TAX EXEMPT STATEMENT
The Indian Gaming Association is a tax exempt corporation under Internal Revenue Code section 501(c)(6). Although ruled tax exempt, this does not make the Indian Gaming Association a “charity” and thus contributions to the organization are not always deductible by the donor as a charitable contribution for federal Income Tax purposes. The Indian Gaming Association was founded in 1985 and incorporated in the District of Columbia in 1993.
MISSION STATEMENT
The mission of the Indian Gaming Association is to protect and preserve the general welfare of the Tribes striving for self-sufficiency through gaming enterprises in Indian Country. To fulfill its mission, We work with the federal government and Congress to develop sound policies and practices and to provide technical assistance and advocacy on gaming related issues. In addition, We seeks to maintain and protect Indian sovereign governmental authority in Indian Country.
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ANNUAL REPORT 2023
Chairman’s Report
4
Vice Chairman’s Report
8
Treasurer’s Report
10
Secretary’s Report
12
Executive Director’s Report
14
Board of Directors 2023
16
Staff Matrix 2023
17
Nationwide Impacts of Indian Gaming
19
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CHAIRMAN’S REPORT ERNEST L. STEVENS, JR. Oneida Nation of Wisconsin
O ctober 17, 2023, will mark the 35th anniversary of the Indian Gaming Regulatory Act. However, more than three decades after its enactment, the history and purpose of IGRA is still too often misunderstood. IGRA is not a federal program. It did not invent Indian gaming. Most importantly, IGRA did not freeze Indian gaming in time to the date of its enactment on October 17, 1988. In fact, IGRA has fostered the steady evolution of Indian gaming over the past few decades. The true history of Indian gaming stems from President Nixon’s 1970 address to Congress, which ushered in the federal policy supporting Tribal government self- determination. A handful of Tribes embraced this policy, opening the first modern-day Indian gaming operations that worked to generate revenue for Tribal government programs and services. More than a decade later, the U.S. Supreme Court, in California v. Cabazon Band of Mission Indians, rejected legal challenges to Indian gaming lodged by state governments and some commercial gaming interests. The Court upheld the inherent sovereign right of Tribal governments to conduct gaming free of state interference. In 1988, states and commercial gaming interests enhanced lobbying efforts, pressing Congress to reverse the Tribe’s
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victory in Cabazon. Over the objections of many Tribal Governments, Congress enacted IGRA on October 17, 1988, as a compromise that sought to balance tribal, federal, and state government interests. While IGRA does require Tribes to negotiate agreements or “compacts” with state governments to conduct Class III gaming, the Act is grounded in respect for Tribal sovereignty and the status of Indian tribes as separate governments. IGRA’s primary purpose is “promoting tribal economic development, tribal self-sufficiency, and strong tribal governments.” The Act is far from perfect, but Tribal governments have made it work. Indian gaming today remains the most successful economic development tool employed by Tribal governments, providing them a consistent and stable source of revenue that Tribes have used to rebuild their communities. Indian gaming is first and foremost about jobs. Nationwide, Indian gaming is a proven job creator, delivering over 700,000 American jobs in 2022 alone. Jobs generated by Indian gaming provide many Native Americans with their first opportunity to work at home on the reservation. Over the years, Native citizens have returned to reservations, drawn by increased employment opportunities and the many improvements that have resulted from resources provided by Indian gaming. Our industry has begun to revitalize reservations nationwide. Tribal governments have used gaming revenues to improve housing, health care, education, infrastructure, and so much more. Because of Indian gaming, Indian lands are again becoming livable homelands, as promised in hundreds of treaties. Like any industry, Indian gaming has evolved since the early days in the 1970s. In 1984, eighty (80) Tribes were engaged in gaming with estimated revenues in the tens of millions. At the time, most Tribal gaming enterprises took place in temporary pop-up buildings or local tribal gyms.
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From these humble means, Indian gaming has responsibly grown to provide a steady source of governmental revenue for Indian tribes nationwide. In 2021, 243 Tribal governments operated 510 gaming facilities in 29 states, generating $39 billion in gross revenue. Indian gaming operations and the types of games offered, have also undergone continuous change since 1988. As noted above, IGRA has fostered that evolution. The Class II Indian gaming industry stood at the vanguard of these changes early on. Using IGRA’s text and its legislative history, Tribes used advancing technology to broaden the types of Class II games employed in their operations. Tribes began to use electronic Class II machines that increased both the speed of the games and the participation levels. However, for more than a decade, from the mid-1990s throughout the 2000s, the National Indian Gaming Commission and the Justice Department challenged this use of advanced technology. The agencies sought to use IGRA as a barrier to the evolution of Indian gaming, essentially seeking to freeze the types of games Tribal governments could use to those offered in 1988. The federal courts uniformly rejected these attempts to freeze Indian gaming to the games used in 1988. Most of the court decisions cited the congressional report to IGRA. That Report acknowledged that Congress “rejects any inference that tribes should restrict Class II games to existing game sizes, levels of participation, or current technology. The Committee intends that tribes be given the opportunity to take advantage of modern methods of conducting Class II games and the language regarding technology is designed to provide maximum flexibility.” Like Indian gaming, the national gaming industry has considerably changed since IGRA’s enactment. In 1988, few non-Indian legal gaming operations existed outside of Nevada or Atlantic City, New Jersey. In the 35 years since, twenty (20) additional states have legalized land based commercial gaming within their borders. The most sweeping change in the national gaming landscape has taken place in just the past five years. In May of 2018, the Supreme Court in Murphy v. National Collegiate Athletic Association struck down the Professional and Amateur Sports Protection Act – the federal law that prohibited all forms of sports betting in the U.S. outside of a handful of grandfathered exceptions.
