WASHINGTON, July 23, 2013 /PRNewswire/ -- Today Tracie Stevens, Chairwoman of the National Indian Gaming Commission, released data showing revenues generated by the Indian gaming industry in 2012 totaled $27.9 billion. These revenues are the highest ever and this year marks the third consecutive year of growth of gross gaming revenues (GGR) since the recession began in 2008.
"In 2012, the Indian gaming industry saw its largest gross gaming revenues ever," said Tracie Stevens, Chairwoman of the NIGC. "For those who judge casino spending as an indicator of increased discretionary spending and economic recovery, 2012 revenues certainly display economic encouragement."
The 2012 GGR of $27.9 billion represents 2.7 percent growth in revenue from the 2011 GGR of $27.2 billion. The overall growth of GGR in 2012 is attributable to 66 percent of the Indian gaming operations, which reported an increase in gaming revenues. Of the operations that reported an increase in revenue, approximately 44 percent showed moderate growth of less than 10 percent.
"Regulation has played a key role in the growth of the Indian gaming industry," said Associate Commissioner Dan Little. "Over the last three years our regulatory review has provided much needed reform to meet the needs of the changing industry and provide flexibility and consistency for tribes and tribal regulators."
The associated table shows the revenue trends over the past 10 years. Since 2010, the Indian gaming industry experienced approximately 3 percent annual growth—reaching its largest GGR this year.
Growth attributed to small and moderate gaming operations
Small and moderate gaming operations make up 56 percent of Indian gaming. Many Indian tribes use gaming revenues to fund economic development activities on reservations and more effective provision of tribal government services, including health services, early education programs and language and cultural preservation activities.
In 2012, 98 Indian gaming operations reported gaming revenue between $10 million and $25 million, 70 Indian gaming operations reported gaming revenue between $3 million and $10 million and 69 Indian gaming operations reported gaming revenue less than $3 million.
"These numbers illustrate that the majority of tribal gaming operations are small to mid-size," said Stevens. "The industry is driven by the demographics of each area. Most tribal gaming operations are in rural parts of the country where jobs are greatly needed for both natives and non-natives alike."
All regions show growth in revenues
The associated map illustrates the seven NIGC regions across the country. Continuing the trend that began in 2011, all seven regions experienced growth in 2012. The largest increase in GGR of 5.1 percent or $233 million occurred within the St. Paul Region, which consists of 120 gaming operations across nine Great Plains states. The Tulsa Region, which consists of 64 gaming operations in Kansas and eastern Oklahoma, had the largest percentage increase from 2011--6.6 percent or $125 million.
The NIGC's GGR release provides the most comprehensive look at the revenues of the Indian gaming industry each year. GGR also provides a regional view of revenues figures for the more than 420 gaming establishments, associated with nearly 240 tribes across 28 states.
The 2012 GGR is calculated based on independently audited financial statements received by the NIGC through June 20, 2013. Financial statements are submitted by Indian gaming operations in accordance with the Indian Gaming Regulatory Act. Gaming revenues represent the net win from gaming activities, which is the difference between gaming receipts and payouts.
The charts and graphics included in this release, as well as additional data, can be found at www.nigc.gov/media.
The National Indian Gaming Commission is committed to the prompt and efficient regulation of the Indian gaming industry, which spans more than 420 gaming establishments, associated with nearly 240 tribes across 28 states. The Commission's dedication to compliance with the Indian Gaming Regulatory Act ensures the integrity of the $27 billion Indian gaming industry. For more information, visit www.nigc.gov.
The National Indian Gaming Commission is an independent regulatory agency established within the Department of the Interior pursuant to the Indian Gaming Regulatory Act of 1988.
SOURCE National Indian Gaming Commission