Tribal gaming holds great significance in the gaming industry of the United States, with tribal casinos playing a crucial role in the overall gaming landscape.
The Native American impact on the industry dates back to 1988 when the Indian Gaming Regulatory Act (IGRA) was passed, granting tribes the power to build and oversee casinos on their reservations. Since then, tribal gaming has thrived as a highly profitable sector, generating significant revenue over the years.
In recent years, tribal gaming has accounted for almost 45 percent of gaming revenue in the United States, and this percentage has consistently been on the rise. Experts predict that tribal gaming will surpass commercial gaming revenue in the upcoming decade.
Tribes are required by the IGRA to establish tribal-state gaming compacts in order to provide a range of gaming options, including Vegas-style casino games.
In order for tribes to engage in gambling, they are required by the IGRA to obtain federal recognition from the Bureau of Indian Affairs. Additionally, the approval of compacts by the US Department of Interior is also mandatory. Furthermore, the establishment of the National Indian Gaming Commission (NIGC) by the IGRA ensures that all tribal gaming activities in the United States are overseen by a federal agency.
At the start of 2020, the United States boasted 574 federally recognized tribes, nearly half of which engage in casino activities, some even overseeing multiple establishments. Presently, the US is home to more than 500 diverse tribal casinos.
Below is a detailed summary of tribal gaming in the United States, including relevant information about:
- The tribal casinos’ geographical positions.
- The variety of games offered at tribal casinos.
- Some of the largest tribal casinos can be found in the United States.
- Tribal gaming produces revenue.
- The legality of tribal gaming, which encompasses the Indian Gaming Regulatory Act (IGRA) and other related issues.
States with tribal casinos
Currently, tribal casinos are operating in 29 states out of the total 50 in the United States.
States with gaming tribes and tribal casinos
The table below represents the tribal gaming landscape as of the start of 2020. It displays the states that have tribal gaming, along with the number of tribes and casinos in each state. The data provided has been sourced from the NIGC.
The totals encompass various types of casinos, including those classified as Class II only, Class III only, and Class II & III (further explained in the tribal casino classification system below). Moreover, the totals also incorporate smaller establishments such as convenience stores and truck stops, even if they do not precisely fit the conventional casino definition.
It should be noted that in certain cases, tribes from one state operate casinos on land they own in a different state.
| State | Gaming Tribes | Tribal Casinos |
|---|---|---|
| Alabama* | 1 | 3 |
| Alaska* | 2 | 2 |
| Arizona | 16 | 26 |
| California | 68 | 77 |
| Colorado | 2 | 2 |
| Connecticut | 2 | 2 |
| Florida | 2 | 7 |
| Idaho | 4 | 10 |
| Indiana* | 1 | 1 |
| Iowa | 3 | 4 |
| Kansas | 5 | 6 |
| Louisiana | 4 | 5 |
| Michigan | 12 | 24 |
| Minnesota | 11 | 40 |
| Mississippi | 1 | 3 |
| Montana | 6 | 13 |
| Nebraska | 4 | 5 |
| Nevada | 2 | 4 |
| New Mexico | 14 | 27 |
| New York | 4 | 16 |
| North Carolina | 1 | 3 |
| North Dakota | 5 | 12 |
| Oklahoma | 32 | 140 |
| Oregon | 8 | 10 |
| South Dakota | 8 | 13 |
| Texas* | 2 | 2 |
| Washington | 24 | 36 |
| Wisconsin | 11 | 27 |
| Wyoming | 2 | 4 |
Specifically refers to states that solely possess Class II casinos.
States with the largest tribal gaming industry
Oklahoma takes pride in having the highest count of tribal casinos among all the states, with a grand total of 140. On the other hand, California is renowned for being the residence of the largest number of gaming tribes, reaching a notable sum of 68.
On an annual basis, the NIGC presents statistics on the collective gaming revenue produced by tribal casinos, organizing them by region rather than individual states. Year after year, the Sacramento region, which includes California and Northern Nevada, consistently exhibits the highest revenues among tribal casinos.