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The newly legalized sports betting industry has brought the online or mobile gaming industry with it. In the nearly five years since Murphy, at least 35 states and the District of Columbia have legalized sports betting, with at least 20 offering some form of online sports wagering. The Indian gaming industry is likewise evolving to address this changing landscape. In recent years, dozens of Tribal Governments have added sports wagering to Indian gaming operations. The issue of whether Tribes can operate online sports betting is a topic of ongoing debate. Some existing online gaming operators look to freeze Indian gaming in time to the date of IGRA’s enactment in their attempt to prevent Tribal governments from participating in this emerging market. These arguments yet again ignore that Congress intended IGRA to foster the evolution of Indian gaming, providing Tribes the maximum flexibly to take advantage of modern technology. They also ignore the longstanding fact that Indian gaming has never been strictly limited to Indian lands. For example, off-track betting has always been an integral part of Indian gaming. While the races may take place off Indian lands, the wagers are accepted at the Indian gaming operation. It is not a stretch to likewise recognize that Tribes can work with states through the compacting process to clarify that Tribal gaming operations can accept mobile wagers from outside of Indian lands where the server is located on Indian lands. This view reflects this modern understanding of how to regulate online gaming. Multiple states have enacted laws that deem a bet to have occurred at the location of the servers, regardless of where the player is physically located in the state. Tribal governments are leading this debate, empowered in part by IGRA and the compacts that Tribes have carefully negotiated. So as the Indian Gaming Regulatory Act reaches another milestone, we acknowledge the Act’s limitations but also embrace the benefits embedded in IGRA. This forward-looking law, at its core, is grounded in respect for Tribal sovereignty that provides the flexibility to empower Tribal government gaming operations with the ability to grow with modern advances in the industry.
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VICE-CHAIRMAN’S REPORT DAVID Z BEAN Puyallup Tribe of Indians
W elcome to San Diego and thank you for attending this year’s Conference and Tradeshow. It is hard to believe it has been four years since the Association was last in San Diego. During this challenging timeframe, I have been elected and re-elected as your Vice-Chairman of the Indian Gaming Association. I am honored and humbled by your faith in electing me as Vice-Chairman, and I have done my best to represent Indian Country within the Association and advocate on your behalf at Capitol Hill. I feel incredibly blessed and thankful to continue working alongside so many strong Tribal Leaders, IGA Board Members, and our hard-working and talented team of IGA staff protecting Tribal Sovereignty and Indian Gaming. We began this year with a new Congress and new challenges with a split in Government. It has been many election cycles since Indian Country has confronted a split Congress, with Republicans holding the House and Democrats holding the Senate. With new political leadership in Washington D.C. and strong leadership at the Federal Agencies (including Interior Secretary Deb Haaland of Laguna Pueblo), the Association will remain active on many policy fronts, both legislative and regulatory. As the Association continues to build on its successes during the pandemic, when we secured over $30 billion in direct Covid aid to Tribal Governments, we face new challenges at the Supreme Court and from Commercial Gaming interests. The Association is in a strong position to continue advocating on behalf of Indian Country, and we will continue to channel previous generations of Indian warriors who fought on behalf of Tribal Governments to
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keep the dreams of their people alive for generations to come. Our messaging over the years has resulted in a bi-partisan understanding that Tribal Sovereignty means Tribal Governments have jurisdiction over our lands and people without exception. In my home State of Washington, some of these jurisdictional battles played out over water, fishing, and hunting rights. While the State did not always respect Tribes’ viewpoint on Sovereignty, years of hard work and strong wills resulted in conditions that suited both of our jurisdictions. However, with the Supreme Court’s sudden reversal of precedent in the Castro-Huerta opinion, Tribes are facing jurisdictional challenges from the Federal Government itself, and this has opened up new lines of attack from commercial gaming against IGRA and to attacks on ICWA. The Association’s outreach to Congress remains strong and builds upon the new methods of communication started during the pandemic. The Biden Administration ensured Indian Country was included in the Infrastructure Investment and Jobs Act. Congress and the President allocated over $11 billion for Indian Country to improve their transportation systems, repair water systems, expand broadband access, and promote Tribal economic self-sufficiency. We must now again turn to Congress and the Administration for help in addressing these devastating Supreme Court rulings and the attacks on Tribal Sovereignty they are generating. Indian Country must remain united behind our core key principles: protecting tribal sovereignty and fostering economic activity on the reservation. This, in turn, will provide for the next seven generations of our Indian communities. I want to thank our Member Tribes for your support over the past two years. We simply could not have achieved so much for Indian Country without your support. I look forward to continuing my work with the IGA Board of Directors, Tribal and Associate Members, and all of Indian Country in this pivotal non-election year. My message as Vice- Chairman is the same since my first term: “Stay in motion…Forward Motion.” I pledge to continue to work together to protect Tribal Sovereignty, Indian Gaming, and all Tribal industries for the betterment of our generations to come. “Together” Indian Country has proven we can confront any challenge, even something as unexpected as challenges to the very existence of our Tribal Government jurisdiction. Always remember, “The bigger the challenge, the bigger the achievement, while always moving forward.”
