Supplier News
US – Five years of growth sees tribal gaming top US$28bn
By Phil - 29 July 2015
The Indian casino market in the United States has reported five years of year-on-year growth with its 2014 figures coming in at US$28.5bn according to figures National Indian Gaming Commission.
Jonodev Chaudhuri, Chairman of the National Indian Gaming Commission, said: “Overall, the Indian gaming industry remains stable. Stability comes from solid operations, strong tribal management, and effective regulation by the Indian gaming’s regulatory community, which includes the NIGC and more than 5,400 tribal regulators. Sound regulation is an essential pillar of support for the critical avenue of self-sufficiency and self-determination that Indian gaming has proven for so many tribal nations. Sound regulation preserves public confidence, protects tribal assets, and promotes a safe and fair environment for all people who interact with the industry.”
The 2014 GGR of $28.5bn represents a 1.5 per cent growth in revenue from the 2013 GGR of $28bn. Overall in 2014, 72 per cent of operations showed moderate year-over-year changes. Of the operations that reported an increase in revenue, approximately 68 percent showed moderate growth. There was a net of ten new Indian gaming operations added is 2014.
Small and moderate gaming operations, those operations making less than $25m, make up nearly 60 per cent of the Indian gaming industry. Many Indian tribes use gaming revenues to fund economic development activities on reservations and more effective provision of tribal government services, including health services, early education programs and language and cultural preservation activities.
In 2014, 88 Indian gaming operations reported gaming revenue less than $3m, 76 Indian gaming operations reported gaming revenue between $3m and $10m and 96 Indian gaming operations reported gaming revenue between $10m and $25m.
“The Indian gaming industry is driven by the demographics of each area. Many tribal gaming operations are in rural parts of the country where jobs are greatly needed for both natives and non-natives alike,” said Mr. Chaudhuri. “Tribal gaming revenue – unlike commercial gaming – is heavily regulated, purposed specifically to support Tribal governmental services, to benefit Indian Nations.”
The largest increase in GGR of 4.4 per cent or $305m occurred within the Sacramento Region, which consists of 68 gaming operations across California and northern Nevada. The Oklahoma City Region, which consists of 65 gaming operations in Texas and western Oklahoma, had the largest percentage increase from 2013–7.5 percent or $141m.
“Over the last several years our regulatory review has provided much needed reform to meet the needs of the changing industry and provide flexibility and consistency for tribes and tribal regulators. I believe that regulation has played a key role in the stability of the Indian gaming industry by providing consistency and predictability, a requirement for any financial market,” said Mr. Chaudhuri.
“And to that principle, I have set policy that I believe effectively balances tribal sovereignty with our regulatory responsibilities and will continue to provide consistency and predictability within the industry.”
“As someone who has witnessed the undeniable benefits the Indian gaming industry has provided to many Native communities, I know the importance of protecting it,” he added. “An efficient, well-functioning, and effective regulatory structure protects the industry and promotes its integrity and health.”
The NIGC’s GGR release provides the most comprehensive look at the revenues of the Indian gaming industry each year. GGR also provides a regional view of revenues figures for the more than 450 gaming establishments, associated with nearly 242 tribes across 28 states.
The 2014 GGR is calculated based on 459 independently audited financial statements received by the NIGC through July 8, 2015. Financial statements are submitted by Indian gaming operations in accordance with the Indian Gaming Regulatory Act. Gaming revenues represent the net win from gaming activities, which is the difference between gaming receipts and payouts
