Indian Gaming Industry Report

Frequently cited by the press, the Indian Gaming Industry Report is a trusted resource for government and regulatory agencies, investors, and the industry itself, as well as associated industries. The report is the most comprehensive, up-to-date study of Indian gaming available, providing a wide array of nationwide and state-by-state data and analyses.  One of the most sought after sets of data is gaming revenue by state.

The report also provides other various data and analyses:

• Counts and lists of gaming tribes and Indian gaming facilities
• Counts of gaming machines and table games
• Non-gaming revenue
• Class II vs. Class III breakouts and comparisons
• Comparisons of Indian gaming across states and to other gaming segments, including commercial casinos, racinos, and card rooms
• Tribal revenue sharing with state and local governments
• Lists of pending and approved applications for land into trust for gaming purposes, and analyses thereof
• State-by-state market summaries
• Trend analyses
• Reasons for the slowdown/growth of Indian gaming
• Economic and fiscal contribution of Indian gaming to the U.S. economy
• Qualitative outlook for Indian gaming

The Indian Gaming Industry Report is authored by Principal Economist, Alan Meister. Dr. Meister has conducted extensive research and analysis of the gaming industry, particularly Indian gaming, for more than a decade. His research and analyses have been relied on in matters before the United States Supreme Court and the World Trade Organization. He has also been commissioned by the National Indian Gaming Commission to independently analyze the economic effects of proposed changes in Indian gaming regulations.

The 2013 report is the eleventh and latest edition.  To order a copy, please visit www.indiangamingreport.com. Click below to read a summary of the main findings of the last four editions of the report (Data in the summaries of older editions have been updated with data from the latest edition).

2013 Edition: Indian Gaming Continues Its Recovery

In the 2013 edition, Dr. Alan Meister finds that despite a sluggish economy in 2011, Indian gaming sustained modest growth to bring it above its pre-recession gaming revenue level. On a nationwide basis, gaming revenue grew 3.4 percent to approximately $27.4 billion. This was the second straight year of growth following Indian gaming’s first and only decline in 2009 as a result of the Great Recession. Indian gaming grew at twice the rate of the commercial casino segment, which was 1.7 percent in 2011. However, the racino and cardroom segments outgrew Indian gaming with 8.1 percent and 3.7 percent growth, respectively. Indian gaming did not grow everywhere or grow uniformly across the country. Approximately 65 percent of Indian gaming facilities experienced growth in gaming revenue in 2011, while about 35 percent experienced declines. At the state level, gaming revenue growth varied from +26 percent in Alabama to -3 percent in New York, with 75 percent of Indian gaming states experiencing growth over 2010. Gaming revenue was also very concentrated. The top 31 percent of facilities accounted for 85 percent of gaming revenue, while the bottom 33 percent accounted for only 2 percent. Meanwhile, the top 2 states generated approximately 38 percent of gaming revenue at Indian gaming facilities; the top 5 states generated about 61 percent; and the top 10 states generated 86 percent. In addition to the nationwide growth of gaming revenue at Indian gaming facilities, non-gaming revenue grew nearly 5 percent to approximately $3.3 billion in 2011 after having declined the two previous years. Overall, Indian gaming made a significant contribution to the U.S. economy in 2011. The 242 Native American tribes operating 460 gaming facilities in 28 states directly supported about 339,000 jobs and $12.3 billion in wages, and made over $1.4 billion in payments to non-tribal governments.

2012 Edition:  Indian Gaming Recovering from the Downturn in the Economy

In the 2012 Edition, Dr. Alan Meister finds that in the wake of the Great Recession Indian gaming showed signs of recovery in calendar year 2010. On a nationwide basis, gaming revenue at Indian gaming facilities grew 1.3 percent to $26.7 billion. This growth overcame Indian gaming’s first-ever decline of 1 percent in 2009 and marks a turnaround after four straight years of slower growth. Also on a nationwide basis, Indian gaming outperformed the commercial casinos segment and the card room segment, which declined 0.1 percent and 2 percent, respectively, in 2010. However, the racinos segment outgrew Indian gaming with 5 percent growth. While Indian gaming grew slightly on a nationwide basis in 2010, its performance varied widely across facilities, tribes, and states. At the state level, gaming revenue growth varied from 61 percent in Alabama to -7 in North Carolina. Furthermore, it declined in 9 of 28 states, and in 51 percent of all Indian gaming facilities. Gaming revenue was also very concentrated. The top 30 percent of Indian gaming facilities generated 85 percent of gaming revenue, while the bottom 35 percent accounted for only 2 percent of gaming revenue.

2011 Edition:  Ailing Economy Takes Toll on Indian Gaming

In the 2011 Edition, Dr. Alan Meister found that the ailing economy took its toll on Indian gaming in 2009. In fact, on a nationwide basis, gaming revenue at Indian gaming facilities declined for the first time in the recorded history of Indian gaming. According to the report, gaming revenue at Indian gaming facilities nationwide decreased 1 percent, from $26.6 billion in calendar year 2008 to $26.4 billion in calendar year 2009. This decline was slight considering the 8 percent decline in the commercial casino segment of the gaming industry, but continued the slowdown in Indian gaming of the past several years. Performance, however, varied widely across states, tribes, and gaming facilities. Although the majority of Indian gaming facilities suffered a decline in 2009, many grew. The states with the highest amounts of gaming revenue from Indian gaming were California, Oklahoma, Connecticut, Florida, and Washington, while Indian gaming grew fastest in Alabama, Alaska, Washington, Nebraska, and Florida.

2009-2010 Edition:  Recession and Public Policies Curb Industry Growth

In the 2009-2010 Edition, Dr. Alan Meister attributed the slower growth of Indian gaming in 2008 to the recession. However, the slowing growth pattern of previous years was the result of public policies that restricted the supply of Indian gaming.  According to the report, revenue from Indian gaming facilities was approximately $26.6 billion in 2008 and grew 1.2 percent, the slowest growth in its reported history—though still respectable given the general economic downturn and the decline in the commercial gaming segment of the industry. Nearly half the states with Indian gaming experienced declines in gaming revenue, while the other half experienced growth. Growth was greatest in Alabama, Alaska, Wyoming, Nebraska, and Oklahoma.  Oklahoma became the second largest Indian gaming state after California. Together, California and Oklahoma accounted for approximately 40 percent of all gaming revenue at Indian gaming facilities nationwide in 2008.

For more information on the report and on Nathan Associates’ Gaming Industry and Indian Gaming practices, please contact:

Alan P. Meister, Ph.D.
Nathan Associates Inc.
email
T: 949-474-4955