US commercial casinos operate to make profits for shareholders and owners. On the other hand, tribal casinos support tribal self-determination and drive community economic development. As such, it's clear why many are celebrating the latest National Indian Gaming Commission (NIGC) report for tribal operated casinos in the US.

NIGC recently unveiled its 2023 fiscal year revenue numbers, noting a gross gaming revenue of $41.9 billion. This represents a 2.4% ($1 billion) increase from the previous year's $40.9 billion. Every one of the eight NIGC regions experienced growth in gaming revenue over the past year.

Acting Chairperson Sharon Avery made the announcement at the Green Bay Wisconsin Gaming Regulators Association Summer Conference alongside Jeannie Hovland, the Vice Chair. NIGC emphasized that the 2023 revenue numbers highlight tribal gaming's enduring strength. The commission attributed this growth to the development of new technologies and consumer preference shifts. In Avery's words:

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“The current year's GGR results indicate how a robust regulatory framework and tribal-gaming enterprises diversity generate growth in the industry. Regulators and tribal-gaming operators have once again shown that their determination and ingenuity are driving forces for development, even in a constantly shifting gaming environment.”

She finished by stating that the determination will ensure that tribal gaming remains a vital asset for sustained economic stability within tribal communities.

On the other hand, Hovland praised operators, regulators, and tribal leaders for a successful year. She noted that their commitment to overcoming the challenges of a competitive market proves the tribes' resilient spirit. She said:

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“Their gaming expertise continues to bring significant benefits to their communities, aligning with the goals of the Indian Gaming Regulatory Act.”

NIGC's FY Gross Gaming Revenue Report compiles data from the audited financial statements of 527 gaming operations managed by 245 tribes across 29 states. It's a requirement that every tribe submits financial statements for each fiscal year indicating all the financial operations of all Class II and III gaming operations on their territories.

Sacramento Setting the Pace

All eight regions under the NIGC saw an increase in gross revenue in FY2023. They realized the growth despite challenges like regulatory changes, closures, and expansions. The Sacramento region led with $11.9 billion in gross gaming revenue from its 87 operations. This was two points higher than the $11.7 billion recorded in FY-2022. The DC region had the second-highest revenue of $9.1 billion in its 44 operations, a 2.4% increase from the previous year.

St. Paul's $5 billion gross revenue came third, an increase from $4.9 billion in the 2022 financial year. The Portland region finished FY-2023 with the fourth-highest gross revenue. This territory is home to 53 operations, which generated $4.5 billion. The previous year's revenues were $4.4 billion. Notably, this region includes federal tribes in Washington, Oregon, Alaska, and Idaho.

As Expected, Competition Is Stiffer Than Ever

Oklahoma City, Tulsa, and Phoenix reported similar FY-2023 outcomes. Phoenix recorded a $3.9-billion gross revenue, a 5.5% increase from FY-2022. This territory is home to 54 operations spanning Arizona, New Mexico, Colorado, and a section of Nevada.

Tulsa's gross revenue for FY-2023 was $3.5 billion. The region recorded a slight uptick from the previous financial period's $3.4 billion. Oklahoma City reported a gross revenue of $3.2 billion in FY-2023, compared to $3.1 billion in the previous year. Notably, the Oklahoma City zone covers Texas, one of the most populous states in the US.

The 45 operations in Rapid City recorded the lowest gross revenue among NIGC tribal regions, amounting to $425.8 million. Regardless, it was a huge improvement from $406.1 million in the previous fiscal year.

Tribal Casino Revenue Continues to Boost Native American Economies

The US Congress’ 1988 Indian Gaming Regulatory Act established a legal framework that helps tribes become economically self-sufficient in the wake of declining federal support. This law also regulates the sector's conduct on Indian territories to boost tribal economic growth and strong tribal governments. The IGRA Act restricts the net income from tribal casinos' total revenue usage to these functions:

• Funding tribal government programs and operations
• Supporting the Indian Tribe member's general welfare
• Promoting tribal economic development
• Charitable organization donations
• Funding local government agency operations

The Siletz Tribe perfectly illustrates how communities benefit from these funds. This tribe serves members in an 11-county area in Oregon due to the federal government disposing of their lands and scattering the households throughout western Oregon in the 1950s. Members enjoy educational, health, social, childcare, employment, cultural, and language services. However, the need for these services often surpasses the available funding. This shortage forces the tribe to prioritize programs, create waitlists, and sometimes limit services by location.

A recent report noted that the Siletz Tribe has almost $250 million in unmet needs across its programs in 2022. The proposed Siletz Casino Project was estimated to generate $231 million in its first year; funds meant to address these needs and reduce reliance on federal funding. The tribe plans to share half of the net revenue with Oregon's eight other federally recognized tribes and 25% with the local and state for community improvements. The remaining funds will support the tribe's operations and services, such as child welfare, health clinics, and educational programs.

The Siletz Casino Project will benefit Oregon's tribal communities and modernize infrastructure in North Salem. It targets services, public transportation, roads, and water systems. The project will also build workforce housing and drive more regional economic investment. Community members anticipate the project will significantly boost the local Salem community. Of course, input from local small businesses will be necessary. Projections during the two-year construction phase include:

• Creation of about 2,300 jobs
• About $141 million in wages
• Stimulation of about $492 million in economic impact
• Over $54 million in indirect spending or purchases through local supply chains

From these forecasts, it's evident that the US tribal casinos go beyond the operations of typical commercial casinos. The establishments present a chance to support self-rule and improve access to essential services. They're also meant to uplift tribal communities throughout the country. It's no surprise that tribal communities and other patriots welcomed the news of the record-breaking $41.9B revenue with enthusiasm.