RubinBrown Gaming Stats 2011

Oklahoma Indian Gaming Analysis

Amidst an economic recession and after years of denying tribes the sovereign right to operate full service Class III gaming facilities, the state of Oklahoma continues to benefit from record setting gaming revenue

Northwestern Region

Northeastern Region

North Central Region

Western Region

Central Region

contributions. In fiscal year 2010 (ending June 30, 2010), Oklahoma collected $118.2 million in gaming revenue contributions, which was 12.0%, or $12.6 million, more than fiscal year 2009. When comparing fiscal year 2010 to fiscal year 2008, the year the economic recession began, Oklahoma collected 45.2%, or $36.8 million, more in gaming revenue contributions in 2010. Since 2005, the year Oklahoma signed its first full service Class III compact; Oklahoma has generated $368.6 million in gaming revenue contributions. The growth in Oklahoma gaming revenue contributions is unprecedented within Indian Country and is only comparable to growth seen in Pennsylvania commercial gaming, which has seen tax revenues increase by 44.4% since 2008. While the states share rapid growth in gaming revenue contributions, the two states share very different stories. The growth in Pennsylvania is attributed to the recent legalization of commercial gaming and the increase in tax revenues is indicative of the properties generating more top-line revenues. Meanwhile, Oklahoma tribes have been operating gaming facilities for nearly two decades, struggling with the State in completing good faith negotiations for Class III gaming

Southeastern Region

Southwestern Region

South Central Region

facilities. After nearly 15 years of building the Oklahoma gaming industry to generate $1.7 billion annually, the state conceded to permit full service Class III gaming with the condition that the state join in on the benefits of gaming. The growth in Oklahoma gaming revenue contributions is primarily due to the industry shifting from Class II to Class III machines. Utilizing fiscal year 2009 and fiscal year 2008 data, there is a significant disparity between the growth in top-line gaming revenues and state gaming revenue contributions. According to the NIGC regional gaming analysis, the Tulsa and Oklahoma regions combined to produce revenue growth of 5.8% during fiscal year 2009. During this same period, the state of Oklahoma recognized contribution revenue growth of 29.7%. (Note: Of the 113 properties included in the NIGC Tulsa and Oklahoma regions, seven are located outside of Oklahoma.) Applying the same comparison to the forecasted fiscal year 2010 revenues, a similar disparity is anticipated.

Oklahoma Tribal Gaming Statistics

Date First Tribal Compact Signed

January 2005*

Date First Tribal Casino Operated Under a State Compact

January 2005*

Number of Tribes Operating Casinos

30

Number of Casinos

105

FY 2010 State Gaming Contributions

$118,211,702

*Indian Gaming has resided in Oklahoma since soon after the enactment of IGRA. However, it was not until 2005 that the state compacted with tribes to operate full service Class III facilities, including electronic devices and tables games.

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