Gaining access to revenue figures specific to tribal casinos in each state can sometimes pose a challenge. However, the American Gaming Association has successfully compiled revenue totals for tribal casinos in most states for the year 2016. These statistics shed light on the states where the tribal gaming industry thrives, with California and Oklahoma standing out as leaders in terms of the substantial gross gaming revenue generated by tribal casinos.
| State | Tribal Casinos’ Gross Gaming Revenue (2016) |
|---|---|
| California | $8.41 billion |
| Oklahoma | $4.36 billion |
| Florida | $2.56 billion |
| Washington | $2.53 billion |
| Arizona | $1.9 billion |
| Connecticut | $1.61 billion |
| Minnesota | $1.51 billion |
| Michigan | $1.42 billion |
| Wisconsin | $1.33 billion |
| New York | $925.8 million |
| New Mexico | $861.6 million |
| Colorado | $833.7 million |
How many tribal casinos are there?
As of the start of 2020, there were a collective of 524 tribal casinos spanning across 29 states, as reported by the NIGC.
In other words, the amount of tribal casinos in the United States exceeds that of commercial casinos. According to the AGA’s report, there were 465 commercial casinos in operation across 25 states at the start of 2020. This number includes land-based casinos, riverboat casinos, and racinos.
What can you bet on at tribal casinos?
Slots
Just like in commercial casinos, tribal casinos also favor slots as the top choice for gaming. Tribes often engage in agreements with states to offer Class III gaming primarily to provide the opportunity for real money slots.
Table games
Tribal casinos that are authorized to offer Class III games not only offer a diverse selection of table games such as roulette, craps, and blackjack, but they also provide poker games. These casinos are well-known for their expansive and highly coveted live poker rooms.
Tribal casinos that restrict themselves to Class II games are unable to offer the same Vegas-style casino experience. However, they are allowed to host live poker as it is considered a non-banked card game. It is important to mention that while some Class III tribal casinos feature large poker rooms, the poker rooms in Class II tribal casinos usually have only a limited number of tables offering low-stakes games.
Bingo
The origin of tribal gaming dates back to the inception of bingo halls, which remain a crucial component of tribal casinos even today. In Class II tribal casinos, bingo is among the approved games, and these establishments are widely recognized for their electronic bingo games that closely imitate slot machines. For further details, please refer to the section titled “Tribal vs. commercial casinos: Available games.”
Sports betting and sportsbooks
Since mid-2018, the United States has witnessed a significant growth in sports betting, with the emergence of multiple retail sportsbooks in commercial casinos across the country. However, tribal casinos have been comparatively slower in embracing sports betting, primarily due to the intricate nature of tribal-state gaming compacts.
The Golden Moon Hotel and Casino, located at the Pearl River Resort in Choctaw, Mississippi, holds the prestigious title of being the first tribal casino outside of Nevada to offer a sportsbook. However, despite this significant achievement, only a few other tribal casinos have followed suit. The main reason for this limited adoption is that only a small number of states where tribal casinos are present have legalized sports betting in the United States.
In October 2018, the Santa Ana Casino in New Mexico took a daring step by introducing a sportsbook, even though sports betting was not yet legalized in the state. The Pueblo of Santa Ana Tribe justified their decision by citing their Class III gaming compact with the state, which they believed gave them the power to offer sports betting. Encouraged by this move, numerous other tribes in New Mexico followed suit and opened retail sportsbooks in their own casinos.
Washington state enacted a new sports betting law in March 2020, granting exclusive permission to the state’s tribes to establish sportsbooks. However, the implementation of tribal-operated sportsbooks is likely to be delayed due to legal challenges from opponents of the law, as well as the need for regulatory measures and revised agreements.
In July 2021, California Congressman Lou Correa and New York Congressman John Katko introduced House Bill 4308, which proposes federal oversight of online casino gaming and mobile betting conducted on servers situated on tribal lands. The primary objective of this bill is to remove federal barriers related to offering mobile wagering on Indian territories, provided there is an agreement between the relevant state and the Indian Tribe.
The increasing popularity of online gambling in the US has presented challenges for regulations to keep up. Implementing a bill like this would provide significant support to tribal casinos in their transition to the digital platform. This approach would bypass the complex and time-consuming state-by-state legal procedures and instead establish a comprehensive federal regulation.
Online gaming
Although certain tribes have implemented free-to-play social gaming platforms, they have generally shown reluctance when it comes to exploring the domain of extensive online casinos.
The states of Delaware, New Jersey, Nevada, Pennsylvania, and West Virginia, which have all legalized online gambling, do not have any tribes that possess gaming compacts. These compacts impose restrictions on tribes, permitting them to offer only those games that are already deemed legal in their respective states.
