Oklahoma Tribal Casinos Fuel Record $6.8 Billion Indigenous Gaming Revenue in 2023
The Oklahoma City and Tulsa regions have been instrumental in setting a new record for Indigenous gaming revenue, totaling $6.8 billion last year. This remarkable achievement has significantly bolstered the financial resources available to tribes, government programs, and charitable organizations.
According to a 2023 report from the National Indian Gaming Commission, the Oklahoma City region experienced the second-highest revenue increase among seven other areas listed, with a 2.1% rise translating to over $66 million. Close behind, the Tulsa region saw a 2% increase, amounting to $71 million. These contributions were pivotal in reaching the total gross revenue of $41.9 billion reported for the Indigenous gaming industry, marking an all-time high.
The Oklahoma City region’s jurisdiction extends into Texas, while the Tulsa region encompasses parts of Kansas. Both areas are home to over 149 gaming operations, collectively generating a substantial $6.8 billion in revenue.
Increased Exclusivity Fees and Their Impact
The Oklahoma Gaming Compliance Unit (PDF) Annual Report for fiscal year 2023 highlighted a significant 5.6% increase in tribal gaming exclusivity fees, which surpassed $202 million in 2023. These fees are critical for funding various state programs, with allocations made to the Education Reform Revolving Fund, the General Revenue Fund, and the Department of Mental Health and Substance Abuse Services. Notably, exclusivity payments from tribal nations with compacts have consistently risen each year since 2005, with only two exceptions in 2014 and 2020.
Exclusivity fees, paid by the tribes on a sliding scale based on Class III electronic game revenues, contribute significantly to state funds. In 2023, tribes paid $174.8 million in electronic games fees and $27.5 million from table games, according to KOSU radio. These payments are directed toward essential services and programs that benefit the community.
The state-tribal gaming compact stipulates that net revenues from tribal casinos must be used for specific purposes, such as community welfare programs, charitable organizations, and local government agencies. In fiscal year 2023, the Education Reform Revolving Fund received $177.8 million, the General Revenue Fund was allocated $24 million, and the Department of Mental Health and Substance Abuse Services received a statutory $250,000. This structured allocation ensures that the revenue generated from tribal gaming has a broad and positive impact on various state and local initiatives.
Expanding Operations and Future Prospects
Oklahoma’s tribal gaming industry continues to expand, with 35 tribal nations currently holding gaming compacts. The growth is reflected in the increasing number of Class III machines, which averaged 45,757 in 2023, up from 44,604 the previous year. This expansion highlights the ongoing development and investment in the gaming sector within the state.
Tribes such as the Chickasaw Nation, Choctaw Nation, and Cherokee Nation are among the top contributors, paying substantial exclusivity fees that support state funds. For instance, the Chickasaw Nation paid over $74.9 million, while the Choctaw Nation contributed $45.1 million in 2023.