RubinBrown Gaming Stats 2011

Executive Summary

Introduction The RubinBrown Gaming Stats publication was created in order to provide a comprehensive and comparative report of key gaming statistics of commercial gaming operations (excluding racinos) in Colorado, Illinois, Indiana, Iowa, and Missouri and tribal gaming operations in Arizona, Colorado, Kansas, New Mexico, and Oklahoma. The statistics include high level national and regional comparisons as well as detailed state-by-state information of 2010 gross gaming revenues, tax contributions, admissions, electronic gaming devices, table games, and incident reports for the commercial and tribal casinos. Within the U.S., there are 458 commercial land-based and riverboat casinos in 14 states. The five states referenced in this publication comprise 25 percent of 2010 adjusted gross receipts of the 14 states with commercial gaming. Colorado and Missouri were the only two of the five states referenced that experienced an increase in gaming revenue in 2010. From a tribal perspective, there are 240 tribes operating 447 Class II and Class III casinos in 29 states. The five states referenced in this publication represent 36 percent of the Class II and Class III tribal casinos in the U.S. Information used to compile the statistics provided in the following pages was obtained from the state gaming regulatory authorities, the American Gaming Association, and the National Indian Gaming Commission (see page 48 for the complete listing of sources). General Industry Economic Update As our nation continues to feel the effects of the 2007 Great Recession, it is clear that the gaming industry is not recession proof. Operators and tribes have felt the impact of reduced consumer spending, mergers, bankruptcies, stricter lending requirements, and stalled capital projects. Although the gaming industry suffered their worst decline over the past three years, the rebound is starting to occur. Predictions anticipate it will take many years for the industry to recover to pre-2007 revenues. However, the gaming industry continues to expand through changes in gaming legalization, updates in technology, and expansion into new markets. Gaming dollars remain a strong source of revenue for states and tribes throughout the United States.

Tribal While Tribal gaming properties have been able to avoid the high tax rates imposed by state regulators, they have been challenged by a shortage of lenders within the capital markets. In early 2010, the Wells Fargo Bank, N.A. v. Lake of the Torches Economic Development Corporation decision brought into question the recourse available to lending institutions. Since this decision, lenders have severely limited or stopped lending to tribal gaming organizations based on the fear, that in the event of default, tribal sovereignty or the application of the Indian Gaming Regulation Act (IGRA) would limit the lender’s ability to recoup their investment. Beyond the lending climate, Tribal casinos continue to feel the impact of regional casino openings and increased competition. Major tribal operators continue to seek new opportunities in commercial gaming to boost their brands and leverage their loyalty programs.

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