Indian gaming revenue grows in '08, despite economic downturn

American Indian gaming on a nationwide basis experienced its slowest annual growth in its reported history in 2008, but the industry still grew, and gaming revenue at casinos in South Dakota grew by 3.4 percent.

The numbers are from the new edition of the “Indian Gaming Industry Report” by Alan Meister, an economist with Nathan Associates Inc. The report was released today.

The report blamed the slowdown on the economy.

“The economic downturn is even taking its toll on Indian gaming, which has historically performed better than most other segments of the gaming industry,” the report’s executive summary says.

Nationwide, the $26.8 billion in Indian gaming revenue in calendar year 2008 was a 1.5 percent increase over the $26.4 billion generated in calendar year 2007. Furthermore, the $3.2 billion in non-gaming revenue at Indian gaming facilities in calendar year 2008 was a 3 percent increase from the $3.1 billion in calendar year 2007.

In South Dakota, gaming revenue at Indian casinos grew from $97.1 million in 2007 to $100.5 million in 2008. The 3.4 percent growth in gaming revenue was matched by an identical rate of growth in non-gaming revenue, which increased from $13.1 million to $13.5 million.

“This growth came about as the state economy remained robust amidst the downward nationwide economic trend,” the report said in its section about South Dakota.

Nine South Dakota tribes operate 12 casinos in the state in 2008 with 2,204 gaming machines and 68 table games, the report said. The state ranked 18th nationally in the amount of gaming revenue generated by Indian casinos, and the rate of growth in South Dakota’s Indian gaming industry ranked 12th nationally.

The positive growth in South Dakota in 2008 reversed a recent negative trend. The state’s rate of Indian-gaming growth was negative 3 percent in 2007 and negative 0.3 percent in 2006.

The report identified one ongoing gaming development in South Dakota: The Cheyenne River Sioux Tribe plans to build a resort casino that would open northwest of Pierre.

The report also says that non-Indian, “commercial casinos” in South Dakota grew their revenue by 4.1 percent in 2008 to $102.3 million.

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