RubinBrown Gaming Stats 2012

Phoenix Region

$2.5 Billion

-2.4% 48 Ops

2.1% Ops

Photo courtesy of the Sandia Tribal Gaming Commission and the Sandia Resort and Casino located in Albuquerque, New Mexico

In the Phoenix Region, tribal casinos experienced a decline in gross gaming revenue despite efforts to expand and open new casinos. In 2010, the Phoenix Region generated $2.5 billion in revenues, which was $61.3 million, or 2.4%, less than the revenues generated in 2009.

competition from the Navajo Nation’s new casino in northwestern New Mexico. The Ute Tribal Council and the western Colorado town of Dinosaur have discussed a potential agreement to develop a resort casino in that region. Both the U.S. Bureau of Indian Affairs and the governor’s office will have to approve the tribe’s purchase of land for the casino. The tribal gaming industry in New Mexico consists of 21 Class III casinos operated by 14 tribes. Under their compact agreements, the tribes share a portion of their revenue with the state. Total gaming revenue in the state decreased 2.2% in 2010; however, state gaming contribution data suggests a rebound in 2011. Ten of the fourteen tribes reported an increase in revenue contributions in 2011, resulting in a 2.9% statewide increase in revenue contributions. The number of tribal casinos in New Mexico has also been increasing. In October 2010, the Navajo Nation opened their Flowing Water Navajo Casino which offers 120 slot machines. In January 2012, the Navajo Nation opened its third casino in New Mexico, the Northern Edge Navajo Casino. The casino has 750 slot machines, 6 poker tables, and 10 live table games. Late in 2011, the Fort Sill Apache received land in southern New Mexico, for the purposes of establishing a reservation, and have already begun discussing the prospect of building a new casino. For tribes in the Phoenix Region, 2010 proved to be a difficult year as gross gaming revenue decreased; however, the outlook appears optimistic as tribes look for ways to expand. Early 2011 state tax contribution data indicates the expansion efforts have initiated recoveries in the region’s largest markets.

The Phoenix Region’s 48 operations accounted for 11.4% of total tribal casinos in the United States, but only 9.6% percent of total gross gaming revenues. While revenues continued to decline in 2010, projections in 2011 are more optimistic. Both Arizona and New Mexico, the region’s two largest markets, showed increases in state revenue contributions during 2011. Arizona has 22 Class III tribal casinos operated by 15 tribes. Each tribal casino contributes a percentage of gaming revenues to the state under a graduated state contribution scale that ranges from 1 – 8% of gross gaming revenue. In 2010, gaming revenue contributions collected by the state declined by 7.7%; however, the market appears to have bottomed out, as the state collected 0.4% more in gaming revenue contributions during 2011. Amidst the declining market, several tribes in Arizona have shown interest in expansion. The Pascua Yaqui Tribe in southern Arizona opened a new 215 room resort casino in November 2011. The Navajo Nation plans to open its first casino in Arizona near Flagstaff in the spring of 2013. The Tohono O’odham Nation is looking to open a casino resort in the Glendale area, but is facing opposition from the city of Glendale and several Indian tribes in the area. The Nation says it will continue to move forward with the project and estimates that the casino resort will have a $300 million annual economic impact. In Colorado, two tribes operate two casinos in the southwestern portion of the state. The Ute Mountain Ute Tribe opened Ute Mountain casino in 1992 and the Southern Ute Indian Tribe opened Sky Ute Casino in 1993. Both casinos will face increased

21 RubinBrown - Commercial & Tribal Gaming Stats 2012