Tribal casino revenues dip in Arizona amidst rise in non-gaming revenue

The revenues of tribal casinos decreased in Arizona in 2016 even amidst a rise in non-gambling, which pushed the total revenue to $2.23 billion for the year.

Casino City’s Indian Gaming Industry Report reveals that among the 28 states with American Indian gambling, Arizona is one of eight states that witnessed a revenue fall in 2016. The general trend among tribal casinos is an increase of 3.9 per cent in total gambling revenue and 8.2 per cent increase in non-gambling revenue in 2016.

Native American Casino with overall gambling revenue showing slower growth in 2016 than in years previous, analysts attributed the drop to a slowing of the national economy.

 “I can definitely tell you the economy was a big factor and not just in Arizona … but across the country,” said Alan Meister, author of the report and economist at Meister Economic Consulting. “Income was down in 2016 versus 2015, and that is the main key driver of casino spending by patrons.”

Arizona saw total gambling revenues in 2016 hit $1.902 billion with non-gaming revenues, namely hospitality and entertainment services including lodging, restaurants, and retail in at $328 million. 2015 gambling revenues came in at $1.905 billion and non-gambling revenues at $301 million.

Irrespective of the decline in certain states, the numbers overall pointed to steady growth in tribal casino revenue since the end of the recession driven by the 2007–2008 financial crisis. Total gambling and non-gambling revenues in Arizona climbed to $2.27 billion to come in just under the pre-2007 recession peak, according to the report’s author.

“Over the past five years, the Arizona gaming revenue side has declined slightly this past year, it had two pretty flat years, but it had two decent years,” Meister said. “And if you look at the past five years in terms of non-gaming revenue, it’s very strong.”

The upward climb in non-gaming revenues seen in Arizona was also indicative of a nationwide trend, as tribal casinos across the 28 states that allow for American Indian gambling facilities have worked to expand their non-gaming offers, including lodging capacity, retail space, entertainment, and dining options.

 “In Las Vegas, our gambling revenues were declining compared to non-gambling revenues because we were diversifying so much with entertainment and non-gaming amenities. And I think you’re seeing that as well in the tribal communities,” said Jennifer Roberts, associate director at the International Center for Gaming Regulation at the University of Nevada in Las Vegas.

Source: USAOnlineCasino