In 2019, Michigan joined the ranks of states legalizing online gambling, making it the sixth state to do so. This decision reflects the prosperous gaming tribes and tribal casinos in the state, and opens up opportunities for Michigan tribes to explore the online casino and sports betting industry.
The biggest tribal casinos in the United States
Due to their remarkable size, tribal casinos in the United States claim the distinction of being the largest casinos.
Many people consider the WinStar World Casino and Resort, situated in Thackerville, Oklahoma near the Oklahoma-Texas border, to be not only the largest casino in the United States but also the largest globally.
The extent of the gaming space is determined by its measurement. With nine gaming plazas, the WinStar asserts its possession of around 400,000 square feet of gaming area. Nevertheless, some sources speculate that the actual total could be greater, surpassing 500,000 or even exceeding 600,000 square feet. Such figures would even surpass the immense Venetian Macao in Macau.
Ranked by gaming space and number of slot machines, these are the top five tribal casinos. Moreover, all of them provide an extensive range of table games and feature generously sized poker rooms. It is worth mentioning that Foxwoods Resorts Casino houses one of the largest poker rooms in the country, outdone only by the rooms at California’s Commerce Casino and Bicycle Casino.
| Casino | Tribe | Location | Gaming Space (Square Feet) | Slots |
|---|---|---|---|---|
| WinStar World Casino and Resort | Chickasaw Nation, Oklahoma | Thackerville, OK | 400,000 | 8,500 |
| Mohegan Sun | Mohegan Tribe of Indians of Connecticut | Uncasville, CT | 364,000 | 6,500 |
| Foxwoods Resort Casino | Mashantucket Pequot Indian Tribe | Mashantucket, CT | 344,000 | 5,500 |
| Thunder Valley Casino Resort | United Auburn Indian Community of the Auburn Rancheria | Lincoln, CA | 250,000 | 3,400 |
| Seminole Hard Rock Hotel and Casino Tampa | Seminole Tribe of Florida | Tampa, FL | 245,000 | 5,000 |
Among the largest tribal casinos in the United States are the San Manuel Casino in Highland, CA, boasting a gaming space of 220,000 square feet, the Choctaw Casino Resort in Durant, OK, with 210,000 square feet of gaming space, and the Pechanga Resort & Casino in Temecula, CA, offering 188,000 square feet of gaming space.
How much money do tribal casinos make?
As previously indicated, the gross gaming revenue of tribal casinos in the United States is steadily approaching the revenue levels achieved by commercial casinos.
From 1995 to 2000, tribal casinos saw their revenue increase by two times, going from $5.4 billion to $10.9 billion. The next decade witnessed an even greater rise as revenue more than doubled again, reaching a remarkable $26.5 billion by 2009. Notably, throughout the entire span of the 2010s, revenue consistently grew and reached its highest point at $35 billion in 2019.
Where does tribal casinos’ gaming revenue go?
The IGRA requires tribes to set aside gaming revenue for specific purposes, including:
- Financial support is given to tribal government and initiatives to ensure their smooth operation.
- Making sure the tribe and its members are safe and healthy.
- Encouraging tribal economic growth
- donating to charitable organizations
- Helping local government agencies obtain funding for their operations.
In their report on the economic and fiscal implications, the American Gaming Association highlighted the substantial scale of the tribal gaming industry. Through an analysis of state-specific data from 2016, the AGA uncovered the pivotal role played by tribal casinos in:
- The economies of the states will receive a significant boost with the injection of $105 billion.
- supporting 676,000 jobs
- A total of $36.2 billion was disbursed to employees as their wages.
- As a result, a significant amount of $15.2 billion in taxes and revenue share payments was generated, benefiting federal, state, and local governments.
Tribal casinos and the law
The emergence of tribal casinos in the United States is closely linked to the larger story of Native Americans seeking self-governance. In fact, the current federal laws regarding tribal casinos originated from a legal dispute that revolved around this very matter.
How did tribes end up being able to have casinos?
In 1976, the United States Supreme Court made a landmark decision that had a profound impact on Native American tribal sovereignty. This ruling was the outcome of the Bryan v. Itasca County case, which was filed by a member of the Minnesota Chippewa Tribe. The case arose after the individual received a tax assessment for his mobile home located on the tribe’s reservation.