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TREASURER’S REPORT ANDY EBONA Douglas Village
Dear Tribal Leaders, NIGA Member Tribes, and our Associate Members: W elcome to wonderful Southern California and a long-awaited return to San Diego. It is my honor and privilege to serve as your Treasurer for the newly re-branded “Indian Gaming Association” (IGA). As the Treasurer, my primary duty is to ensure the long-term fiscal health of the Association. Under the Association By-Laws, the Treasurer is responsible for the funds and security of all monies received by the Association. These monies are of course, generated from our Tribal Membership, the dedicated and hardworking Tribal Leaders for which the IGA exists. As an initial matter, I am pleased to report that our auditors at WIPFLi LLC, completed their 2022 IGA Audit and the Association received a “non-qualified” opinion from the auditors. This is a strong comeback from the negative impacts the Covid-19 pandemic had on all of Indian Country’s budgets. Due to the postponement of the 2020 Tradeshow scheduled for San Diego, the Association faced enormous budgetary constraints heading into the future. It is hard to believe that it has been four years since that fateful date. However, Association leadership responded and worked collaboratively to implement cost savings and budget cuts that ensured strong revenues through the worst of the pandemic and set the stage for FY 2022. Working with the Board of Directors, Executive Director, and our dedicated staff, we aggressively addressed the Pandemic induced budget challenges by instituting operational cuts and trimming our budget. As you will read in this year’s 2022 Audit Report, the Association not only met these challenges but will be in a strong financial position for fiscal year 2023. Working through the pandemic was truly a cooperative effort and I would be remiss in not acknowledging our long-time sponsors and Tribal partners. Through their continued support during the worst of the pandemic, they helped us maintain operations on behalf of Tribal Governments and Indian
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Gaming. Just as important, the Association was able to avoid layoffs and retain our loyal staff who continued to keep the Association active through new forms of communication and lobbying. For their continuing support, I want to thank the following Tribes and companies for their generous donations: Shakopee Mdewakanton Sioux Community Poarch Creek Band of Indians IGT Aristocrat Gaming Our Associate members are an important component of serving our Tribal Members and we hope to see more donations from companies that are benefitting from Indian Gaming. This year we are reforming our Associate Member Program to make it easier for companies to join the Association and provide a platform for companies to share the work they are doing in Indian Country. I pledge to continue our cooperative work on the Annual Budget, and will continue to coordinate with the Finance Committee, the Chairman, Executive Director, and our Membership, to protect the Association’s resources and ensure they are being used to meet Indian Country’s priorities. I am overwhelmed by the unity displayed by Indian Country during these trying times. Because of our collective advocacy, the Federal Government provided unprecedented support to Tribal Governments and our reservation economies during the Covid pandemic. As Treasurer, I want to build on this cooperation and respect for Tribal sovereignty as we work our way out of the pandemic challenges and prepare for new methods of doing business in Indian Country. As Treasurer, I owe it to our Tribal Membership to not only maintain the Association’s excellent credit rating, but to ensure the long-term fiscal health of the Association. It is an honor to have an elected role in an organization that is now of the most esteemed advocacy groups in Washington, D.C. I want to thank the Tlingit & Haida Indian community, especially the Douglas Village, for their support, in addition to all of our Member Tribal Nations for helping the Association achieve its goals. I look forward to meeting with you in San Diego and hearing your suggestions on how to continue to help all Tribal Nations pursue economic self-sufficiency, care for our people, and build a future for the generations to come. I wish you much success in 2023 and look forward to seeing you on the Tradeshow floor.
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SECRETARY’S REPORT PAULETTE JORDAN Coeur D’Alene
G reetings and welcome to all the Tribal Leaders attending our Tradeshow in San Diego, California, this year. It is a privilege to serve as the Executive Secretary of the Indian Gaming Association. In 2022, the Association continued our work on behalf of Indian Country, working with the Biden Administration and Congress to secure vital funding for infrastructure while also helping to secure advance appropriations for Indian Health Care. Securing the resources necessary for essential government functions is at the core of the Association’s mission but is also the very reason we fight so hard to preserve Tribal economic self-sufficiency. While the pandemic could have added to the obstacles faced by Tribal governments, the Association worked hard to adapt to new forms of advocacy. Fortunately, we did not have to do this alone, and through the cooperative work with our sister organizations such as NCAI, NCAIED, ATNI, and others, the Federal Government provided aid to Tribal governments as co- equal sovereigns with State governments for the first time in this Country’s history. Of course, our gaming revenues continued to be a vital source of income and provide an invaluable lifeline to our communities. It is incredible that in 2021, Tribal gaming revenues exploded to a record $39 billion, while Indian gaming preserved many of the 700,000 jobs during the pandemic.
