One of the first things to suffer during a recession is disposable income – activities such as gambling are among the first to go. Today, approximately 240 (43 percent) of the 562 federally recognized Indigenous nations engage in some form of gaming by operating more than 400 casinos and bingo halls throughout 28 states. Yet the Indian Gaming Regulatory Act (1988) was never meant to sustain Indigenous economies over the long haul. Most Indigenous nations operating casinos break even under the best of economic circumstances (fewer than 20% of Indigenous nations operating casinos generate about 70% of the $26.7 billion in revenues). So how have Indigenous nations with casinos fared since the economic crisis of 2008?
Based on a June 2009 press release from the National Indian Gaming Commission, Indigenous gaming revenues in 2008 totaled $26.7 billion, which was an increase of 2.3 percent from the prior year. In comparison, general commercial and racetrack casino sectors (excluding Indigenous gaming) experienced a 3.4 percent decline in gaming revenues in 2008, generating a total of $36.2 billion. These statistics can be misleading, however, as the global economic downturn has negatively impacted Indigenous casino profits in several regions. For example, the Foxwoods Resort and Casino operated by the Mashantucket Pequot Tribal Nation and the Mohegan Sun operated by the Mohegan Tribe in Connecticut reported slot revenues of $1.6 billion in 2008, representing a drop of about 7 percent from 2007. Seneca Gaming, which operates three Class III casinos in upstate New York, reported an 8.7 percent decline in the third quarter and an almost 10 percent decline in the fourth quarter of 2008. Indigenous casinos in California, Nevada, Arizona, New Mexico, and Colorado also showed significant declines in gaming revenue towards the end of 2008.
These regional declines don’t appear to have strongly impacted Indigenous gaming in Oklahoma. Recently, the Cherokee Nation Enterprises reported a profit of $116 million in 2008, which was a $4.4 million increase (4 percent) since 2007, “but also was the lowest growth amount since 2001”. According to Kelli Bruer, public relations manager for Cherokee Nation Enterprises, “The top line slowed a little,” and “ongoing construction during the year at the West Siloam Springs casino and the recession may have slowed the numbers some”. Even so, Cherokee Nation Enterprises also increased its workforce between 2008 and 2009, going from 3,180 employees to 3,399 employees, a substantial increase from 10 years ago when there were only 511.
As with other Indigenous nations running casinos, the Cherokees have also been distributing informative brochures entitled Where the Casino Money Goes to its citizens. In 2008, for example, forty percent of the Cherokee casino profits ($174 million) went toward operating expenses, while thirty percent of the money ($131.7 million) went towards employee payrolls (most of whom of Cherokees). Another twenty-six percent ($116 million) went towards new job creation and services for Cherokee elders, youths and communities and the final four percent ($18.9 million) was earmarked for gaming compact fees with the state. As these figures and the long histories of Indigenous nations suggest, gaming was never meant to be the main engine for all Indigenous economic development – it is only one pathway that Indigenous nations choose to implement based on their self-determining authority. The question remains whether Indigenous gaming revenues have peaked and will level off or experience a steady descent, or whether the growth will continue…to what extent are we gambling with our futures?
Sources:
Adcock, Clifton. June 17, 2009. “Tribe’s Casino Revenue Up Again.” Tulsa World. Available at: http://www.tulsaworld.com/news/article.aspx?articleid=20090617_11_A9_Despit825452
“NIGC Announces 2008 Revenues”, June 3, 2009. National Indian Gaming Commission. Accessed at: http://www.nigc.gov/ReadingRoom/PressReleases/PressReleasesMain/PR113062009/tabid/918/Default.aspx
“2008 National Commercial Casino & Racino Gaming Revenue Analysis”. Accessed at: http://casinodev.com/revisedsitework/homepage/2008National.pdf