Indian gaming revenue in 2003 up 13.7 percent

By Liz Benston

Tuesday, July 13, 2004 | 10:47 a.m.

Growth in Indian gaming revenue continued to outpace revenue generated at the nation's commercial casinos in 2003, according to data released today by the National Indian Gaming Commission.

Tribal gaming revenue in 2003 grew 13.7 percent to $16.7 billion from 2002, according to the commission, which collects audited statements from gambling tribes. That compares with a growth rate of about 2 percent for commercial casinos in 11 states, which generated about $27 billion in revenue in 2003, according to recent data from the American Gaming Association.

California accounted for about 50 percent of the total increase in tribal gambling revenue nationwide, the commission said. In California, tribal casino revenue jumped by about $1 billion to $4.7 billion, an increase of about 28 percent from the previous year.

While the majority of tribal casinos are smaller operations, the largest casinos -- those generating $100 million or more in revenue in 2003 -- accounted for $10.7 billion or 64 percent of total tribal gaming revenue generated nationwide, the commission said.

The commission was created by Congress in 1988 to regulate and enforce laws allowing tribes to operate casinos for the benefit of tribal members. The agency has been under fire by casino critics and state governments for developing rules that would regulate bingo games that are similar to slot machines and would not require tribal-state compacts to operate. The rules would allow tribes to further expand their slot machine offerings with minimal oversight, critics say.

"The Indian gaming industry has grown significantly and steadily throughout the past decade," commission Chairman Phil Hogen said in a statement. "This growth has allowed tribes to create jobs, develop economically, build infrastructure within their communities and provide services for tribal members."