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Coming out of the pandemic also helped to spur new investment and commitment to renewable energy initiatives in Indian Country. More and more tribal casinos used the slow down during the pandemic to re-assess their own carbon footprint and find new ways to save energy, which ultimately results in saving money and protecting our Mother Earth. Clean energy technology and development is one of the fastest-growing sectors in the U.S., and Indian Country is poised to be on the cutting edge of this technology given our locations, the diversity of our economies, and our cultural respect for nature. Under the Biden Administration, Tribal Governments will receive over $11 billion to build a new infrastructure for our Reservations which will propel the next generation into a new prosperous future. The Indian Gaming Association will continue to provide leadership and discussion on exploring new ways that Tribal Governments can preserve resources and the environment by committing to bring self-sustaining economic development to our reservations. I have long believed that Tribes are connected to this land in a spiritual sense and have a responsibility to protect and maintain access to our natural environment. Indian Country is a shining example of striking that balance between maintaining a vibrant industry and keeping our environment healthy for the continued use and enjoyment of generations to come. Again, it is my utmost privilege to serve as the Executive Secretary, and I appreciate the opportunity to represent our Member Tribes in this capacity. Coming to San Diego for the first time in four long years, I look forward to meeting with Tribal Leaders again and seeing what our great gaming industry has to offer. I am honored to serve in this position of responsibility with the support of our Tribal Membership. Without your dedication and steadfast support, we could not carry out our primary mission to defend Tribal Sovereignty! Thank you again for this honor, and I hope to meet you on the Tradeshow Floor!
Hnqwi’yqwi’yilgwes khwe sk’u’lshesh. (In humble service to you all.)
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EXECUTIVE DIRECTOR’S REPORT JASON GILES Muscogee (Creek) Nation
W elcome to beautiful Southern California! The Indian Gaming Association visits San Diego for the first time in four years and after two pandemic interrupted shows. We are excited to be in San Diego and look forward to our return in 2025. I want to thank the City of San Diego and everyone at the San Diego Convention Center for their constant attention and updates throughout these years. Their constant outreach proved invaluable to our planning and has helped make San Diego one of Indian Country’s favorite destinations. In last year’s report, I listed the challenges coming out of the pandemic and the uncertainty surrounding the gaming industry. These uncertainties weighed heavily on the Association, but we made adjustments, both financially and administratively, and our advocacy work remained strong. The overriding goal during these uncertain times was to protect our number one asset, our dedicated staff working on Indian Country’s behalf in Washington, D.C. Working with the Finance Committee and Treasurer, the Association embarked on aggressive cost-saving measures over the last two years. Due to these cost-saving measures and a successful off-cycle July Tradeshow in 2021, and a strong showing in Anaheim last year, the Indian Gaming Association starts 2023 in a great position. We also hope to finish the last part of our Headquarters expansion, a state of the art “Tribal Leaders’ Lounge” in the downstairs part of Association’s building. The Lounge will be available for all of Indian Country to come and relax between meetings on Capitol Hill, or bring visitors to a little slice of Indian Country in Washington, D.C. As we begin 2023, there is a lot of legislative and regulatory work ahead with regard to Tribal tax laws, gaming regulation, and protecting our Tribal Governments from a new wave of overbearing State demands on tribal gaming. I am proud to serve Indian Gaming in a role that helps to bring
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Indian Country’s voice to policy positions formulated in cooperation with all of our incredible Tribal organizations. Working with my peers in D.C. at NCAI, NACA, NIHB, NIEA, NAFOA and others is a humbling experience. Each organization brings a unique viewpoint to the table, but we have not lost focus on protecting Tribal Sovereignty and working to enhance Tribal self-determination. Indian Gaming has become a central part of many state and local economies, and the data indicates our industry is playing a strong role in the recovery in those areas. As you can see from this year’s Economic Impact Report, Tribal properties are generating several billion dollars in capital costs, operations and maintenance, security and surveillance, goods and services, etc. Tribes’ remaining revenue is reinvested into the tribal government to help pay for education, health care, police and fire protection, housing, water and sewer service, transportation, government infrastructure, and community development. Tribal Governments, like most governments, exist to provide a better standard of living for their citizens. We know that our Member Tribes are committed to rebuilding their Indian communities and creating sustainable economic models on the reservation. Indian Gaming revenues play a vital role in this endeavor, and together we will continue to share our economic development stories with America. Once Indian Country’s full story is told, all citizens will realize that the growth of Indian Gaming is truly another great American success story. Please stop by our offices anytime you are in Washington, D.C. - our doors are always open. We are proud to serve as your voice on Capitol Hill.
