MILWAUKEE, WI – Wipfli LLP has released its 26th Annual Indian Gaming Cost of Doing Business Report, providing comprehensive insights into the financial performance of tribal gaming operations. This year’s report includes data from 132 tribal casinos across 18 states, offering valuable benchmarks and trends.
The 2024 report reveals that despite economic challenges, the Indian gaming industry continues to thrive, with tribal gaming revenue reaching an all-time high of $41.9 billion in 2023. However, profit margins have tightened, with the average net profit percentage dropping to 26%, a modest four-point decrease from the previous year. This trend highlights the growing impact of inflation and increased competition on the industry.
Key findings from the report include:
- Revenue sources: Slot machines remain the primary revenue generator for tribal casinos, while marketing, promotions and wages are among the largest expenses.
- Sports betting: The inclusion of sports betting in more casinos is driving new client engagement, though it has yet to become a significant income contributor.
- Profitability trends: The average net profit margin has decreased for the second consecutive year, reflecting the ongoing economic pressures facing the industry.
- Regional variations: The Oklahoma region saw the highest return on assets, showcasing the variability in performance across different regions.
“The data in this year’s report underscores the resilience of the tribal gaming industry,” said Grant Eve, Wipfli’s leader for the tribal gaming and government industry. “While profit margins have narrowed, the overall financial health remains strong. It’s crucial for casino operators to use these insights to strategically navigate the economic challenges ahead and continue delivering value to their tribal communities.”