(August 22, 2024) – Wipfli LLP, a top 25 accounting and consulting firm, 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, which includes data from 132 tribal casinos across 18 states, offers valuable benchmarks and trends that are crucial for casino operators as they navigate the post-pandemic landscape.
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 4-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 report not only provides a detailed analysis of the financial health of tribal casinos but also offers strategic insights for improving profitability and sustainability. Wipfli emphasizes the importance of adapting to current market conditions, leveraging data-driven decision-making, and exploring new revenue streams to maintain a competitive edge.
Grant Eve, Wipfli’s leader for the tribal gaming and government industry, commented on the findings.
“The data in this year’s report underscores the resilience of the tribal gaming industry. While profit margins have narrowed, the overall financial health remains strong,” he said. “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.”
Wipfli remains committed to supporting the Indian gaming industry with tailored services, including financial audits, technology services, and strategic consulting. The full report is available on Wipfli’s website.
About Wipfli LLP: Wipfli LLP ranks among the top 20 accounting and business consulting firms in the nation. For over 90 years, Wipfli has provided solutions to help clients reach their goals and make a lasting, positive impact.