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BOARD OF DIRECTORS 2023
ALASKA DELEGATE Vacant EASTERN DELEGATE ROBERT MCGHEE Poarch Band of Creek Indians Alternates: MICHAEL CONNERS St. Regis Mohawk WILLIAM CANELLA Seneca Nation of Indians
CHAIRMAN ERNEST L. STEVENS, JR. Oneida Nation of Wisconsi
MIDWEST DELEGATE BRANDON STEVENS Oneida Nation of Wisconsin Alternate: MELANIE BENJAMIN Mille Lacs Band of Ojibwe ALEX WESAW Pokagon Band of Potawatomi NAVAJO DELEGATE DR. BUU NYGREN Navajo Nation
VICE-CHAIRMAN DAVID Z. BEAN Puyallup Tribe of Indians
TREASURER ANDY EBONA Douglas Village
EASTERN OKLAHOMA DELEGATE MATTHEW MORGAN Chickasaw Nation Alternates: BILLY FRIEND Wyandotte Nation JERRY LANKFORD Miami Tribe CRAIG HARPER Peoria Tribe GREAT PLAINS DELEGATE COLLETTE BROWN Spirit Lake Nation Alternates: BERNARDO RODRIGUEZ Oglala Sioux Tribe
NORTHWEST DELEGATE DENISE HARVEY Confederate Tribes of Grande Ronde A lternate: DAVID Z. BEAN Puyallup Tribe of Indians PAULETTE JORDAN Co eur D’Alene PACIFIC DELEGATE MARK MACARRO, CHAIRMAN Pechanga Band of Luiseño Indians Alternates: GARY SANTOS Tule River Tribe ROSEMARY MORILLLO Soboba Band of Luiseno Indians RICHARD JONES Table Mountian Rancheria
SECRETARY PAULETTE JORDAN Coeur D’Alen e
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STAFF
AT-LARGE MEMBERS GREG ABRAHAMSON Spokane Tribe RODNEY BUTLER, CHAIRMAN Mashantucket Pequot Tribal Nation STEPHEN LEWIS, GOVERNOR Gila River Indian Community KEVIN KILLER, PRESIDENT Oglala Sioux Tribe ASSOCIATE MEMBER DELEGATE (Non-Voting) RUSSELL WITT Director of Operations & Business Development - Class II
Jason Giles Executive Director Muscogee (Creek)
ROCKY MOUNTAIN DELEGATE JENNI WILDCAT No rthern Arapaho Tribe Alternates:
Dan ielle Her Many Horses Deputy Executive Director/General Counsel
LEE SPOONHUNTER N orthern Arapaho Tribe
Oglala Lakota Kevin Leecy Membership Director Bois Forte
SOUTHERN PLAINS DELEGATE LESTER RANDALL Kickapoo Tribe of Kansas Alternate: JOE POE, JR. Kiowa Tribe SOUTHWEST DELEGATE STUART PAISANO Pueblo of Sandia Alternate: IDAK FIERRO Pueblo of Pojoaque WESTERN DELEGATE VERLON JOSE Toh ono O’Odham Nation Alternates: PAUL RUSSELL Fort McDowell Yavapai Nation NED NORRIS To hono O’Odham Nation
Angelica Molina Business Manager Navajo (Dine’) Ma ria Ferguson Office Manager Ch elsea Blake Legislative Director Mim i Hoang Associate Membership Director Justice Ramos Receptionist Navajo (Dine’)
Ainsworth Game Technology CHRIS GEORGACAS President, CEO Goff Public
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THE NATIONWIDE ECONOMIC IMPACTS OF THE INDIAN GAMING INDUSTRY IN 2022
An Economic Analysis Report
FY 2021
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Contents
Economic Impact Summary
21 22 23 24
Background Introduction
Economic Impact Modeling Methodology Direct, Indirect and Included Multiplier Impact Overview
25
Revenues Output Impact Analysis Employment Gains
Areas of Employment Gains Federal, State & County Taxes Federal, State and County Tax Catagories Government Taxes Paid 2012 to 2022 Multiplier and Total Impact NAICS Sector Impacts Indian Gaming Wages Indian Gaming Operating Expeses Indian Gaming Capital Indian Gaming Transfer Payments Indian Gaming Overall Economic Output Economic Impact State Summaries Key Finding of State Summaries Ranked Industries by Output United States Private Employers
31
39
41 42
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Economic Impact Summary The following section presents a summary of the findings and conclusions from the study entitled, “The Nationwide Impacts of Indian Gaming,” An Economic Analysis Study for 2022, conducted and authored by Dupris Consulting Group, LLC. on behalf of the Indian Gaming Association (IGA).
• Wages paid to employees of the Indian Gaming industry amounted to $7,968,391,098 and employment resulting from Indian Gaming workers spending their disposable incomes, casino operations purchasing activities, capital expansion projects and transfer payment spending activities to Tribal governments generated another $29,021,044,193 in wages. In summary, Indian Gaming was responsible for generating $36,989,435,290 in direct and indirect wages throughout Indian Country, the states their casinos are located, and the United States. • The fiscal impacts to State and Federal Governments have been very strong. When including taxes paid and payments reduced, the Indian Gaming industry has had a positive impact on governments in the amount of $17,528,261,245.
DIRECT AND MULTIPLIER IMPACT • In 2022, the Indian Gaming Industry has generated significant economic activity which had an overall economic output of $101,968,064,775. • The Indian Gaming Industry, in 2022 directly transferred $20,954,467,009 to their Tribal owners for governmental program spending and investments, helping to meet gaps in federal funding for Indian programs. Since government spending is largely wages and employee benefits, most of that spending stays in the region. • Tribal Gaming Operations and Ancillary Facilities supported 264,963 ongoing jobs in 2022 of which 75% or held by non-tribal citizens. • Indian gaming activities do not take place in one company, but in 504 casino businesses. However, as a single category of enterprise, it would rank 20th among the top employers in the United States. • Total employment gains from the Indian Gaming industry’s economic activities totaled 684,158 jobs. Of this total, 38.7% or 264,963 were direct jobs, and 61.2% or 419,195 represented indirect jobs.
