RubinBrown Gaming Stats 2013

TRIBAL GAMING ANALYSIS

2011 Revenue Analysis In 2011 tribal casinos generated $27.2 billion in gaming revenues, resulting in revenue growth of 2.6%. The 2011 growth rate was the largest since the economic recession began in 2007 and marked the first year since 2006 where all seven regions, as defined by the National Indian Gaming Commission (NIGC), experienced positive growth.

The tribal gaming industry consists of 240 sovereign tribal nations, operating 421 casinos, located in 28 states. Of the 28 states that have tribal gaming, only 5 have not entered into tribal- state gaming compacts; the five states are Alabama, Alaska, Mississippi, Nebraska, and Texas. Tribes with casinos located in these states operate exclusively under the Indian Gaming Regulatory Act (IGRA) of 1988 and are restricted to offering only Class II gaming. After the passage of IGRA in 1988, the tribal gaming industry experienced explosive double-digit annual growth rates up until 2007. Since then, tribal gaming has eased into a mature industry producing a five year compounded annual growth rate of 1.8% and a three year compounded annual growth rate of 0.6%. While the economic recession is a major contributor to the decline in revenue growth, the expansion of gaming facilities has also declined. Since 2007, there have been 30 new facilities, representing a compounded annual growth rate of 1.9%. However, in 2011 the number of tribal casinos declined by 1 operation from 422 operations in 2010.

Five Year History of Indian Gaming Revenues

$27.50B

11%

10.21%

$27.25B

10%

$27.15B

$27.00B

9%

$26.74B

$26.75B

8%

$26.50B

$26.48B

$26.50B

7%

5.71%

6%

$26.25B

$26.14B

5%

$26.00B

4%

$25.75B

3%

$25.50B

2.10%

2%

$25.25B

0.62%

$25.00B

1%

0.51%

$24.75B

0%

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

3 Year Compounded Annual Growth Rate

16 | 2013 Commercial & Tribal Gaming Stats