After lower court rulings were challenged, the Supreme Court reached a unanimous decision, stating that the state did not have the authority to impose taxes on activities occurring on tribal lands. Additional court decisions later clarified that the state was forbidden from levying taxes or imposing limitations on conduct on tribal lands, even if such actions were allowed elsewhere in the state.
After the court ruling, tribes in various parts of the country wasted no time in setting up gaming facilities, with a focus on bingo halls, some of which were quite large. Among them, the Seminole Tribe of Florida successfully built one such facility, leading to subsequent legal battles that ultimately ended in the tribe’s favor.
In California, the Cabazon Band of Mission Indians encountered a similar situation with their gambling establishments. Just like the tribe, they triumphed in their legal dispute. Nevertheless, after careful examination by the Supreme Court, it was determined that Native American gaming must adhere to federal regulations to safeguard tribal sovereignty.
As a consequence of that decision, federal legislation was put into effect to create a regulatory structure. Senators Daniel Inouye from Hawaii and John McCain from Arizona were involved in formulating the new bill, and Representative Mo Udall from Arizona sponsored a comparable legislation in the House. In September 1988, S.555 was successfully passed in both chambers, receiving unanimous approval in the Senate through a voice vote and a significant margin of 323-84 in the House.
The Indian Gaming Regulatory Act (IGRA)
President Ronald Reagan officially enacted the Indian Gaming Regulatory Act into federal law on October 17, 1988. This act establishes a legitimate regulatory framework for tribal gaming, enabling tribes to generate revenue through gaming activities while protecting them from potential criminal influences.
As stated earlier, the IGRA created the NIGC, a federal regulatory agency that operates under the Department of Interior. The NIGC is responsible for supervising tribal gaming operations nationwide and works closely with the Department of Interior and the US Department of Justice.
Furthermore, the legislation introduced three distinct classifications for tribal gaming.
Class I
Class I gaming consists of traditional gaming activities occurring at ceremonies and social events, where participants can win small prizes. Tribes possess the autonomy to carry out Class I games without requiring specific supervision or licensing.
Class II
Class II gaming includes bingo, keno, pull tabs, and non-banked card games. Tribes planning to offer these games must comply with regulations established by the NIGC. It is worth mentioning that under the IGRA, tribes are not required to enter into agreements with states to offer Class II games. Nevertheless, if state laws prohibit the provision of such games, tribes are prohibited from offering them.
Class III
Class III gaming includes various types of gambling that are not classified as Class I or Class II. These include popular casino games like slots, roulette, blackjack with real money, and craps. To offer Class III games, tribes must establish tribal-state compacts. These compacts require approval from both the federal government and the tribes before the games can be provided.
State laws and tribal-state compacts
Gaming compacts negotiations between tribes and states differ in their terms, but they consistently begin following the guidelines set by the IGRA and within the limits of the state’s existing gambling laws.
Many states have agreements with multiple tribes, and some states even negotiate agreements with multiple tribes at the same time. Oklahoma is a notable example, as it currently has agreements with an astonishing 35 different tribes.
A separate compact is not needed for each casino on tribal land; instead, multiple casinos can operate under a single compact. For instance, the Seminole Tribe of Florida has a gaming compact with the state that allows them to run six different casinos. However, the compact usually includes specific information about each casino property operated by the tribe.
There are two options available when it comes to the duration of compacts. One option is to set a specific timeframe, usually five or ten years, after which the compacts must be renegotiated and extended. Alternatively, compacts can be established without a predetermined end date, allowing them to last indefinitely.
In some cases, tribal-state compacts may involve tribes making payments known as exclusivity fees to the state. By doing so, tribes are granted exclusive permission to operate casinos within the state. It is important to note that these fees may vary depending on the specific games in question.
The age criteria in tribal-state gaming compacts vary among states, predominantly depending on the possession of a liquor license by the casino. In cases where a casino offers alcohol, the minimum age requirement is generally 21, whereas other tribal casinos might establish the minimum age at 18 or 19.
It is customary for amendments to be added to a tribal-state compact after its signing. These amendments often involve the addition of new games that the tribal casino wishes to offer. Additionally, they might adjust betting limits, modify the number of slots or tables allowed, or change other specific details.
How are tribal casinos different from commercial casinos?
