The Native American gaming industry demonstrated remarkable resilience and adaptability throughout 2023, posting a record-breaking Gross Gaming Revenue (GGR) of $41.91 billion. This figure represents a 2.4%, or $967.6 million, increase compared to the previous year’s total of $40.94 billion, according to the National Indian Gaming Commission (NIGC).
The comprehensive data covers Native American gaming operations across eight regions: Portland, Sacramento, Phoenix, St. Paul, Rapid City, Tulsa, Oklahoma City, and Washington DC. Collectively, these regions represent 527 tribally owned, operated, or licensed establishments spread across 29 states. Each of these regions reported year-on-year growth in 2023, underscoring the sector’s widespread success.
Sacramento emerged as the primary source of revenue, contributing an impressive $11.97 billion—an increase of 1.8% from 2022’s total. The Sacramento region has a jurisdiction that encompasses California and northern Nevada, marking it as a significant hub for the industry.
Washington DC followed closely, with its gaming operations generating $9.19 billion, reflecting a 2.4% increase. The Native American gaming businesses in this region span several states, including New York, North Carolina, Florida, Alabama, Mississippi, and Louisiana. St. Paul, encompassing states like Michigan, Indiana, Minnesota, Wisconsin, Iowa, and Nebraska, saw their revenue rise by 2.8% to $5.09 billion.
However, the region boasting the highest growth rate in 2023 was Phoenix. Revenue in this area surged by 5.5%, reaching $2.93 billion. Covering southern Nevada, Arizona, New Mexico, and Colorado, the Phoenix region’s impressive performance highlights the expanding influence of Native American gaming enterprises.
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These figures stem from reports submitted by 245 tribes across the 29 states, detailing the financial activities of both class II and class III gaming operations on tribal lands for each fiscal year. This rigorous data collection process ensures transparency and provides a clear picture of the industry’s health and growth trajectory.
The year 2023 not only broke records but also marked the third consecutive year of GGR growth for the NIGC. Notably, if it hadn’t been for the downturn in 2020 due to the COVID-19 pandemic, revenues would have shown an uninterrupted upward trend since 2010. The revenue has now more than doubled since 2004’s total of $18.5 billion, illustrating the significant progress over nearly two decades.
“The strong GGR results this year are a testament to the robust regulatory framework and the diversity of tribal gaming enterprises,” stated Sharon Avery, the acting chair of the NIGC. “Tribal gaming operators and regulators have once again shown that their ingenuity and tenacity drive growth, even in an ever-evolving gaming landscape. This steadfastness will ensure that tribal gaming remains a cornerstone for continued economic sustainability within tribal communities.”
Jeannie Hovland, the NIGC vice chair, echoed these sentiments, highlighting the success brought about by the Indian Gaming Regulatory Act (IGRA). “I extend my congratulations to the industry regulators, operators, and tribal leaders for another remarkable year. Their dedication in overcoming the challenges of an increasingly competitive market showcases the resilience of tribes and the benefits their gaming expertise brings to their nations as envisioned by IGRA.”
The NIGC emphasized that the revenue growth not only affirms the viability of tribal gaming operations but also reflects their adaptability. The industry continues to evolve with technological advancements and shifting consumer preferences. “Tribal governments and their licensed operations are continuously exploring new and innovative ways to expand and deliver world-class experiences, fostering sustainable economies,” the NIGC noted.
In a significant development, the reach of tribal gaming has extended into Las Vegas. The Seminole Tribe became the first Native American operator on The Strip by acquiring The Mirage, which is set to be replaced with a Hard Rock property. This move signifies a growing influence and presence of tribal gaming enterprises in one of the world’s biggest gaming markets.
Furthermore, tribal influence in gaming expansion is expected to grow significantly, particularly in Florida. The recent decision by the U.S. Supreme Court to deny the writ of certiorari in the Florida sports betting case filed by West Flagler Associates (WFA) has implications for the industry. This ruling permits digital sports betting to remain operational in Florida, provided that any bet placed within the state is processed through a server located on tribal lands. Consequently, the Seminole Tribe launched its Hard Rock Bet platform in November 2023.
The Supreme Court’s decision potentially sets a precedent for other states with strong tribal gaming sectors such as California, Minnesota, and Oklahoma. Should these states seek to strike similar compacts as Florida, it could enhance the negotiating power of the tribes, further cementing their role in the evolving landscape of gaming in the United States.
