Native American casinos always have fallen short of non-Native American owned casinos, but that may change in the near future. Native American casinos have shown strong growth since 1988. The only time they’ve fallen in that time period was in 2009, probably because of the recession. Even with the fall, it was only a fall of one percent, and the casinos will probably grow again now that the economy is slowly recovering.
Native American casinos experienced 96 percent of the profit that other casinos take in. Native American casinos have expanded rapidly in recent years, growing from earning 89 percent of casino revenue to 96 percent in just one year. Native American-run casinos are also good for tax revenue, as they are estimated to bring in a whopping total of $10.5 billion in revenue for both local, state, and federal governments. These casinos also bring in 682,000 jobs, paying out these individuals $28 billion in wages.
Native American casinos earn the most for California, brining the state almost $7 billion worth of revenue. The four states under California (Oklahoma, Connecticut, Florida, Washington) are all high-rollers for the industry, bringing in just over 60 percent of all Native American resort revenue. “Racinos,” which are casinos that also offer horse racing, are also showing a significant growth.
History of the Native American Gaming Industry
Native American tribes have greater sovereignty and control over their businesses, which is why it’s easier for them to open casinos outside of state regulations. Native American gaming began as a result of a Supreme Court decision in the 1970′s that stated that governments could not tax or regulate happenings at an Indian reservation. The Indian Gaming Regulatory Act, passed in 1988, did allow governments to enforce some regulations on Native American-run casinos. There are an estimated 400 Native American gaming establishments around the United States currently in operation. One of the largest Native American casinos in the United States is the Pechanga Resort and Casino in California. The Foxwoods Resort Casino is another notably large casino, which is located in Connecticut and has been operating since 1992.