Yesterday, the National Indian Gaming Commission (NIGC) revealed very positive results for the Tribal communities across the United States. The NIGC FY 2022 Gross Gaming Revenue Report showed information on year-over-year trends, comparisons, and aggregate details on how NIGC’s eight regions have fared.
Approaching to the 35th anniversary of the Indian Gaming Regulatory Act’s (IGRA) passage, in FY 2022, gaming revenues totaled USD 40.9 billion, an increase of 18% over pre-pandemic revenue (FY 2019) and nearly 5% advance compared to FY 2021. This is the highest GGR ever recorded. Showing a strong upward trend overall, seven of the eight NIGC administrative regions experienced a FY 2022 revenue expansion compared to FY 2021. The GGR figures identified in the report are an aggregate of gaming revenues collected from the audited financial statements of 519 gaming operations, made up of 244 Tribes across 29 states.
This record is not a surprise. As following chart illustrates, the Indian gaming industry has been showing steady year-over-year growth for the past 20 years.
Moreover, this map indicates the geographic location of NIGC’s eight regions, their respective GGR share in FY 2022, and the number of gaming operations in each region.
Seven of NIGC’s 8 regions showed an increase over FY 2021. The table also expresses the comparison of the overall FY 2022 GGR versus FY 2021 GGR. The overall FY 2022 GGR was USD 1.9 billion, about 5% higher than the historic FY 2021 GGR of USD 39 billion, as operations emerged from pandemic operation. It is important to note the year-over-year GGR change by region should not be used as a direct indicator of the local economy in any specific region. Many other factors could have an impact on the GGR at the regional level, such as new gaming operations, expansions or renovations to existing operations, temporary or permanent closures, regulatory changes, or changes in an operation’s fiscal year.
When reviewing FY 2022 GGR by Revenue Range insights, we can see that approximately 8% of gaming operations reported more than USD 250 million of GGR in FY 2022, and their aggregate revenues made up more than half (51%) of the total GGR. In comparison, 55% of tribal gaming facilities reported less than USD 25 million in revenues and this group represents about 5% of the total GGR share. The percentages of operations which make-up the respective ranges have been relatively consistent over the past years.
The National Indian Gaming Commission was created in 1988 with the passage of the Indian Gaming Regulatory Act (IGRA), enacted to support and promote tribal economic development, self-sufficiency, and strong tribal governments through the operation of gaming on Indian lands.
About recent economic achievement, E. Sequoyah Simermeyer, Chairman of the NIGC, commented: “This year’s historic revenue reflects the resiliency of many tribal gaming operations and how tribal gaming continues to rebound and remain strong. Tribal governments and the operations they license continue to explore new and innovative ways to expand and deliver world-class experiences to cultivate sustainable economies. Across Indian country, tribes pursue economic sustainability through gaming by relying on the robust regulatory reputation for which Indian gaming is well known, and made better when supported by efficient and effective measures.”
Regarding the future, he added: “The industry needs to be acutely aware of the increasing complexity of cyber threats as Indian gaming grows and adapts to sports betting, virtual wallets, and mobile gaming. Though these evolving complexities will likely be with us for the foreseeable future, the regulatory community can continue its role in ensuring confidence in Tribes’ vigilance for safeguarding their operations. As changing technology creates potential new opportunities for well-regulated play, NIGC stands ready to provide technical assistance and regulatory tools necessary to prioritize compliance, and to protect and grow the valuable resources gaming represents to many communities.”