Arizona gaming revenue to state down in 4Q of 2009

PHOENIX - The recession continues to take its toll on reservation gaming, affecting not just the tribes but the state programs that share in the profits.

New figures Monday from the Arizona Gaming Department show revenue sharing by the tribes for the last quarter of 2009 was just slightly more than $11.1 million. That compares to $12.8 million in the same period a year earlier - and $15.2 million the year before that.

State Gaming Director Mark Brnovich said the numbers appear to be consistent with what is happening elsewhere in the country.

Gaming experts have said the willingness of Arizonans to put money into slot machines, wager on poker or engage in other forms of gambling permitted on reservations is closely linked to what people consider their "disposable" income for entertainment purposes.

The tribes do not share dollar figures on actual gaming "handles" - the amount of money actually wagered - with the public. The only thing released is a once-a-year tally of gross profit figures, income after paying out winnings but before expenses. And that is not broken down by tribe.

That makes the amount shared with the state - a variable percentage of what each tribe makes - the best indication of trends.

The requirement for tribes to share revenues with the state goes back to a 2002 initiative that gave Native Americans the exclusive right to operate casinos in Arizona.

That measure requires tribes to share 1 percent of the first $25 million in "net wins" each year. That is what is left after gamblers collect their winnings but before other casino expenses.

Arizona gets 3 percent of the next $50 million, 6 percent of the next $25 million and 8 percent of anything above $100 million a year.

Despite the decline, Brnovich said the contributions "continue to provide significant funding for an array of public programs."

Of the funds collected, half go to education, with another $2.5 million for trauma and emergency services. The Arizona Wildlife Conservation Fund and the state Tourism Fund each get about $717,000, and more than $222,000 goes to programs to help people with gambling problems.

The Gaming Department keeps more than $1.9 million for its costs in monitoring and regulating the industry.

Source:Howard Fischer Capitol Media Services | Posted: Tuesday, February 2, 2010 12:00 am