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Tribal Gaming Revenue Hits Historic $40.9 Billion Revenue in FY 2022
By Jeff Osienya Jul 20, 2023 IndustryUSA’s tribal gaming scene has crushed previous revenue milestones with a smashing $40.9 billion haul for the 2022 financial year. Here’s a closer look at the impressive numbers and what they mean for the future of the nation’s tribal gaming sector.On July 19, the National Indian Gaming Commission (NIGC) reported a new all-time-high for revenue generated by Indian tribal casinos in the US, hitting a staggering $40.9 billion in FY 2022. This is a 5% increase (or about $2 billion more) from the $39 billion reported at the end of the 2021 fiscal year.
The increase was reported across seven out of eight regions where the tribes have set up casino operations in the US. The data for this year’s NIGC report was collected from 519 financial statements drawn from 214 tribal operators with federally-regulated casinos.
Economic Impact on Tribal Communities
According to the NIGC, the ground-breaking figure does not necessarily point to the overall economic growth of all the tribal communities engaged in gambling activities. This is because there may be several catalysts to the growth, which may include factors like:
Quote“new gaming operations, expansions or renovations to existing operations, temporary or permanent closures, or changes in a gaming operation’s fiscal year.”
On the other hand, leaders have come out to commend the rise in Gross Gaming revenue, adding that it is a cause for celebration. Generally, 55% of the tribal casinos brought in less than $25 million during the year, although about 8% reported a staggering yield of up to $250 million each. Sacramento led in total GGR even though it reported an overall decrease compared to last year. Phoenix recorded an impressive 15.7% revenue rise, despite coming in as the fifth-highest revenue.
NIGC Vice Chair Jeannie Hovland, who admitted to visiting various tribal casinos in the past year, commended the tribal operators’ efforts in the past fiscal year, saying:
Quote“We have cause to celebrate the opportunity successful Indian gaming operations affords tribes to invest in the future and improve the quality of life for individual Native people, their families, and their communities.”
Hovland also reported that in her interactions with Indian gaming operators during the FY 2022, she had noticed that gaming revenues generated through tribal casino operations have been instrumental in helping improve livelihoods. That’s because the proceeds were allocated for community efforts such as access to clean water, healthcare, higher education, renewable energy resources, and social welfare initiatives and programs. Hovland explained:
Quote“In short, gaming revenues have helped to preserve the ways of the last seven generations and allowed tribes to plan for the next generations.”
The Commission also pointed out that the revenue rise resulted from the operators’ resilience, especially when it comes to rebounding from difficult situations in the past. This includes the FY08 and FY09 when the 2008 Great Recession, which, although beginning in 2007, spilled over to the 2009 fiscal year. The NIGC Chair, E. Sequoyah Simermeyer, noted:
Quote“This year’s historic revenue reflects the resiliency of many tribal gaming operations and how tribal gaming continues to rebound and remain strong…Tribal governments and the operations they license continue to explore new and innovative ways to expand and deliver world-class experiences to cultivate sustainable economies.”
Simermeyer also explained that despite tribal casino closures that resulted from the pandemic in March 2020, Indian gaming has done well in a general sense. Another Indian gaming official that expressed his delight in the numbers is Indian Gaming Association (IGA) chairman Ernie Stevens. Stevens remarked.
Quote“We always keep our fingers crossed when these numbers are released, but I am pleased to see the rebound from the pandemic era and continue to grow. It’s a credit to our tribal leaders, casino operators, managers, and regulators, who are continuing to make what is good, much better through their hard work and dedication. We see it as a responsibility to our tribal communities.”
A Path Towards Nonstop Growth
The US gambling industry has always been a moving train of its own, with the evolution of technology and decentralized gambling legislation in several jurisdictions. And the strides made so far have been vital in putting the sector where it is today. Following agreements made between the states and tribes within their borders, there are specific regulations like the Indian Gaming Regulatory Act of 1988, which govern Indian gambling.
For instance, IGRA is the informational document used to establish the Commission and debate legislation matters wherever and whenever they arise. The synergies created by involving government departments and regulatory bodies have enabled an ever-promising trajectory. The tribal communities have been known to go for what they set their eyes on, and the gambling industry has been an area of interest for well over three decades.
Continued record of high revenues over the years is proof of the resilience and innovative ways in which tribal casino operators have had to adapt to stay relevant and entertaining in a competitive market. And while the Covid-19 pandemic definitely disrupted the industry, most businesses are in recovery, including casino operations run by the Native American communities.
Gaming at tribal venues appears to be a go-to for lots of Americans, and as legislative processes continue to shape the landscape of the casino gaming scene, there is yet more to come from these venues. Policymakers, lawmakers, and the tribes have been working together to ensure that tribal operators are given some priority in some aspects, allowing the communities to benefit as much as possible from gaming activities at tribal venues.
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