Study says tribal casinos produce
$7.5 billion benefit to state economy
By Tim Fucci
Special to The Star
Posted August 8, 2012 at
6:04 p.m.
SACRAMENTO — The
California Nations Indian
Gaming Association
released an economic report
Wednesday that finds tribal
government gaming
operations account for $7.5 billion in economic benefits to California and support more than
52,000 jobs statewide.
Conducted by Beacon Economics, an independent economic and consulting firm, the report
surveyed 2010 economic data from 13 of the approximately 60 gaming tribes across California.
Those studied included a cross-section of large and small casinos in urban and rural markets
with a range of amenities such as hotels, restaurants, retail businesses and entertainment
venues.
Of the 52,000 jobs, 30,000 come from operations within the casinos. The study estimates tribal
gaming creates an additional 22,000 jobs in the broader economy, putting the industry on par
with the state's non-residential construction industry, which accounts for about 53,000 jobs and
the apparel manufacturing industry, with 56,500 jobs.
Because the casinos are located on sovereign, federally recognized Indian reservations, the
tribes do not have to pay income taxes on revenues derived from casino operations.
Still, the report says that Indian gaming activities generate about $465 million in tax revenues to
the state through income and payroll taxes paid by employees and through sales and property
taxes from off-reservation facilities.
Speaking at a news conference, CNIGA chairman Daniel Tucker said it was time for the state's
Indian gaming operations to release a public report card, which is available
at http://www.cniga.com.
"California tribes made a promise to the people of our state," said Tucker. "We promised to our
people, our land, and our government that we will provide jobs for our people and for our
neighbors."
More than 80 percent of casino employees are non-tribal members, according to the report, and
earn an average salary of $33,400, usually with benefits, more than double the average salary
of California workers in the hospitality industry. Economists estimate the tribal gaming industry
produces $1.4 billion in direct wages for its employees.
Christopher Thornberg, founding partner of Beacon Economics in Los Angeles, said that Indian
gaming contributes substantially to the California tax base.
"In a very real sense, the ability for Californians to enjoy these sort of entertainment options right
here in the state means that those dollars, which would otherwise go over the border into
Nevada, are instead staying here," said Thornberg. "These operations really do contribute in a
very significant way to the overall California economy."
The Chumash Casino Resort, a tribal-run casino near Solvang, is the only Indian-gaming facility
in the Ventura-Santa Barbara County region. It employs more than 1,700 people.
Ron Anderson, president of the nearby Buellton Chamber of Commerce, said the casino has
been a generous member to the community by donating money to events put on by the
chamber and helping fund the construction of a new football field for the local high school.
Equally important, Anderson said, is that the Chumash Casino is a magnet for tourism. The
casino also has been a key player in marketing to its guests Buellton's wine industry. In
addition, he noted that passers-by on their way to the casino have helped keep Buellton's
economy stable even during the recession by patronizing the city's seven gas stations and
various fast-food restaurants. "To me, it's been a positive in a down economy," said Anderson.
"We have a lot of wine tourism, and they're helping us market it and that's great."
The CNIGA news conference Wednesday also was used to celebrate the ways Indian gaming
has worked to give back to communities. The study cited that many California gaming tribes
donate millions of dollars each year to fund cancer research and combat homelessness, for
example.
Funds generated from gaming also are shared among non-gaming tribes in the state, with about
$818 million distributed since the first tribal-gaming compacts were signed in 1999.