The amounts of money that were promised to Arizona voters in 2002 when they amended the state constitution to allow Indian gaming in the state haven’t materialized, but the numbers are still impressive. They add up to about a year per student.
A report by the Arizona Republic showed that district and charter schools received $44 million in 2015. The largest portion of that, $17 million went to instructional improvement programs, the next largest chunk, teachers’ salaries, account for $17 million. In some schools that has led to smaller classes. Each school spends the money as it chooses, within limits.
The money collected by the state is about the same as it was in 2006 when 15 tribes operated 22 casinos with 12,354 slots and 165 poker tables. Eleven years later 17 tribes operate 24 casinos with 15,284 slots and 222 poker tables. Arizona has the fifth largest Indian gaming market in the nation.
State officials predicted an annual revenue stream of up to $102 million, with half of the money earmarked for education. However, those levels have only been reached three times.
Those figures are in line with national data, which show that the Indian gaming industry’s growth has largely matured.
And despite additional casinos, more games and raised betting limits, the profitability in the last ten years hasn’t changed much. The money involved doesn’t really affect the school budget much, which was $3.5 billion last year.
This could change since Governor Steve Ducey is trying to renegotiate the state tribal gaming compacts with the state’s gaming tribes and increase the percentage that the state gets. That’s why he was willing to negotiate an end to the state’s battle with the Tohono O’odham over its Glendale casino—which the state fought for many years.
Last week Ducey issued a statement that included this: “I am eager to continue meeting with gaming tribes to discuss how we can modernize the tribal-state gaming compacts and create positive economic opportunities for all Arizonans.”
One study has suggested that Arizona could boost revenues by lifting limits on the number of games—and suggested that Arizona has harmed its market by limiting the supply to meet demand.
There is some speculation that Ducey may have this in mind as he negotiates the new compacts.
