RubinBrown Gaming Stats 2012

This decline in tribal gaming revenue growth over the last few years can be attributed to two primary factors. First, the economic recession during the end of the last decade caused a decrease in consumer discretionary spending. The second important factor, while not as drastic, is the increase in competition from commercial casinos. With multiple states opening new commercial properties, tribal casinos are finding ways to differentiate themselves. Differentiation seems to be possible through renovation and expansion of current properties; however tribal casinos are physically limited due to their tribal lands. In order to expand into new territories, tribes must receive approval from federal and state governments. Regulatory approval is a slow process as a result of much opposition not only from state officials, but also from local residents. Industry Trends A common theme for tribal casinos over the last year was to increase their number of service offerings to their patrons by creating a “destination like resort” at their current properties. Many tribes have added hotels, spas, new restaurants, and even event and convention centers to their casinos to attract a broader range of patrons. Tribal casinos are hoping to draw patrons in with new games and slot machines, but also keep patrons at the property longer with new hotel rooms and restaurants. Multiple tribes have reevaluated or renegotiated their state compacts in order to expand their gaming floors and increase the number of slot machines at their properties. Patrons are enticed by the new service offerings, but remain attracted to the new games and machines where they can test their luck. The true market leaders in the tribal gaming industry will not only differentiate themselves through renovation and expansion, but will also expand into new territory through the acquisition of new tribal lands or the establishment of commercial gaming enterprises. In 2011, the Department of Interior reversed an earlier ruling requiring that casinos be within commuting distance of reservations. The reversal now allows tribes to build off- reservation casinos by placing the land into a trust by the Interior Department. In acquiring land for gaming there is a two step process that must occur. First, the Secretary of the Interior (which also oversees the Bureau of Indian Affairs) must approve the land taken into trust after determining that the casino is in the best interests of the tribes and not detrimental to the surrounding community. Secondly, the governor of the state where the land is located must concur with the federal government’s determination. In California, two tribes have received initial approval from the Secretary of Interior and are awaiting the governor to concur with the decision. As some tribes look to expand tribal territory by securing land in trust, the Chickasaw Nation continues to be a market leader by looking beyond its borders. Through the establishment of Global Gaming Solutions, the Chickasaw Nation is operating various commercial racinos within the United States and has developed various international joint ventures. However, it is still uncertain if “off-reservation” casinos, along with the renovation of current properties, can revitalize the growth once experienced by the tribal gaming industry.

Indian Gaming Facilities by State

Number of Class II and Class III Gaming Facilities

State

Number of Tribes Operating Gaming Facilities

1

Alabama

1

3

2

Alaska

2

2

3

Arizona 1

15

22

4

California

60

62

5

Colorado

2

2

6

Connecticut

2

2

7

Florida

2

8

8

Idaho

4

7

9

Iowa 1

3

3

10

Kansas 1

5

5

11

Louisiana

3

3

12

Michigan

12

22

13

Minnesota

11

35

14

Mississippi

1

3

15

Montana

7

9

16

Nebraska 1

3

4

17

Nevada 1

2

2

18

New Mexico

14

22

19

New York

3

6

20

North Carolina

1

2

21

North Dakota

5

7

22

Oklahoma 1

32

110

23

Oregon

9

9

24

South Dakota 1

9

10

25

Texas

1

1

26

Washington

23

32

27

Wisconsin

11

25

28

Wyoming

2

4

239

422

Total 1

1 There are 239 tribes operating casinos within the United States. Of the 239 tribes, six tribes operate casinos in multiple states. The Number of Tribes Operating Gaming Facilities, by individual state, includes all tribes operating casinos within the respective states.

Commercial & Tribal Gaming Stats 2012 - RubinBrown 16