According to a recent report from the Michigan Gaming Control Board, tribal casinos in the state have reported a 0.33% year-over-year increase in payments.
This is represented by a $30.5 million payment made to local entities for the 2024 financial year.
As tribal casinos have apparently seen an increase in revenue, many more consumers are turning to the online space to have their needs met.
A big reason for this is the appeal of alternative payment methods. Traditional casinos, including tribal ones, typically only accept fiat currency for their services, and this can put some users in a bind.
However, online options allow for alternative payment methods like cryptocurrency and the like. As Ricky Davies explains, many are looking to play poker using alternative payment methods, and this boosts their popularity.
Speaking of popularity, tribal casinos have clearly gained some in the last few years. Unlike commercial casinos, they do not have to disclose their earnings. However, the payments they make to local authorities can be an indicator of their financial situation. And if the most recent report is to be believed, things are looking up.
The 2021 price increase, which was the last one recorded, was credited to the post-pandemic gambling spike. The two years after saw its revenue decline, but 2023 seems to have been a comeback year of sorts.
The 23 tribal casinos in the state are run by its 12 tribes, and a breakdown of the number shows that some fared better than others. Notably, the Sault Ste. Marie tribe saw the biggest win, with an 11% year-on-year increase.
It was also the top performer from 2021 to 2024, with a 46.9% increase in payments during that period. The worst performer was the Pokagon Band tribe, with a 5.6% decrease in revenue for that period. It was also the worst performer for the 2021 to 2024 period, with a 24.2% decrease in payments.
2% of tribal casinos’ earnings are given to governmental bodies, and not only is this a metric on how well they are performing, but it also generates revenue for the states that can be used for public good projects.
Besides these increased revenue numbers, the Michigan Gaming Control Board also recorded several wins in the last year. One of these was the migration to a new audit management software that will be used moving forward.
It’s also begun a new net win inspection and a compliance inspection, both of which I expected to be completed soon.
All of these show that tribal casinos, in some cases, are doing quite well and even increasing their revenue.
At the same time, they are having to compete in an ever-changing gambling landscape that sees online gambling becoming just as popular, if not more popular, than in-person gambling.
Hopefully, these tribal casinos are able to weather the storm and continue to not just bring in revenue for themselves but also for the good of the state.