Indian gaming reports $27.8 billion revenue for FY 2020, decreases nearly 20%

The National Indian Gaming Commission (NIGC) released Tuesday, August 17 figures for the fiscal year 2020, with revenues totaling $27.8 billion, a decrease of 19.5% over fiscal year 2019.

The negative results come as a result of the Covid-19 pandemic impact in the gaming industry, with Chairman E. Sequoyah Simermeyer describing the gross gaming revenue decrease as “expected.”

Throughout the prior year, most gaming operation began closing in March 2020, with the amount of time Indian casinos remained closed depending on each governing body of the casinos. As of 2021, nearly 30 gaming operations have yet to reopen, although about 95% of Indian gaming operations have reopened.

The 2020 decrease puts an end to the steady year-over-year growth rate that the Indian gaming industry has experienced over the last 10 years and marks the first big Indian-gaming drop since 2000. In comparison, fiscal-year 2019 reported a record $34.6 billion revenue for tribal gaming.

Unlike previous years, the NIGC administrative regions experienced a FY 2020 decline of more than 13% in gross gaming revenue. The Rapid City Region experienced the largest decrease, totaling 36.6%; while the Sacramento Region saw the least loss, with a 13.2% decrease.

Despite the negative picture in terms of revenue resulting from the pandemic, Simermeyer remarks that tribes were on the forefront of creating standards and developing new safety protocols and sharing community resources. “I foresee this decrease as only a temporary setback for Indian gaming,” described the chairman.

The GGR figure is an aggregate of revenue from 524 independently audited financial statements of 248 federally recognized Tribes across 19 states, and the GGR for an operation is based on the amount wagered minus winnings returned to players.

"Tribal gaming has shown resilience and commitment, and continues to develop new roads to economic stability. I look forward to seeing Indian gaming continue to lead the way in efforts to reduce the economic impact of the Covid-19 pandemic,” further added NIGC Vice Chair Jeannie Hovland.

Despite the shortfalls faced, the Indian gaming industry believes investments made prior and during the pandemic will provide sustainable recovery for the following year and what is left of 2021.

Among them is the deal in May reached by the San Manuel Band of Indians in Southern California with Red Rock Resorts to become the first Native American tribe to own a Las Vegas casino with their purchase of the Palms Resort for $650 million. Furthermore, Connecticut’s Mohegans became the first tribe to operate a casino in Nevada by taking over the newly opened Mohegan Sun Casino at Virgin Hotels Las Vegas, previously operates as the Hard Rock Hotel-Casino.

“This invaluable investment can provide hope for the industry’s strong return and an important stability for a well-regulated industry and is important to tribal communities that use Indian gaming to strengthen tribal governments and economies,” said Simermeyer.

Oklahoma’s Indian gaming industry, which has seen its state fiscal year end June 30, has already shown a positive rebound. State revenues from gaming increased more than 35% between 2020 and 2021, and Oklahoma’s Indian gaming paid a record $167 million to state.