Indian Gaming - Market Analysis

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Indian Gaming - Market Analysis

The Indian Gaming Market in California has experienced a steady annual growth rate of approximately 2.6% annually. The most recent statistic from 2015 states the market value of the industry is $7,880,000,000. The primary players operating in California include Pechanga Casino, Cache Creek Casino and San Manuel Casino. The industry is undergoing $1,000,000,000 in expansions as of 2017.

Market Size and Growth

The Indian Gaming Industry in California generated more revenue than any other state in 2015. The most recent report, released in 2016, analyzes data from 2015. Since 2010, two to three tribal casinos open every year. Economists are expecting this growth to stay strong at approximately 2.6% annually. As of 2015, the industry in California is worth $7,880,000,000. That accounts for 26.4% of the United States market value.

Although I was unable to uncover a published projected market value from 2016 to 2018, I was able to triangulate the information. Assuming the industries' revenue growth rate of 2.6% stays consistent, I was able to calculate projected annual market values.

2015 $7,880,000,000 + 2.6% ($204,880,000) =
2016 $8,084,880,000 + 2.6% ($210,206,880) =
2017 $8,295,086,880 + 2.6% ($215,672,259) =
2018 $8,510,759,139 Current US Market Value

Primary Players in the Industry

I have identified the key players in the California Indian Gaming Industry. I made the determination based on amount of slots and table games along with the square footage of their properties. The five largest players are:

3,800 Slot Machines
154 Table Games
54 Poker Games
188,000 Square Foot Property
Revenue Recieved By Tribe Since Inception: $18,594,120

2,000 Slot Machines
80 Table Games
15 Poker Games
310,000 Square Foot Property
Revenue Recieved By Tribe Since Inception: $11,506,225
2,200 Slot Machines
87 Table Games
13 Poker Games
650,000 Square Foot Property
Revenue Recieved By Tribe Since Inception: $35,375,896

3,000 Slot Machines
82 Table Games
59 Poker Games
210,000 Square Foot Property
Revenue Recieved By Tribe Since Inception: $24,695,189

2,800 Slot Machines
105 Table Games
200 Poker Games
144,000 Square Foot Property
Revenue Recieved By Tribe Since Inception: Unavailable

Development & Expansion

In 2017, California Indian Casinos spent of $1,000,000,000 expanding their operations. Pechanga Hotel & Casino spent $285,000,000 on expansions. Sycouan Casino invested $226,000,000. The Pala was the third largest investor spending $170,000,000. Tachi Palace Hotel & Casino constructed a $23,500,000 entertainment center on their California property.

Despite push backs from the local government, the Wilton Rancheria Indian Tribe is set to relieve land to construct a revenue generating gaming operation of their own.

Conclusion

The Indian Gaming Industry in California is valued at approximately $8,510,759,139. It is expected to see continued and steady growth through the foreseeable future. The key players in the market are Pechanga Resort & Casino, Barona Resort & Casino, Pala Casino Resort & Spa, Viejas Casino & Turf Club and Thunder Valley Casino & Resort. As of 2017 over $1,000,000,000 was spent on developments and expansions in the industry.


Sources
Sources