RubinBrown Gaming Stats 2019

TRIBAL GAMING

2018 GAMING REVENUES BY REGION ACCORDING TO RUBINBROWN'S ESTIMATE

In 2018, the tribal gaming industry segment generated an estimated $33.8 billion, growing at a rate of 4.3%. The continued growth marks the sixth consecutive year tribal casinos have grown revenues at a rate in excess of their commercial casino counterparts. The growth in tribal gaming experienced in 2018 continues to be primarily attributed to an overall improvement in the economic conditions throughout the United States and the continued expansion of resort amenities and services offered at existing casinos. There are limited opportunities for new market expansion efforts near large population centers, which makes the 2018 growth notable, as the tribal gaming revenue growth is considered organic growth. The tribal gaming industry segment encompasses more than 240 tribal nations and 490 casinos. The development of these casinos originated from the passage of the Indian Gaming Regulatory Act (IGRA) of 1988. Since its inception, the tribal gaming industry has led to the creation of more than 200,000 jobs on tribal lands and generated billions of dollars for neighboring state governments, which benefit from the revenue sharing agreements outlined in various tribal-state gaming compacts. Between 1988 and 2006, the industry consistently generated double-digit growth rates. Since 2006, the tribal gaming industry segment has reached a point of maturity, where there have been limited opportunities to expand into new markets. During the past 10 years, the tribal gaming industry segment has seen revenue growth at an annualized rate of 2.6% while welcoming more than 110 new casinos, or an increase of 28.4% in the number of casinos.

$3.58B 10.6%

$5.07B 15.0%

$9.56B 28.3%

$7.54B 22.3%

$3.16B 9.3%

$2.48B 7.3% $2.41B 7.1%

Portland

Sacramento

Phoenix

Tulsa St. Paul & Rapid City

Oklahoma City

Washington D. C.

During 2018, the potential for legalized sports wagering also became a primary focus for tribal gaming. With the U.S. Supreme Court overturning PASPA, tribal governments began to look at their own circumstances to determine the legality of sports wagering. The legality of sports wagering for commercial casinos is relatively straight forward, as the casinos are dependent upon state laws and gaming regulations. For tribal governments, the legality of sports wagering is more complex given tribal nations have sovereignty and are not subject to state laws or regulations. However, the passage of IGRA required tribes to enter into tribal-state gaming compacts prior to offering Class III gaming (which includes sports wagering). As a general rule, the legality of sports wagering at tribal casinos now remains contingent upon the language of their tribal-state gaming compacts, with some compacts explicitly defining the types of gaming that can be offered and others being more generic, leaving the compact open for interpretation. In the event tribal-state gaming compacts prohibit sports wagering, tribal nations will be required to renegotiate the terms of the compact making the prospects of legalized sports wagering more complex, as the new compacts would require approval from both the state and federal governments. As of December 2018, two tribal nations had begun offering sports wagering. The two nations include the Santa Ana Pueblo near Albuquerque, NM, which operates the Santa Ana Casino, and the Mississippi Band of Choctaw Indians northeast of Jackson, MS, which owns and operates the Pearl River Resort. Looking forward, long-term tribal casino revenue growth is expected to continue. The revenue growth will come from the development of resort-destination casinos, acquisition of new lands and the development of commercial gaming entities.

Tribal Gaming

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† see statistical note on page 25