It seems like there is no end to the United States recession’s reach. People are cutting back on everything from everyday luxuries to Christmas presents, and now it appears that casinos are starting to feel the burn of a small pocket book
American Indian Casinos starting to see a Decrease in Profit
At first glance it appears that American Indian casinos are doing well, certainly better then Las Vegas casinos, and this is true to some extent; a few states seem to be recession-proof. However, while the American Indian casinos did see an increase in profit in 2008 from the previous year, a 1.5 percent increase across all 28 states that have American Indian casinos, that profit margin is slim compared to past years. Between 1993 and 2006, American Indian casinos had an average growth of 20.3 percent. Even in 2006, when the nation’s economy started to make a turn for the worst, these casinos still saw a 4.6 percent growth.
Oklahoma and Recession-Proof Casinos
Oklahoma may be the exception to the rule when it comes to a decrease in casino spending. Overall, Oklahoma has 110 casinos, (the largest collection in any state,) and saw an 18 percent increase in revenue in 2008. The biggest reason for this may be location. Oklahoma borders Texas, a state that has mostly escaped the recession and does not allow casino gambling establishments. With locations like Winstar World Casino, Oklahoma is able to draw in thousands of Texas residents daily.
The Future of American Indian Casinos
While American Indian casinos may have seen a drop in sales in 2008, it is unlikely that the set-back will be anything but temporary. Most casinos are still getting the same number of annual visitors as any year prior to the recession; those visitors are just spending less. Chances are when the United States recession starts to turn around, those visitors will return to spending as much, or more, as they were before.
Also, American Indian casinos are still on the rise, there was a 3 percent increase in casinos nationwide in 2008. Several states like California and Oklahoma are building new casinos and making additions to their existing ones. Winstar World Casino was one of the many American Indian casinos in Oklahoma to get a face-lift in 2008 and 2009. Winstar expanded their casino, added an adjacent hotel, and even a few restaurants. All of these attractions are likely to mean more visitors overall.
The United States recession can be seen everywhere, even at the casino, but overall the American Indian casinos are still making a profit. These same casinos are likely to see a bump in profits each year as the recession starts to turn around.
