Data Show Tribes Have Big Economic Impact on States

Tribal gaming in Oklahoma and Arizona have had major impacts on the economies of both states. The Cherokee Nation contributes $3.04 billion a year to the Oklahoma economy and Arizona gaming tribes have contributed almost $2 billion since 2004.

Data Show Tribes Have Big Economic Impact on States

The gaming tribes of Oklahoma and Arizona have outsized economic impacts on their respective states, recent figures released by tribes have shown.

The Journal Record reports that the Cherokee Nation contributes $3.04 billion a year to the Oklahoma economy and the Daily Independent reports that, according to the Arizona Department of Gaming (ADG), Indian gaming has contributed almost $2 billion since 2004.

On April 18 Cherokee Nation Principal Chief Chuck Hoskin Jr. announced the results of an economic report the tribe had commissioned.

He declared, “From job creation to infrastructure development, Cherokee Nation plays a vital role in driving the region’s economic growth and prosperity. The economic impact of Cherokee Nation in Oklahoma cannot be overstated. Through our businesses, educational offerings, healthcare expansion and community partnerships, we continue to enrich the Oklahoma economy and enhance the quality of life of our citizens, as well as our friends and neighbors.”

Hoskin was speaking at a forum breakfast at the University of Tulsa (UT) attended by business executives, educators, and state, county and local officials.

The report was done by Dr. Russell Evans, principal of the Economic Impact Group and Executive Director of Economic Research and Policy Institute at Oklahoma City University.

The Cherokees’ Covid-19 relief funding also generated another $2.07 billion in economic impact on the state.

According to Evans, “As the Oklahoma economy began to emerge from the long shadows of the pandemic, the Cherokee Nation was a leader in growing opportunities in Northeast Oklahoma. Cherokee Nation kept payrolls full, provided needed hazard pay to frontline workers and expanded trade with thousands of vendors.”

He added, “The significant economic influence of the tribe was supplemented by the nearly $1.5 billion in pandemic relief funds allocated in the state, with more than half of those funds providing direct assistance to Cherokee citizens and payroll to employees.”

The Cherokees also contributed to or indirectly supported nearly 19,000 jobs and $975 million in wages in the state. The tribe directly spent over $.196 billion in purchases, operations and activities.

UT President Brad R. Carson commented, “As a proud Cherokee myself, we at UT are grateful for the significant impact the Cherokee Nation has on the Oklahoma economy. The success of the Cherokee Nation makes Tulsa and our state stronger and more successful too.”

The Cherokee Nation is the largest tribal government in the U.S.

In Arizona, tribal gaming has set records beginning in the first quarter of this year. The tribes are required by their state tribal gaming compacts to contribute a percentage of Class III gross revenue to state, county and municipal government via the Arizona Benefits Fund.

The third quarter of FY 2023 generated $27,607,589 for the Arizona Benefits Fund, the department reported. This is a nearly 20 percent increase from a year ago.

ADG public information officer Max Hartgraves commented, “There’s a lot of benefits from tribal gaming,” adding, “That $2 billion mark just further highlights it.”

There had been concerns that when online sports betting was allowed that bettors with phones would abandon brick and mortar casinos. That has not happened.

ADG Director Jackie Johnson declared, “The state of tribal gaming in Arizona continues to impress, with a near 20 percent increase in contributions to the state when compared to quarter three of FY 2022.” Johnson continued, “Since 2004, tribal gaming has contributed over $1.98 billion to the state and its cities, towns and counties. I look forward to seeing the quarter four release for FY 2023, which will undoubtedly see Arizona surpass a historic milestone of $2 billion in total tribal contributions.”

Hargraves noted that there has been growth in both tribal and commercial gaming: “It’s clear that we’ve seen growth in the gaming industry in Arizona since the amended compacts were passed and sports betting has been legalized.”