimated to produce nearly $2.9 billion in gaming revenue during fiscal year 2010, while Arizona and New Mexico generated $1.7 billion and $0.7 billion, respectively. Over a three year period, Oklahoma was the only state to recognize increasing state gaming revenue contributions. While the industry experienced growth, the overall percentage growth in gaming revenue contributions is primarily due to pre-existing facilities converting from Class II to Class III gaming. During the same period, New Mexico saw relatively flat tax contributions, which was consistent with the flat revenue growth. Arizona saw a 24.9% decline in state gaming revenue contributions since 2007 and the tribes experienced a combined 14.9% decline in gaming revenues.

Arizona

Colorado

Kansas

New Mexico

Oklahoma

Number of Tribes Operating Casinos

15 23

2 2

4

14 25

30

Number of Casinos

5* $0

105

Total FY 2010 Revenue Contributions $89,014,015

$0

$62,650,816 3% - 9.75% Graduated

$118,211,702 4% - 6% EGD Graduated 10% on Table Games

State Revenue Contributions

1% - 8% Graduated

Colorado does not require revenue contributions

Kansas does not require revenue contributions

*The number of Kansas casinos includes the 7th Street Casino in Kansas City, KS, a Class II facility operated by the Wyandotte Nation of Oklahoma. The Wyandotte Nation is excluded from the number of Kansas Tribes, since they are principally based in Oklahoma.

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