Indian Gaming Industry Report

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 gaming 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.  

The report provides various data and analyses:

  • Gaming revenue, by state
  • Non-gaming revenue, by state
  • Counts and lists of gaming tribes and Indian gaming facilities, by state
  • Counts of gaming machines and table games, by state
  • Class II vs. Class III comparisons
  • Comparisons of Indian gaming across states and to other gaming segments, including commercial casinos, racinos, and card rooms
  • Tribal revenue sharing with federal, state, and local governments
  • Pending and approved land-in-trust applications for gaming
  • Historical review
  • State-by-state market summaries
  • Trend analyses
  • Assessments of performance of Indian gaming
  • Economic and fiscal contribution of Indian gaming to the U.S. economy
  • Future outlook for Indian gaming, including an assessment of potential growth and challenges

The Indian Gaming Industry Report is authored by Principal Economist, Dr. Alan Meister and published by Casino City Press. Dr. Meister has conducted extensive research and analysis of the gaming industry, particularly Indian gaming, for over 16 years. His research and analyses have been relied on in matters before the Bureau of Indian Affairs, United States Supreme Court, and the World Trade Organization. He was also previously commissioned by the National Indian Gaming Commission to independently analyze the economic effects of proposed changes in Indian gaming regulations. Dr. Meister’s work in the Indian Gaming Industry Report has also been cited by the U.S. Supreme Court.

The 2016 report is the fourteenth and latest edition. To order a copy, please visit www.indiangamingreport.com. Click below to read a summary of the main findings of the current and last six editions of the report (Summaries of older editions include the most up-to-date data available.).

2016 Edition: Growth of Indian Gaming Parallels U.S. and State Economies

Cover of 2016 Indian Gaming Industry ReportOn a nationwide basis, calendar year 2014 growth of Indian gaming paralleled that of U.S. and state economies.Gross domestic product and per capita disposable personal income at the national level and in the vast majority of states grew at faster rates in 2014 versus 2013. Indian gaming’s 2% growth in 2014 was more than three times that in 2013.
While the growth of Indian gaming was still below its pre-recession growth rate, Indian gaming experienced its fifth consecutive year of growth in 2014, the most recent year for which data are available. In addition, gaming revenue reached an all-time high of $28.9 billion. Non-gaming revenue grew 5% in 2014, more than double the growth rate of gaming revenue. This faster growth of non-gaming revenue was an ongoing trend as many Indian gaming facilities continued to develop non-gaming amenities to complement their gaming offerings and expand their operations.

In the aggregate, there were 243 Native American tribes operating 489 gaming facilities in 28 states. While Indian gaming grew on a nationwide basis in 2014, there was significant variation in the performance of Indian gaming across states. The growth of gaming revenue ranged from +13% in Wyoming to -9% in Idaho. Of the 28 states with Indian gaming, 20 experienced gaming revenue growth. After Wyoming, Indian gaming grew fastest in Alabama and South Dakota, with all three states experiencing double-digit growth. On the other hand, Indian gaming in 8 states experienced a decline in gaming revenue. The largest declines after Idaho were in Connecticut and New York in the face of increasing competition in the northeast region.

Gaming revenue was highly concentrated among a small number of states. Indian gaming in the top 10 states generated 85% of the $28.9 billion in total nationwide gaming revenue, with Indian gaming in California alone accounting for approximately 25%. Gaming revenue was also highly concentrated among a small number of Indian gaming facilities. The top 6% of facilities accounted for approximately 40% of nationwide gaming revenue and the top 28% accounted for approximately 84%.

In comparison, other segments of the gaming industry experienced mixed results in 2014 amidst Indian gaming’s growth. The racetrack casino (“racino”) segment outpaced Indian gaming, with growth of nearly 4%. Meanwhile, the commercial casino and card room segments each declined. The traditional commercial casino segment declined approximately 2% and the card room sector declined about 6%. The drop in gaming revenue for the commercial casino segment coupled with the growth of Indian gaming brought the two segments to almost equal shares of the casino gaming sector (44.5% for the commercial casino segment and 43.5% for Indian gaming).

Indian gaming made significant economic impacts in 2014. First and foremost, Indian gaming continued to help promote tribal economic development, self-sufficiency, and strong governments. Gaming profit is used by tribes to fund government operations, develop infrastructure, support social and economic programs and services, and finance other business ventures. Indian gaming also continued to have a significant economic impact on surrounding communities and the general economy. In 2014, the impact on the U.S. economy totaled approximately $95 billion in output; 738,000 jobs; $33 billion in wages; $1.7 billion in direct revenue sharing payments by tribes to federal, state, and local governments; and $8 billion in federal, state, and local taxes on secondary economic activity stimulated by Indian gaming.

