State take from Indian gambling drops

Arizonans are spending less at the gaming tables as the state's economic slump continues. New figures Friday from the Arizona Gaming Department show that the revenue Indian tribes share with the state was 9.5 percent less for the three months ending Sept. 30 than the same period last year.

Tribes never publicly release total wagering numbers. And they share their gross profit figures - income after paying out winnings but before expenses - only once a year, and not on an individual basis.

That makes the revenue sharing figures a key indicator of gambling at tribal casinos.

Overall revenue sharing for the three months was nearly $25 million, compared with almost $27.6 million a year earlier.

There is no way to extrapolate how much tribes are actually taking in from those numbers because of the complicated system set up when Arizona voters agreed in 2002 to give Indians the exclusive right to operate casinos.

That measure requires tribes to share 1 percent of the first $25 million in "net win" each year. That is what is left after gamblers collect their winnings but before other expenses.

Arizona gets 3 percent of the next $50 million, 6 percent of the next $25 million and 8 percent of anything more than $100 million a year.

Sheila Morago, executive director of the Arizona Indian Gaming Association, said the numbers are not surprising.

"We're riding the same sort of wave as any industry that solely relies on disposable income," she said.

"People have less of it," Morago continued. "They're holding onto it a little tighter."

Things will get better, she said, "when everybody gets comfortable enough to start spending again."

Morago, whose organization lobbies on behalf of tribes with casino operations, said she has heard no talk from any of them about layoffs in the face of decreased gaming. In fact, she said the Gila River Indian Community is preparing to add more employees as it opens new and remodeled facilities on its reservation.

The biggest share of the revenue sharing goes to education, with smaller amounts for emergency services, gaming, wildlife conservation and tourism. The tribes are also required to reimburse the Gaming Department for the costs of regulation.

Gambling revenue

Revenue sharing for three months ending Sept. 30. Numbers are rounded to nearest dollar.

Administrative/regulatory (Gaming Dept.) $2,247,538

Problem gambling education, treatment and prevention $499,453

Instruction Improvement Fund (public schools) $12,446,367

Trauma and Emergency Services Fund $6,223,183

Arizona Wildlife Conservation Fund $1,778,052

Tourism Fund $1,778,052

Total $24,972,646