Tribal gambling revenue continues rapid growth

THE RISE AND RISE OF INDIAN GAMING

The National Indian Gaming Commission (NIGC), an independent federal regulatory agency of the United States, this week announced that net revenues from Indian gaming rose 11% in 2006. This means that in the five years since 2001 tribal gaming revenue has almost doubled, from US$12.8 billion to US$25.1 billion. According to NIGC chairman Phil Hogen, "The continued growth is eye-opening considering the tribal gaming industry is still relatively young.”

The Mohegan Sun in Connecticut is one of the largest casinos in the world. Opened in 1996 the resort is now undergoing Project Horizon, a US$740 million development that includes a 64,000 sq ft Casino of the Wind that is scheduled to open in Spring 2008 and a new 1,000-room hotel tower. The Asian gaming addition, Casino of the Earth opens this summer. In Pennsylvania the recently opened commercial operation Mohegan Sun at Pocono Downs is already ahead of predictions for machine revenue. The Gaming Board had estimated a win per day of US$180 for each machine; Mohegan Sun officials had estimated US$230. The May figure was actually US434, although this is expected to decrease when more machines become operative in the state.

One of the original developers of the Mohegan Sun in Connecticut was Sol Kerzner. With other equally successful casino resort developments, such as Sun City in South Africa and Paradise Island in The Bahamas, Mr Kerzner is now reportedly interested in a possible venture with the Mashpee Wampanoag tribe in Massachusetts. Having finally been given federal recognition as a tribe after years of campaigning, the Mashpee Wampanoag tribe is already planning a casino project as Massachusetts considers legislation for casino gambling.

Nevada casinos had gambling revenue of US$12.62 billion in 2006 although non-gambling revenue added another US$11.46 billion. The tribal gaming industry is seeing record growth, and there are now 387 operations in 28 states. Few are the size of the huge Mohegan Sun or Foxwoods casinos in Connecticut but the north-east of the United States is a rich market for casino operators, as is being seen already in the new Pennsylvania slot machine market. A push for expansion in Indian gaming is evident in states such as California and Florida.

The NIGC report states that Region V, which includes Kansas, Oklahoma and Texas, saw the biggest increase in 2006 gambling revenue – up 22% to US$2.1 billion. Paul Hogen commented, “The public’s continued good will is a necessary element to continued growth which is why the role of the NIGC must be reaffirmed.” The Commissioners - NIGC Chairman and two others - serve full-time for a 3-year term. No more than two can be from the same political party and at least two must be enrolled members of a federally recognised tribe. (E-06.06.07)

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