2015 Edition: Indian Gaming Holds its Own Amidst Slowdown of the Economy

Indian Gaming Industry Report, 2015In the 2015 edition, Dr. Alan Meister found that despite the struggling economy, Indian gaming on a nationwide basis experienced its fourth consecutive year of growth in calendar year 2013. Gaming revenue grew approximately 0.6%, reaching an all-time high of $28.3 billion. In the aggregate, there were 245 Native American tribes operating 484 gaming facilities in 28 states. Indian gaming growth in 2013 was slower paced than in previous years, and well below its pre-recession growth rate. The biggest culprit was the slowdown of the U.S. economy. Gross domestic product and per capita disposable personal income at the national level and in the vast majority of states grew at slower rates in 2013 versus 2012. Market maturation and increased competition in various parts of the country, particularly the Northeast and some of the Midwest, also slowed the growth of Indian gaming. In fact, Indian gaming in 19 of the 28 states experienced slower growth in 2013. In the face of these same economic conditions, other segments of the gaming industry also experienced slower gaming revenue growth in 2013. The commercial casino segment grew 1.5%, while the card room segment was flat and the racino segment declined -0.2%. The drop in gaming revenue in the racino segment was its first ever decline. While there was a slowdown on a nationwide basis in 2013, Indian gaming in many parts of the country enjoyed healthy growth. Of the 28 states with Indian gaming, 16 experienced gaming revenue growth. Indian gaming in Texas, Nebraska, North Dakota, North Carolina, and Montana all experienced double-digit growth on a statewide basis. On the other hand, Indian gaming in 12 states experienced a decline in gaming revenue. In all, the growth of gaming revenue ranged from +39% in Texas to -9% in Idaho. Gaming revenue was highly concentrated among a small number of states. Indian gaming in the top 10 states generated 85% of the $28.3 billion in total nationwide gaming revenue, with Indian gaming in California alone accounting for approximately 25%. Gaming revenue was also highly concentrated among a small number of Indian gaming facilities. The top 6% of facilities accounted for approximately 41% of nationwide gaming revenue and the top 29% accounted for approximately 84%. In contrast, the bottom 35% of facilities accounted for only 2% of nationwide revenue for Indian gaming.

2014 Edition: Growth in Commercial Casinos and Racinos Outpaces Indian Gaming

2014 Indian gaming industry reportIn the 2014 edition, Dr. Alan Meister found that Indian gaming experienced modest growth in 2012. On a nationwide basis, gaming revenue grew approximately 2% to reach $28.1 billion, an all-time high. This was the third straight year of growth. However, in a slow-growth economy, the pace was slower than 2011 and prior to the Great Recession. Furthermore, growth of Indian gaming was markedly slower than that of other casino gaming segments. Nationwide, the commercial casino segment grew approximately 4% and the racetrack casino (racino) segment grew approximately 8%. The performance of Indian gaming varied widely across facilities, tribes, and states. Approximately 66% of Indian gaming facilities experienced gaming revenue growth in 2012, while about 34% experienced declines. Of the 28 states with Indian gaming, 22 experienced gaming revenue growth over 2012, ranging from +20% in Alaska to -8% in Connecticut. Gaming revenue remained concentrated among a relatively small number of gaming facilities and states. The top 31% of facilities accounted for 85% of gaming revenue, while the bottom 33% accounted for only 2%. Furthermore, the top 10 states generated 85% of gaming revenue at Indian gaming facilities.

2013 Edition: Indian Gaming Continues Its Recovery

Indian Gaming Industry Report 2013In the 2013 edition, Dr. Alan Meisterfound 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% to approximately $27.6 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 nearly twice the rate of the commercial casino segment, which was nearly 2% in 2011. However, the racino and cardroom segments outgrew Indian gaming with approximately 8% and 4% growth, respectively. Indian gaming did not grow everywhere or grow uniformly across the country. Approximately 65% of Indian gaming facilities experienced growth in gaming revenue in 2011, while about 35% experienced declines. At the state level, gaming revenue growth varied from +26% in Alabama to -3% in New York, with 79% of Indian gaming states experiencing growth over 2010. Gaming revenue was also very concentrated. The top 31% of facilities accounted for 85% of gaming revenue, while the bottom 33% accounted for only about 2%. Meanwhile, the top 2 states generated approximately 38% of gaming revenue at Indian gaming facilities; the top 5 states generated about 61%; and the top 10 states generated 86%. In addition to the nationwide growth of gaming revenue at Indian gaming facilities, non-gaming revenue grew nearly 5% to approximately $3.3 billion in 2011 after having declined the two previous years.

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

Indian Gaming Industry Report 2012In the 2012 Edition, Dr. Alan Meister found 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% to $26.7 billion. This growth followed Indian gaming’s first-ever decline of 1% in 2009 and marks a turnaround after five straight years of slower growth. Also on a nationwide basis, Indian gaming outperformed the commercial casino segment and the card room segment, which declined approximately 0.1% and 2%, respectively, in 2010. However, the racino segment outgrew Indian gaming with about 5% 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% in Alabama to -9% in Nevada. Furthermore, it declined in 10 of 28 states, and in 51% of all Indian gaming facilities. Gaming revenue was also very concentrated. The top 30% of Indian gaming facilities generated 85% of gaming revenue, while the bottom 35% accounted for only 2% of gaming revenue.

2011 Edition:  Ailing Economy Takes Toll on Indian Gaming

Indian Gaming Industry Report 2011In 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 approximately 1%, from $26.8 billion in calendar year 2008 to $26.5 billion in calendar year 2009. This decline was slight considering the 7% decline in the commercial casino segment of the gaming industry, but continued the slowdown in Indian gaming over 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, some 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, Florida, Texas, and Nebraska.

2009-2010 Edition:  Recession and Public Policies Curb Indian Gaming Growth

Indian Gaming Industry Report 2009-2010In 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 $26.8 billion in 2008 and nearly 2%, 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. Twelve of the states with Indian gaming experienced declines in gaming revenue, while 16 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% of all gaming revenue at Indian gaming facilities nationwide in 2008.

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

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

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