Tribal vs. commercial casinos: Location
As mentioned earlier, tribal casinos are located on lands that belong to tribes. In some cases, these lands have been under tribal ownership for several centuries and are commonly known as reservations. In other situations, the federal government initially took possession of the lands but eventually returned them to tribes through the land into trust process. This process enables tribes to regain control over lands that were previously owned by their ancestors.
Land in trust, also referred to as “trust land” or “land into trust,” refers to the process in which the Department of the Interior acquires land and manages it on behalf of a tribe. It is important to emphasize that this land is exclusively designated for tribal use and is exempt from local or state governance.
Trust land and reservation land are regarded as equal in their legal status. Both types of land are subject to the same regulations and guidelines, especially in relation to activities such as gaming and the establishment of casinos, as specified in the IGRA and the aforementioned guidelines.
On the other hand, commercial casinos are only built in specific areas that are allowed by state and local laws. In some instances, it is mandatory for residents in the state or local region to support the establishment of casinos through voting, although this is not always necessary. As a result, the location of these casinos is subject to various restrictions, which include both legal and regulatory considerations.
Tribal vs. commercial casinos: Size
Tribal casinos and resorts typically do not face stringent limitations on their size, unlike commercial casinos. However, tribal casinos that provide Class III gaming must adhere to specific guidelines established in tribal-state compacts. These agreements frequently establish a maximum threshold for the number of slot machines that a tribe can have within a single establishment.
State laws regarding the size of casinos may not directly affect tribal casinos within the state, but they can still have an influence on the discussions and agreements between tribes and the state.
The sizes of commercial casinos are influenced by local and state laws, as well as regulatory oversight, resulting in variations. Generally, the size of a commercial casino is determined significantly by the size of the nearest city and its population.
Tribal vs. commercial casinos: Regulation
Once gambling is legalized through legislative action, state gambling commissions take charge in regulating commercial casinos. These commissions are responsible for creating rules and ensuring that they are followed. Consequently, commercial casinos are required to acquire licenses and comply with regulations in order to maintain their ability to operate.
Tribal casinos, in contrast to being regulated at a state level, fall under federal jurisdiction and are overseen by the NIGC. For Class III gaming, individual tribes negotiate compacts with the state to establish distinct rules governing the offering of these games.
Practically speaking, this means that there will be a notable rise in the variety of odds, payouts, and other elements of gambling across various casinos. Moreover, it involves specific regulations regarding payment schedules and revenue reporting, making it generally easier to access such information about commercial casinos in comparison to tribal casinos.
Moreover, tribal casinos are recognized for having tribal police stationed on their premises, while commercial casinos depend on security officers to enforce safety protocols. Consequently, should an individual endeavor to partake in cheating or unlawful activities at a tribal casino, the tribal police possess the jurisdiction to detain them. Conversely, in situations where crimes take place at commercial casinos, security officers typically need to seek assistance from local law enforcement. Additionally, individuals found guilty of criminal acts at a tribal casino are subject to tribal law, potentially depriving them of the same constitutional rights they would be entitled to in alternative circumstances.
Tribal vs. commercial casinos: Available games
Tribal casinos that offer Class III gaming provide a diverse selection of games that closely resemble those commonly found in commercial casinos. These games include popular choices like roulette, craps, blackjack, video poker, and slots, similar to the ones found in Las Vegas. Class III slot machines operate using a random number generator (RNG) and are programmed to payout a predetermined percentage of the total amount wagered.
Class II tribal casinos have restrictions on the types of games they can offer. They are only permitted to have bingo, keno, and certain non-banked card games. However, they are authorized to include poker, which is a game where players compete with each other rather than against the casino. Vegas-style games are not allowed in these casinos.
Class II slot machines, commonly known as “bingo slots,” bear a strong resemblance to traditional slots, yet they are officially categorized as bingo games. In contrast to conventional slots that employ a random number generator (RNG), these machines depend on electronic bingo games to determine the results of spins. These bingo games draw numbers that are utilized in multiple slot games concurrently.
Class II games often have a small bingo card displayed in one corner, distinguishing them from Class III games. In these games, the spinning reels are mainly for show, giving the appearance of a slot machine but operating as a bingo game.
Other tribal gaming resources
- National Indian Gaming Commission
- In 1988, the Indian Gaming Regulatory Act (IGRA) came into effect.