Tribal Casinos Generate Record Revenue In 2023 Amidst Declining Profit Margins

Financial Overview: 

Tribal casinos in 18 U.S. states achieved record revenue of $41.9 billion in 2023, per Wipfli LLP’s 26th Annual Indian Gaming Cost of Doing Business Report. However, profit margins dropped to 26%, down from 30% in 2022. Despite these challenges, the sector remains financially resilient.

Key Insights:

— Slot machines continue to be the main revenue source.

— Sports betting, while growing, remains a small contributor to overall income, with most wagers placed online.

— Profit margins have been declining for two consecutive years.

Regional Differences: 

Oklahoma casinos outperformed other regions, showing stronger returns. Meanwhile, online gambling’s rise is impacting in-person betting at casinos.

Future Expansion: 

Several new tribal casinos are set to open by 2026, including major projects in Oklahoma, Wisconsin, and California, underscoring continued industry growth.