SAN DIEGO – Tribal government gambling revenues in 2009 fell about 2 percent, the first annual decline since federal law permitting tribal casinos was enacted in 1988, according to an annual economic impact report by the National Indian Gaming Association. By Dave Palermo, Indian Country ztoday Apr 9, 2010

SAN DIEGO – Tribal government gambling revenues in 2009 fell about 2 percent, the first annual decline since federal law permitting tribal casinos was enacted in 1988, according to an annual economic impact report by the National Indian Gaming Association.

Casino revenues in 2008 reached $26.7 billion, according to NIGA’s “Economic Impact of Indian Gaming,” released at the association’s annual meeting and trade show at the San Diego Convention Center. Revenues for 2009 fell about 1.8 percent to $26.2 percent, the study said.

Hotel and other non-casino hospitality revenues generated by tribal governments are expected to remain flat at $3.2 billion, according to the study.

While the revenue figures are somewhat disappointing, they indicate the tribal government gambling industry remained resilient in the midst of the nation’s worst economic slumps since the Great Depression.

“It’s been a tough year,” said Bill Lomax, president of the Native American Finance Officers Association and a citizen of the Gitxsan Nation. With the commercial gambling industry suffering revenue drops in the double digits, a decline of less than 5 percent can be considered a success, he said.

“Slightly down is a new up these days,” he quipped.

Lomax predicted a slowing improvement in the economy. If there are additional declines in gross gambling revenues in the next year or two, he said they could be made up in more efficient management.

Lomax also noted the 5 to 8 percent commercial loan default rate by tribal governments is far lower than the national average.

There are 237 tribes and Alaska Native villages operating 442 casinos in 28 states. NIGA’s study states the tribal casino and hospitality industry generates 628,000 direct and indirect jobs and $11 billion in federal, state and local taxes.

About 20 percent of tribal gambling revenues are spent on “education, children and elders, culture, charity and other purposes.”

Nineteen percent of net gambling revenue is used for economic development, 17 percent for health care, 17 percent for police and fire protection, 16 percent for infrastructure and 11 percent for housing, according to the study.