RSS Feed

Tech Support

Wipfli LLP has released its 26th Annual Indian Games Cost Report for 2024, which sheds light on the state of tribal games finances across the United States. Tribal casinos in 18 states generated a record $41.9 billion in revenue in 2023, according to the report. Despite the impressive numbers, tribal games operations face challenges, with returns falling from 30% to 26% in 2022.

Grant Eve, the tribal gaming and government industry leader at Wipley, highlighted the resilience of the tribal gaming industry in the face of economic pressure. "The data in this year's report highlights the resilience of the tribal gaming industry," Eve says. "Yields have narrowed, but overall financial health remains robust. It is important for casino operators to leverage these insights to strategically navigate the economic challenges ahead and continue to deliver value to tribal communities."

Key financial highlights of 2024 report

The Wipley report provides valuable insights into the operations of 132 tribal casinos across 18 U.S. states. Despite the narrowed returns, several important trends stood out:

Source of revenue: Slot machines continued to serve as the primary source of revenue for tribal casinos. Meanwhile, marketing, promotions, and wages were among the biggest costs.
Expand Sports Betting: Sports betting has been introduced in more casinos, but it has yet to be a big source of revenue. Most sports betting revenue comes from online platforms, with only a small percentage of people betting directly on retail sportsbooks.
REDUCED YIELD: Net income fell for the second consecutive year to 26% in 2023. That's down from 30% in 2022 and 36% in 2021, indicating growing pressure on profitability across the industry.
Change in performance by region

One of the notable findings in the 2024 report was the gap in performance by region. The Oklahoma region led the way with the highest return on assets, signaling strong financial performance compared to other regions. These differences highlight the unique challenges and opportunities each region faces as they continue to adapt to economic fluctuations.

The sports betting industry posted $119.84 billion in bets in 2023, but retail sports betting at tribal casinos was only a fraction of that. Most of the transactions were made via online sportsbooks, with retail sports betting handles accounting for less than 10% of the total in many states. In New York, for example, face-to-face sports betting accounted for just 0.3% of all New York state handles in July.

Many experts argue that the growth of online gambling is affecting the profitability of offline casinos, including tribal gaming operations. Fewer consumers are moving to offline locations as more consumers opt to gamble online at home, which is likely to also affect traditional revenue streams such as slot machines and table games. Supporters of iGaming, however, argue that the expansion of its online platform helps attract new customers to offline casinos, and expect sales of slot machines and table games to rise by 3.3% in 2023.

Tribal casino expansion after 2024

In addition to analyzing financial performance, the Wipley report highlights the continued growth of tribal games in the United States. Several new tribal casinos are currently under construction or in the planning phase, ensuring continued expansion of the industry.

For example, the Muscogee Nation will open its Coweta Casino Hotel in Oklahoma in 2026, while the Hochunk Nation is working on a $450 million casino project in Beloit, Wisconsin, which is slated to open in 2026. Similarly, in California, new casinos will soon be added, such as the Timbisha Shoshone tribe's casino in Inyorkern and the Hard Rock Casino Tejon, which is scheduled to open at the end of 2025.

The developments reflect the growing presence of tribal games, which currently have more than 500 casinos across the United States, according to the National Indian Games Commission.