Casino revenues jump 13 percent statewide

NORTH COUNTY —— Fueled in part by increased numbers of slots, video machines and gaming tables at tribal casinos, gaming revenues have spiked by more than half a billion dollars for tribes in California, according to an American Indian gaming report released Tuesday.

While specific revenue figures for North County's five tribal casinos were not included in the report, the numbers of gambling machines and gaming tables at those casinos have increased by 4.6 percent and 11.2 percent, respectively, the report's author, Alan Meister, said Tuesday.

Meister explained that individual tribes are reluctant to release exact figures on their revenues. He gathered the data by using a combination of public information and insider sources.

Nongaming revenue at American Indian casinos, from such things as hotels, entertainment and restaurants, grew at an even faster pace, the report noted. In California, nongaming revenues increased from $510.6 million in 2003 to $609.6 million in 2004, a 19.4 percent spike.

The annual report, released Tuesday by Los Angeles-based Analysis Group Inc., shows that tribal casino revenues statewide grew by 13.3 percent in 2004, increasing from $4.69 billion in 2003 to $5.32 billion.

Much of that jump occurred because the number of slot machines and gaming tables in tribal casinos increased, according to the report. While the number of California tribal casinos remained unchanged at 54 between 2003 and 2004, the number of slots and other gaming machines increased from 55,603 to 58,089. The number of tribal gaming tables showed an even bigger spike, having grown from 1,557 in 2003 to 1,820 in 2004 —— a 16.9 percent increase.

North County's five tribal casinos, on the Pala, Pauma, Rincon, San Pasqual and La Jolla reservations, mirrored the statewide growth. The five casinos saw their collective number of gaming machines increase from 5,578 in December 2003 to 5,840 in December 2004 —— a 4.7 percent increase. Meanwhile, the number of gaming tables at those same casinos increased from 151 to 168, an 11.2 percent increase.

Individual figures were not available Tuesday for any increases in the number of slots and gaming tables at Pechanga Resort & Casino, near Temecula. However, the casino's Web site states that there are 2,000 slot machines and 126 gaming tables at the resort.

Leaders of tribes that operate large North County casinos could not be reached for comment Tuesday.

American Indian gaming in the United States has become a huge industry over the last decade and a half. In 1988, it generated $121 million. Revenues grew at an average annual rate of 37 percent, hitting $19 billion in 2004, according to Tuesday's report.

With 28 percent of that $19 billion, California continues to lead the pack in revenues from tribal gaming. Connecticut runs a distant second, with 11.7 percent of the total.

The revenue streams at California tribal casinos are expected to continue to grow, to a large extent due to the population increase in the state and some Californians' choices in leisure activity, Meister said.

"Research shows a higher propensity to gamble in California than in most other states," he said.

Increasing revenues for American Indian casinos translate to more investment for local communities, as tribes take that money and reinvest it in the community, a spokeswoman for the California Tribal Business Alliance said Tuesday.

"The Viejas tribe has a bank in Borrego Springs and has recently purchased a couple of radio stations in the San Diego area," said Alison Harvey.

The Pala Casino Resort Spa complex, for example, employs 1,900 people and has a tribal policy of only buying supplies for the business from local vendors, whenever possible, she said.

The Pauma Band of Mission Indians plans to build a major resort-casino in Pauma Valley. The casino should open in 2007, an attorney for the tribe said in a recent interview.

Once that 2,000-slot casino opens, it should provide an even bigger boast to the local economy, Harvey said.

"Another casino is going to bring jobs and more regional spending," she said.

Contact staff writer William Finn Bennett at (760) 740-5426, or wbennett@nctimes.com.