Indian Gaming Industry Report 2015 Released

April 7, 2015 In the latest edition of the Indian Gaming Industry Report, Nathan Associates?\r\nPrincipal Economist Dr.Alan Meister finds that despite the struggling economy, Indian gaming on a nationwide basis experienced its fourth consecutive year of growth in 2013, the most recent year for which data are available. Gaming revenue grew approximately 0.5%, reaching an all-time high of $28.3 billion. In the aggregate, there were 244 Native American tribes operating 479 gaming facilities in 28 states.

Reasons for Slower Growth

Indian gaming growth in 2013 was slower 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 racino and card room segments declined -0.2% and -0.3%, respectively. The drop in gaming revenue in the racino segment was its first ever decline.

Performance Varied Widely

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, 17 experienced gaming revenue growth. Indian gaming in Texas, Nebraska, North Carolina, and Montana grew the fastest, all experiencing double-digit growth on a statewide basis. On the other hand, Indian gaming in 11 states experienced a decline in gaming revenue. The growth of gaming revenue in 2013 ranged from +39% in Texas to -8% in New York.

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.

Economic Impact of Indian Gaming

Indian gaming had significant economic impacts despite the general slowdown in 2013. 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 2013, the impact on the U.S. economy totaled approximately $91 billion in output 612,000 jobs $28 billion in wages; $2 billion in direct revenue sharing payments by tribes to federal, state, and local governments and $7 billion in federal, state, and local taxes on secondary economic activity stimulated by Indian gaming.

About the Indian Gaming Industry Report

The Indian Gaming Industry Report is the most comprehensive, up-to-date study of Indian gaming available. It provides information on the number of facilities, tribes, gaming machines, and table games; gaming and non-gaming revenue tribal revenue sharing with state and local governments; pending and approved land-in-trust applications for gaming and the economic and fiscal contribution of Indian gaming to the U.S. economy. The study also provides detailed background and cutting edge analysis, including state-by-state market summaries a historical review trend analyses comparisons of Indian gaming across states comparisons of Indian gaming to other gaming segments, including commercial casinos, racinos, and card rooms; and a future outlook.

For over 15 years, Dr. Meister has conducted extensive research and analysis of the gaming industry, including Indian gaming. 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. Dr. Meister’s work is frequently cited in the press, and his studies are a trusted resource for government and regulatory agencies, investors, and the industry itself, as well as associated industries. In 2014, Dr. Meister’s work in the Indian Gaming Industry Report was also cited by the U.S. Supreme Court in its decision in the Michigan v. Bay Mills Indian Community et al. case.

For more about the Indian Gaming Industry Report, please visit www.indiangamingreport.com. For the executive summary of the 2015 Edition, please click here.

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