Indian Gaming Industry Report 2013 Released

February 27, 2012?In the new edition of the annual Indian Gaming Industry Report, Nathan Associates? Principal Economist 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.

While Indian gaming experienced modest growth on a nationwide basis in 2011, its performance varied widely across facilities, tribes, and states. 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. At the facility level, approximately 65 percent of Indian gaming facilities experienced growth in gaming revenue in 2011, while about 35 percent experienced declines. Gaming revenue was also very concentrated. The top 31 percent of Indian gaming 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 total 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 nationwide growth in 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.

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 applications for land into trust for gaming purposes; 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 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 assessments of the historical and future performance of Indian gaming.

Dr. Meister has conducted extensive research and analysis of the gaming industry, particularly Indian gaming, over the past 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. 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.

For more about the Indian Gaming Industry Report, please visit www.indiangamingreport.com.

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.
T: 949-474-4955