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Background Nationwide Indian Gaming continues to contribute tax revenues, purchasing power, expansion development and jobs throughout the United States where Indian casinos operate. It is a powerful catalyst for many American Indian Nations, allowing tribes an opportunity for bringing significant economic growth and jobs into their communities. This economic growth was almost non-existent prior to the Supreme Court’s 1987 decision in the California v. Cabazon. Furthermore, as was the intention of the federal Indian Gaming Regulatory Act in 1988, Indian Gaming has saved federal, state, and local taxpayers and governments from being required to fund of billions of dollars for unemployment and other income or food subsidies, for direct aid to tribal entities, and for education. This can be directly quantified in one monetary calculation as Indian Gaming’s 503 properties, in 2022, directly transferred $20.9 billion to Tribal governments for program spending and investments. In 2022, there were 246 Tribal Governments operating 504 gaming facilities with over 20.2 million square feet of gaming space in 29 states. In these facilities, management actively oversees In these facilities, management actively oversees • Slot machines – 374,822 • Table games – 6,354 • Poker tables – 1,286 • Bingo seats – 54,733 • Hotel rooms – 50,892 • Restaurants – 1,668 • Convention Space by Sq. Ft. - 4,730,340
This all contributed to help Indian gaming grow to $43.0 billion in gambling revenues and $5.4 billion in ancillary revenues for a total of $48.4 billion in total revenues. Special Note: In the “Indian Gaming Industry State- by-State Economic Impact Numbers for 2022” on page 21xx the total number of Tribes operating casinos at the state level is 253. When calculating the grand total of Tribes operating 504 casinos in the United States, the number is 246. Tribal Governments: Omaha Tribe of Nebraska (IA, NE), Winnebago Tribe of Nebraska (IA, NE), Quechan Indian Tribe (AZ, CA), Sisseton Wahpeton Sioux Tribe (ND, SD), Standing Rock Sioux Tribe (ND, SD), Fort Mojave Indian Tribe (AZ, NV) and Pokagan Band of Potawatomi Indians ( IN, MI) have casino businesses in two different states.
• Parking Spaces - 405, 725 • Entertainment Venues – 214
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Introduction Tribal Nations in the United States are sovereign nations. They resemble local and state government entities inasmuch as they provide: Tribal courts, police departments, housing departments, planning departments, hospitals, and school systems, as well as cultural and social programs for the youth and elders. Consequently, tribal nations have significant economic and social impacts on their tribal reservations and the regions surrounding those reservations. Tribal governments in 29 States, have had the opportunity to grow their contribution to the people and communities surrounding their Tribal lands, with a dynamic and growing business in casino entertainment. In the past ten years, Indian Gaming has paid $140,094,778,621 in taxes to the Federal and State governments, of which $15,318,198,769 has been in the form of revenue sharing, through existing agreements. This report seeks to quantify the annual production, employment, and payroll impacts of Indian Gaming in the states they are located in. The study methodology is discussed in the next few sections, followed by a detailed account of the direct and multiplier impacts from Indian gaming wages, operations, capital spending, and transfer payments made to Tribal Governments in 2022.
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Ec onomic Impact Modeling METHODOLOGY
MULTIPLIER IMPACT Estimations of indirect and induced impacts were prepared using the IMPLAN economic model originally developed for the USDA Forest Service in cooperation with the Federal Emergency Management Agency and the USDA Bureau of Land Management. The IMPLAN model was first developed in 1984 by MIG, Inc., and now known as The IMPLAN Group, LLC. The model uses as a primary foundation the US Department of Commerce Input-Output tables, which were first developed in the 1970
Economic impact assessments are meant to measure the effects of businesses or industries or other economic events within the bounds of geographies or other entities with identifiable boundaries. Economic impacts can be positive, negative or they can mitigate other impacts be they positive or negative. Economic impact analysis is an important tool that is used by both business and government to make decisions about new projects, capital investments, the historical effects of past development and the potential effects of a new line of business or government project. For this project, the goal was to identify employment outcomes, spending effects and fiscal effects relative to government-based taxes and government expenses incurred or avoided. DIRECT, INDIRECT & INDUCED IMPACT As briefly noted above, economic impacts can be direct, indirect, or induced. Direct impacts are generally the most obvious such as direct payroll or purchases or taxes paid. Indirect impacts are those generally associated with new business to suppliers of products or services; this new demand is in effect a multiplier on the original capital investment and the ongoing operations of the business being analyzed.
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Impact Overview The Dupris Consulting Group, LLC was asked to provide IGA the primary numbers identifying the economic impacts of Indian Gaming for the year 2022. This is done to show how Indian Gaming not only impacts the Indian reservation economies by providing needed jobs and funding for social programs, but how it impacts other sectors of the national economy such as: Agriculture, Manufacturing, Trade, Service and Government. As stated above, these impacts in 2022, were measured at $101.9 billion in total economic output, and provided 264,963 jobs on the reservation and 419,194 off the reservation. The total numbers of FTE’s/direct gaming & ancillary jobs have been updated using a combination of Dupris Consulting Group’s empirical data collection and survey data sets provided by Casino City Press . Indian gaming spending allocations and assumptions have been updated using a blend of Dupris Consulting Group’s empirical data collection and empirical financial metrics provided by Wipfli, LLP, in “The Indian Gaming Cost of Doing Business Report,” for 2022.
REVENUES In 2022, the Tribal gaming sector of the economy earned $43.0 billion in gambling revenues and $5.4 billion in ancillary revenues for a total of $48.4 billion in total revenues. The National Indian Gaming Commission (NIGC) reported $39.0 billion in gambling revenues in 2021. This represents a 10.3% increase from the previous year, when compared to what the Dupris Consulting Group has estimated for IGA in 2022. Because Ancillary revenues are not tracked by NIGC, the Dupris Consulting Group was not able to calculate a growth percentage to what NIGC would have reported. However, the Dupris Consulting Group has estimated that the growth in ancillary revenues from 2021 to 2022 rose 17.5%. OUTPUT In the current period, Indian Gaming generated significant economic activity which had an overall economic output of $101.9 billion. This represents an economic output of $28.9 billion on the reservation, where all Tribal casinos are located and an economic output of $73.0 billion off the reservation.
