RubinBrown Gaming Stats 2012

Tulsa Region

$1.8 Billion

3.2% 65 Ops

1.6% Ops

Photo courtesy of the Prairie Band Potawatomi Casino & Resort and the Firekeeper Golf Course located in Mayetta, Kansas

The Tulsa Region continued to experience steady growth in 2010, generating $1.8 billion in gaming revenues, an increase of $54.1 million, or 3.2%, when compared to 2009.

• The Kialegee Tribal Town, one of Oklahoma’s smallest tribes based on population, has commenced the development of their first casino, the Red Clay Casino, in Broken Arrow. The casino will be built in several phases, with the initial phase consisting of the construction of a temporary facility with 450 Class II and Class III gaming devices. The temporary facility is expected to open in April 2012. Tribes in Kansas continue to see increased competition from the commercial gaming industry. In anticipation of the increased competition, the Prairie Band Potawatomi Nation opened the Firekeeper Golf Course during the Spring of 2011. The course also helped transform the facility into a resort destination. The opening of the course also marked a milestone, as it was the first signature course designed by Notah Begay III, the only full-blooded Native American on the PGA tour. Since the opening of the Firekeeper Golf Course, the Prairie Band has seen two new commercial casinos enter the market. The Kansas Star, located south of Wichita, opened in December 2011 and the Hollywood Casino at Kansas Speedway opened in February 2012. The Tulsa Region has continued to experience an increase in gaming revenues as the market continues to develop. With the majority of the casinos in the Tulsa Region located in Oklahoma, the tribes have benefitted from an overall lack of commercial competition. However, unlike other regions, the close proximity of tribes and facilities has lead to increased competition between tribes. To see continued growth, tribes will seek innovation and expansion of amenities in response to the increased competition.

In 2010, the Tulsa Region’s 65 casinos, operated by 18 tribes (14 in Eastern Oklahoma and 4 in Kansas), represented 15.4% of all casino operations; however, the region only generated 6.7% of the total Indian gaming revenues. Within Oklahoma, the tribes contribute a portion of Class III gaming revenue for the exclusive right to offer gaming. In 2010, the three tribes located within the Tulsa Region which contributed the most state revenue contributions were the Choctaw Nation ($22.8 million), Cherokee Nation ($12.2 million), and Muscogee (Creek) tribe ($8.6 million). When examining the state contribution data, growth appears to be slowing for the region. In 2011, state contributions from tribes in the Tulsa Region increased by only 1.9%, which is the lowest growth rate seen by the region since the expansion of Class III gaming. As growth continues to slow in the Tulsa Region, Oklahoma tribes are looking for ways to increase their market share through the expansion of facilities and amenities. Significant expansion efforts within the Tulsa Region include the following: • The Eastern Shawnee tribe has plans to open a new casino within Ottawa County in 2012. The new casino will consist of a 117-room motel, restaurant, food court and between 1,300 and 1,500 gaming machines. • The Cherokee Nation is building a third hotel tower at the Hard Rock Hotel & Casino Tulsa in Catoosa which will add 100 suites and include more than 55,000 square-feet of additional entertainment and gaming space. This hotel is expected to be completed in 2012.

Commercial & Tribal Gaming Stats 2012 - RubinBrown 24