Economist: Tribal casinos lost more than $1.5 billion during first two weeks of shutdowns

April 10, 2020 10:16 AM
  • Howard Stutz, CDC Gaming Reports
April 10, 2020 10:16 AM
  • Howard Stutz, CDC Gaming Reports

More than $1.5 billion in gaming and non-gaming revenues was lost by tribal casinos nationwide during the first two weeks of closures brought about the COVID-19 coronavirus pandemic, according to a California economist.

Story continues below

Alan Meister of Meister Economic Consulting said in a report the lost economic activity resulted in $240 million in lost taxes and revenue sharing received by federal, state, and local governments and $332 million in lost wages for the 296,000 tribal casino employees that at now out of work.

More than 500 Indian casinos operated by 246 tribes in 29 states closed over the few weeks of March by Native American governments in an effort to slow the spread of the pandemic.

Alan Meister

“It is noted that some of the aforementioned losses in wages and taxes have been temporarily mitigated by casinos that have continued to pay wages and provide benefits to employees in their early stage of closure,” Meister said in the report. “However, these situations are in flux and data are incomplete at this time.  Conservatively, lost benefits are not factored into lost wages at all as many tribal casinos have continued to provide benefits.”

Meister, who has produced the annual Indian Gaming Industry Report, which is published by Casino City Press, said the tribal casino closures are causing “significant detriment” to Native American tribes.

“Many rely heavily on gaming-related revenue to pay for tribal government operations, infrastructure, and social and economic programs and services for a Native American population that is already substantially disadvantaged,” Meister said.

According to the National Indian Gaming Commission, tribal gaming revenues nationwide grew 4.1% to $33.7 billion in the 2018 fiscal year, the last overall total currently available. Meister has said the tribes have been expanding non-gaming businesses at properties, such a dining, retail, and other entertainment attractions.

“The negative impacts on tribes and the economy will continue to mount as tribal casinos remain closed,” Meister said.

Nationwide, the American Gaming Association said nearly 1,000 commercial and tribal casinos in 43 states have closed due to the pandemic, which has sidelined more 680,000 employees.

Meister said the losses at tribal casinos have impacted the U.S. economy as a whole, contributing $4.4 billion in lost economic activity, that includes suppliers, governments, and employees

The pandemic also forced the National Indian Gaming Association to postpone its annual conference and tradeshow in San Diego last month. It’s also unclear how long the closures will last.

Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.