Indian Gaming Revenues in 2022
Gross Gaming Revenues
$43,053,093,632 $5,353,927,028 $48,407,020,661
Ancillary Revenues (Hotels, Food, Beverage, Entertainment, etc.)
Total Gaming & Ancillary Revenues
Source: Dupris Consulting Group, LLC
25 INDIAN GAMING - ANNUAL REPORT 2023
Im pact Analysis This area of the study estimates the total impact of the Indian Gaming Industry as its employees, purchasing activities and Tribal Government transfer payments were spent in the States were their casinos and reservations are based. The economic impact analysis takes the direct inputs (jobs, payroll, revenue, capital expansion) and measures the indirect and induced impacts that happens in an area that is being proposed for study.
Employment Gains In 2022, the total number of jobs created by Indian Gaming was 684,158 When calculating the number of jobs created by economic activity, we generally divide the jobs into three groups: Direct Employment, Indirect Employment, and Induced Employment. Direct employment is primarily based on employees hired or contracted directly by the enterprise. These can be full- time and part-time and contractors. The numbers we post are categorized as FTE’s or Full-Time-Equivalents. Indirect employment are jobs supported using business services and/or the purchases of products, for example, the purchase of food for restaurants, maintenance services for facilities, purchases of hardware or software, gaming supplies, and other goods and services. Induced employment are jobs supporting local restaurants, gas stations and hotels, banks, grocery stores, computer stores, other services and product companies that supply direct and indirect employees, contractors, customers, and visitors.
The Indian Gaming Industry creates jobs at three levels. The first level is employment at its 504 casinos, ancillary facilities, and other tribal government departments. The second round of job creation occurs as Indian Gaming employees spend their income on goods and services. A third level of employment is created when Indian Gaming Operations, ancillary facilities and Tribal Governments buy goods and services in the economy and make capital improvements.
26 INDIAN GAMING - ANNUAL REPORT 2023
Areas of Employment Gains The Indian Gaming Industry employs 264,963 full-time workers. Wages paid to these employees amounted to $7,968,391,098 in 2022, and employment resulting from casino and ancillary business employees spending their disposable incomes generated another 36,236 jobs in the local, regional, and national economy, bringing job creation for the first and second levels to 301,199. In 2021, Indian gaming facilities, and their ancillary businesses spent $16,900,484,927 on goods and services. This spending created another 166,871 jobs. The Indian Gaming Industry also undertook $2,371,202,391 in capital spending projects which created another 21,780 jobs.
Indian casinos transferred $20,954,467,009 to Tribal Governments, for programs spending and investments, which created 194,308 jobs. As a job generator in the United States economy, Indian gaming successfully contributes 684,158 direct and indirect jobs. Although Tribal gaming has matured since the passage of the Indian Gaming Regulatory Act in 1988, it continues to add growth and maintains stable employment at all the facilities throughout the United States.
INDIAN GAMING DIRECT AND INDIRECT JOBS GENERATED IN 2022
Direct Jobs in Gaming
220,144 44,820 264,963 36,236 166,871 21,780 224,887
Direct Jobs from Ancillary (Hotels, Food & Beverage, etc..)
Indirect Jobs from Wages created by Indian Gaming
Indirect Jobs created by tribal casinos purchasing activities of Goods & Services
Indirect Capital Expansion and Replacement Related Jobs
Indirect Jobs created from casino net income transfer payments to Tribal governments - purchasing goods & services, revenue sharing payments to state governments, capital expansion projects & regulatory spending at Federal, State & Tribal levels
194,308
Indian Gaming Stimulated Jobs Nationwide
684,158
Source: Dupris Consulting Group, LLC & IMPLAN Application
27 INDIAN GAMING - ANNUAL REPORT 2023
Federal and State Government Taxes Federal, State, and local taxes claim a third of income generated in the United States. Increases in economic activity expand the tax base and increase government revenues. Indian Gaming created 684,158 jobs throughout the United States. The wages associated with these jobs generated federal, state, and local payroll, income, and other taxes and helped reduce welfare payments and unemployment benefits, freeing up more government revenue for other purposes. Wages paid to employees of Indian Gaming amounted to $7,968,391,098 and employment resulting from Indian Gaming employees spending their disposable incomes, gaming operation purchases, capital spending and transfer payments to Tribal Governments, generated another $29,021,044,193 in wages.
Together in 2022, casino employment, operation purchasing and other economic activities of Indian Gaming, as well as the spending that happens with transfer payments to Tribal governments was responsible for generating $11,516,274,869 in Federal Taxes, $4,624,234,382 in State Taxes , $1,387,751,993 in County Taxes. In total $17,528,261,245 was generated in tax revenues for these forms of governments in 2022.
2022 Tax Revenues by Federal, State & County Government
$20,000 $18,500 $16,000 $14,500 $12,000 $10,500 $8,000 $6,500 $4,000 $2,000 $-
$17,528.3
$11.516.3
$4,642.2
$1,387.8
Federal Taxes
State Taxes
County Taxes.
