Tribal gaming revenue hit an all-time high in 2023

26th annual Cost of Doing Business Report released

Tribal casinos posted some of their strongest balance sheets ever in 2023. Revenue for the tribal gaming industry reached an all-time high, hitting $41.9 billion, according to the National Indian Gaming Commission.

Data in Wipfli’s report helps confirm it. This was the fourth year in a row that tribal casinos increased revenue — and they grew despite higher expenses and smaller margins.

A detailed breakdown of gaming revenue and expenses is in the 2024 Indian Gaming Cost of Doing Business Report. Wipfli collected financial data from 132 tribal organizations in 18 states to capture the financial state of the industry.

Key findings:

• Revenue sources: While it wasn’t a major income contributor, sports betting revenue grew at a double-digit rate. As usual, slot machines were the primary source of gaming revenue in 2023.
  
  
• Rising expenses: Marketing expenses increased slightly in 2023, and casinos of every size spent more on employee benefits and incentives.
  
  
• Slower growth: In 2023, average revenue growth was 4%, down from 9% in 2022. This signals the market has stabilized and settled into a new “normal” after an incredible and prolonged COVID-19 recovery.

   

• Shrinking margins: Net profit margins decreased for the second consecutive year. In 2023, the average net profit percentage was 26%, which is about four percentage points lower than in 2022. Inflation and increased competition for discretionary dollars are to blame.

   

• Foundational strategies. The report also includes commentary from Wipfli gaming, financial and technology specialists. It outlines four strategies to help casinos continue on their growth trajectories.

Now in its 26th year, the Cost of Doing Business Report is the only report of its kind. Because Wipfli gets such robust industry responses, tribal operators use it to compare their performance against other tribal casinos across the country and by region and size. 

Get the report.

Media inquiries: Teresa Schmedding, teresa.schmedding@wipfli.com