Economic and Fiscal Benefits of Tribal Government Gaming

Analysis Group/Economics, Inc

July 01, 1998 - Sacramento, CA

· Indian gaming currently contributes approximately $120 million in state and local tax receipts annually, including $36.6 million in state personal income taxes, $23.6 million in state corporate income taxes, $48.6 million in state and local sales and use taxes, and $9.0 million in other taxes and payments in lieu of taxes.

· Indian gaming is estimated to have reduced AFDC payments by $50.0 million, including reductions of $21.0 million to tribal members and an additional $28.9 million to other former recipients

· Contributions to the trust funds that would be established under the proposed initiative are projected to total $30.9 million annually at current levels of Indian gaming activity.

· Seventy-four percent of Indian gaming customers surveyed indicated that if Indian gaming were not available in California they would go instead to a casino in Nevada, thereby reducing income, jobs, and tax receipts in California.

· Total casino revenue generated directly by Indian gaming in California, including in-casino concessions, approached an estimated $1.4 billion in 1997.

· Additional direct revenue is created by gaming patrons’ expenditures at local non-casino businesses which totaled an estimated $273 million in 1997.

· The total positive impact of Indian gaming on the output of final goods and services in California, both directly and indirectly through subsequent rounds of spending, is estimated to equal approximately $4.4 billion

· Indian casinos employ an estimated 14,571 California residents, 90 percent of whom are not Indians.

· In addition to those directly employed at casinos, Indian gaming supports an estimated 33,800 additional jobs in California through subsequent rounds of spending by employees, vendors, construction firms, tribal governments and other affected businesses.

· The jobs created by Indian gaming are predominantly located in counties with historically high rates of unemployment and low per capita income.

· Casino employees, 92 percent of whom hold full-time positions, earn wages comparable to the wages of workers in other similar service industries.