Total Taxes
Source: Dupris Consulting Group, LLC & IMPLAN Application
28 INDIAN GAMING - ANNUAL REPORT 2023
Federal, State & County Tax Catagories Breaking out the various taxes generated under Federal, State, & County Governments show that Indian Gaming operation spending and the transfer payments they make to Tribal governments created $5,783,812,276 in Federal Personal Income, Social Insurance-Employee & Employer Contribution, Custom Duty, Excise, and Corporate Profit taxes. Within the states that Tribal governments exist, and their casinos operate from, we see that $3,578,758,343 in State and County tax revenues have been generated. These tax categories include State Personal Income, Motor
Vehicle License, Property, Social Insurance-Employee & Employer Contribution, TOPI - Sales, Property, Corporate Profits, Motor Vehicle License, Severance, and Special Assessments. Along with adding tax revenues to government treasuries, the federal government saved $3,318,040,090 through avoiding unemployment and other government aid subsidies. At the state government level, Tribes continue to support their counterparts through revenue sharing payments for operating casinos in selected states where they are located at. In 2022 the revenue sharing payments were $2,091,873,832.
Tax Bases (Wages, Operations, Capital & Transfer Payments)
In Whole $’s $7,968,391,098 $29,021,044,193 $36,989,435,290
Direct Indian Gaming, Ancillary Wages
Indirect Wages earned by workers performing all activities related to Indian Gaming
Total Direct and Indirect Wages earned by Workers
Tax Revenues by Federal, State & County Governments
Federal Income Household Pesonal Income Taxes from Direct Casino Wages Social Security and Medicare Taxes from Direct Casino Wages
$1,195,258,665 $1,219,163,838
Federal Government Taxes (Personal Income, Social Insurance-Employee & Employer Contribution, Custom Duty, Excise, Corporate Profits)
$5,783,812,276 $3,318,040,090 $11,516,274,869
Total Savings from avoided Unemployment & Other Government Aid
Subtotal Federal Tax Income
State Income Household Personal Income Taxes from Direct Casino Wages
$341,354,201
State Government Taxes (Personal - Income, Motor Vehicle License, Property, Others; Social Insurance- Employee & Employer Contribution, TOPI - Sales, Property, Corporate Profits, Motor Vehicle License, Severance, Special Assessments, Others)
$2,191,006,350 $2,091,873,832
Total Revenue Sharing Payments to Selected State Governments
Subtotal State Tax Income
$4,624,234,382
County Income County Government Taxes (Personal - Income, Motor Vehicle License, Property, Others; Social In- surance-Employee & Employer Contribution, TOPI - Sales, Property, Corporate Profits, Motor Vehicle License, Severance, Special Assessments, Others)
$1,387,751,993
Total Federal, State & County Tax Revenues
$17,528,261,245
29 INDIAN GAMING - ANNUAL REPORT 2023
Government Taxes Paid (2013 to 2022) In the past ten years, the accumulation of taxes generated by Indian Gaming is significant. Since 2013 to 2022, the total contribution to the United States and State Treasuries was $140,094,778,621.
During this time, Tribes in selected states have allocated an additional $15,318,198,769 in revenue sharing payments to state treasuries. As Indian gaming succeeds, so do states with revenue sharing agreements in place.
$140,094.8 2013 - 2022 Federal & State Revenues Generated by Indian Gaming $160,000 $140,000 $120,000 $100,000
$80,000 $60,000 $40,000 $20,000 $-
$98,229.1
$26,547.5
$15,318.2
Total Federal & State Revenue
Federal Treasury Revenues
State Treasury Revenues State Revenue Sharing
30 INDIAN GAMING - ANNUAL REPORT 2023
Multiplier and Total Impact Thi s analysis is primarily based on an input/output modeling structure. There are three primary types of multipliers used in this analysis: Employment, Income and Output. Employment multipliers identify the total change in the number of jobs in each of the associated areas of employment for each direct job or unit volume in payroll generated by the primary subject of the analysis. Income multipliers represent the total dollar valued change in the income or earnings of households employed by all the industries for each dollar of payroll expended by the primary subject of the analysis. Output multipliers represent the total dollar change in all industries that results from a dollar change in output delivered to final demand by the subject of the analysis. Technology, geography, inter-industry linkages or leakages of output, localization and other criteria affect value of the multipliers. An I-O model offers a glimpse of the economy, detailing the sales and purchases of goods and services between all sectors of the economy for a given time within a conceptual framework derived from economic theory. The activities of all economic agents (industry, government, households) are divided into numerous production sectors. The transactions between the sectors are measured in terms
of dollars and segmented into two broad categories: non- basic, which includes transactions between local industries, households and other institutions, and basic, which includes transactions between industries, households, and other institutions outside the economy being modeled (i.e., imports and exports). How it works: Indian casinos purchases paper from the office supply store, the office supply store purchases employee uniforms from a local clothing store, the clothing store pays a local cleaning service to clean the store, and so on. Each round of inter-industry purchases generates fewer local effects until all the money originally spent leaks out of the region. This is typically referred to as the multiplier effect or the ripple effect. Local purchases of labor work in the same manner, with workers spending their incomes on all manner of goods and services such as food, clothing, school, housing, and visits to the doctor. The sum of the direct, indirect, and induced effects equals the total economic impact. Estimates of indirect and induced impacts were prepared by the Dupris Consulting Group, LLC. , using multipliers from the Regional Input/output Modeling System (RIMS II) maintained by the U.S. Department of Commerce’s Bureau of Economic Research as well as a software package called IMPLAN. Multipliers are derived mathematically from empirical data pertaining to specific geographies, industries, and other attributes of economic systems.
31 INDIAN GAMING - ANNUAL REPORT 2023
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