Tribal Gaming Important Economic Engine

The gaming industry definitely has an impact on the US economy. This post will focus particular attention on the impact of tribal gaming. Gaming is generally on a for-profit basis with exceptions for certain charitable organizations, e.g. church bingo. One could claim that the church is definitely a for-profit enterprise, but I'll leave that argument aside.

Tribal gaming proceeds are applied to improving the general welfare of the tribes. Typical areas of focus are law enforcement, health care, education, water and housing. Specific guidelines are outlined in federal law, the Indian Gaming Regulatory Act.

According to the National Indian Gaming Association 2008 economic impact report, tribes:

• generated almost $26 billion in gross gaming revenue
• generated over $3 billion in related hospitality revenue (lodging, F&B, etc.)

which in addition to helping the economic and quality of life of the tribes:

• $150 million to local charities
• $100 million to local governments
• $2.5 billion to state governments
• $8 billion to the federal government

Oh, and not to be underestimated, tribal gaming directly and indirectly support 636,000 jobs nationwide. To put in perspective, that number of jobs is comparable to the total employment of the US Postal Service.

Some states are particularly impacted by Indian Gaming. A recent editor's letter in Casino Journal magazine reported that the two major tribal casinos in Connecticut, Foxwoods and Mohegan Sun are responsible for 12% of the entire state's job growth since 1992! Also, just these two Indian gaming properties are contributing 60% of what the state of Connecticut receives in corporate tax revenue. Would you think that just two tribal casinos would have that large of an economic impact to a state? Huge impact.

In addition to providing revenues to charities, local, state and federal governments, tribal gaming provides revenues to help tribes help themselves develop after centuries of oppression and neglect. A true win-win.

References:

IndianGaming.org (2009). The Economics of Indian Gaming. Retrieved September 14, 2009, from: http://www.indiangaming.org/info/pr/press-releases-2009/NIGA_08_Econ_Impact_Report.pdf.

Rutherford, J. (2009, September), A sharing problem, Casino Journal, 4.