RubinBrown Gaming Stats 2014

TRIBAL GAMING ANALYSIS

2012 Revenue Analysis Indian gaming revenues grew by 2.8% in 2012, setting a new industry gaming revenue record of $27.91 billion. As the Indian gaming industry continues to grow, the tribes benefitting from gaming still only represent 42.7% of the 565 federally recognized tribes. At the end of 2012 the industry consisted of 241 tribal nations, operating 425 casinos, located in 28 states.

While the Indian gaming industry continues to produce year-over- year revenue increases, existing casinos are facing challenges from increases in competition. In 2012 the average revenue per casino was $65.66 million, which remained $1.2 million below the $66.86 million peak established prior to the economic recession starting in 2008. The increase in competition is the product of two primary factors that include: Expansion of Indian Gaming: Since 2008, there have been 20 new casinos that have opened. While the increased number of casinos has provided more tribes with access to the economic benefits produced by gaming; it has increased the competition and reduced the market share held by tribes with existing casinos. Expansion of Commercial Gaming: Since 2008, tribes in Connecticut, Kansas, New York, New Mexico, and Oklahoma have endured the negative impacts of increased competition from commercial gaming expansion. The expansion of state gaming has reduced tribal gaming revenues which is used to further the economic develop of tribal communities. Looking forward, the Indian gaming industry can anticipate further increases in competition and existing operators should anticipate declining revenues. The finalized 2013 industry data will not be released until late July 2014; however, preliminary estimates indicate the collective Indian gaming industry will see revenue decline or remain relatively flat (growth of -1.0% to 2.0%).

Five Year History of Indian Gaming Revenues

$28.00B

13%

$27.91B

$27.75B

12%

$27.50B

11%

$27.25B

10%

$27.15B

$27.00B

9%

$26.74B

$26.75B

8%

$26.50B

$26.48B

$26.50B

7%

5.77%

6%

$26.25B

5%

$26.00B

4%

$25.75B

3%

$25.50B

2.07%

1.77%

2%

$25.25B

$25.00B

1%

0.45%

0.51%

$24.75B

0%

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012

3 Year Compounded Annual Growth Rate

14 | 2014 Commercial & Tribal Gaming Stats