It’s celebration time in the world of tribal casinos as they rolled in record-breaking revenue of nearly $41 billion during the 2022 fiscal year, which came to a triumphant close on June 30! Hold on to your seats as we take you on a thrilling ride through the resounding success of Native American gaming establishments.
According to the National Indian Gaming Commission (NIGC), the remarkable $40.9 billion won by tribal casinos marks a stellar 4.9% year-over-year increase. This outstanding feat outshines the previous record of approximately $39 billion in GGR reported in FY2021, setting new heights for the industry!
E. Sequoyah Simermeyer, Chair of the NIGC, expresses awe at this historic achievement, emphasizing the resilience of tribal gaming operations that have weathered the storms and emerged stronger than ever. Their unwavering strength has enabled tribal gaming to rebound and thrive, playing a pivotal role in fostering sustainable economies.
The NIGC’s meticulous review of 519 audited financial statements from 244 tribes, operating federally regulated casinos, yielded this incredible data. Notably, the end of the fiscal period witnessed 519 tribally owned and/or operated licensed gaming establishments flourishing across 29 states.
Federal oversight
The NIGC, birthed in 1988 through the Indian Gaming Regulatory Act (IGRA), plays a crucial role in providing federal oversight for the gaming ventures of federally recognized tribes. The IGRA paved the way for tribes to utilize gaming as a means of supporting their sovereign nations.
Under the IGRA, federal tribes are empowered to operate traditional and electronic bingo games, as well as small games of chance on their sovereign lands. Moreover, the Act established a regulatory structure for tribes to enter into Class III compacts with their respective states. These agreements grant tribes the authorization to offer Las Vegas-style slot machines, table games, and sports betting at their casinos, provided the states ratify the compacts.
Tribal Gaming triumphs over challenges
With only two instances of year-over-year decline in tribal gaming revenue since FY02, the industry has proven its resilience time and again. Minor dips occurred between FY07 and FY08, when GGR slightly decreased from $26.7 billion to $26.5 billion. The most recent downturn was during 2019 to 2020, impacted by the COVID-19 pandemic, as revenue slipped from $34.6 billion to $27.8 billion.
However, the NIGC reminds us that the topline revenue might not fully reflect the economic health of the tribal gaming industry. Various factors, such as new gaming operations, expansions, renovations, temporary or permanent closures, and changes in fiscal years, can influence GGR.
Delving into the specifics, NIGC Vice Chair Jeannie Hovland highlights the widespread success, with 55% of tribal casinos securing revenues of less than $25 million. Remarkably, only 8% of these gaming establishments generated GGR exceeding a staggering $250 million!
Hovland aptly rejoices in the triumph of Indian gaming operations, as they create opportunities for tribes to invest in their future, enhancing the quality of life for Native individuals, families, and communities.
The stars align for commercial casinos
Tribal casinos are not the only ones basking in victory; commercial casinos also experienced an extraordinary year. In 2022, commercial casinos achieved a groundbreaking feat, winning a record $60 billion, boasting an incredible 14% surge from the previous year.
Bill Miller, President, and CEO of the American Gaming Association, exclaims with pride that the industry surpassed all expectations, attributing this success to the soaring number of American adults choosing casino gaming for entertainment in record numbers.
So, whether it’s tribal or commercial casinos, the stars have aligned to make 2022 a year of triumph, setting the stage for a promising future in the world of gaming entertainment!
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