Tribal Gaming Revenue Stabilized in 2022 To Keep Growing Since
The 2023 Indian Gaming Cost of Doing Business Report recently published by the reputable financial advisor Wipfli shows that the Native Indian gaming operations are becoming more confident despite the surrounding economic concerns and contingencies. According to the 25th annual release of the Wipfli report, Indian casinos has left behind the pandemic-induced uncertainties to return to normal operations in 2022 seeking further opportunities and benefits for the community and the states ever since.
Revenues and Expenses Stabilized:
In line with the financial company’s report, Indian Gaming reports that the both the revenue and expense side of the tribal gaming operations have stabilized after years of volatile market results featured by record highs and lows in the circumstances of the COVID-19 pandemic. As reported, tribal gaming experienced a 35 percent increase in 2022 on a year-on-year basis whereas the revenue level reached an average of 17 percent to mark the industry’s third consecutive year of double-digit growth.
Contingencies:
At the moment, Indian casinos are reportedly facing a more stringent competition than in the COVID-19 period. Also, their operations are affected by inflation and labor shortage featuring, as reported, the entire industry and driving the operating costs up for all casinos in the States. However, it seems that the Indian gaming casinos navigated out of the stormy pandemic seas to be sailing in still waters since 2022, which reportedly represents the starting stabilization point.
Slot Machines Driving Revenues:
According to Indian Gaming, the Wipfli report on the tribal operating costs for the first time included the sports betting data this year. The same source reports that Indian sportsbooks are now legal in 37 states. As reported by Indian Gaming, sports wagering is not a key feature of tribal gaming operations but is used as a vehicle to attract more customers to Native American casinos.
As reported, the 2023 Indian Gaming Cost of Doing Business Report published by Wipfli also indicates that the main sources of tribal gaming revenue were slot machines propelling the major profits. On the cost side, marketing, promotions and salaries were the most notable expenses. The source reports that marketing expenses, as well as employee benefits, were higher than the previous years. However, these were reportedly additionally driven by inflation.
The average net profit margin reportedly settled at around 30 percent in 2022, which was a slightly lower result in terms of percentage points when compared to the year prior. But despite inflation and higher interest rates and overall expenses, Indian gaming industry widened the operating expense margin around two percent.
Valuable Report:
The financial advisors annual report has been published this year for the 25th time to reflect the tribal gaming industry conditions, trends, and sentiments. According to the source, the 2023 report compiled the financial data of 132 Native American casinos from 17 states to provide an insight into the Indian casino performance across different tribes, regions, and states, as well as to help tribal gaming facilities allocate funds into social development programs.
