The tribal gaming industry achieved a record $41.9 billion in revenue in 2023, as revealed in the 26th Annual Indian Gaming Cost of Doing Business report. Published late last month, the report features data from 132 tribal casinos across 18 US states.
Despite setting a new revenue record, profit margins in the tribal gaming industry saw a slight decline, dropping from 30% in 2022 to 26% in 2023. The report, conducted by business and consulting.
“The data in this year’s report underscores the resilience of the tribal gaming industry,” Grant Eve, Wipfli’s leader for the tribal gaming and government industry, said in a press release. “While profit margins have narrowed, the overall financial health remains strong. It’s crucial for casino operators to use these insights to strategically navigate the economic challenges ahead and continue delivering value to their tribal communities.”
Tribal gaming key insights
Key findings from the report include:
- Slot machines remain the top revenue generator for gaming tribes.
- Major expenditures include marketing, promotions, and wages.
- While sports betting is growing, it has yet to become a significant revenue driver for tribal casinos compared to traditional gaming.
This marks the second consecutive year of declining profit margins, which dropped from 36% in 2021 to 30% in 2022, and now to 26% in 2023.
No surprise sports betting isn’t yet making a dent
The legal sports betting industry hit a record $119.84bn in wagers in 2023, a 27.5% increase from 2022, according to the American Gaming Association. However, the vast majority of these bets were placed through online sportsbooks.
Data from states that separate retail and online sports betting revenue suggest that only about 10% of bets are placed at physical sportsbooks, with some states seeing figures as low as 1%. In July, New York's retail handle accounted for just 0.3% of its total sports betting handle.
