Report finds slowing growth in gambling at Indian casinos
While gambling at Minnesota's tribal casinos is still growing, the growth rate slowed in 2004, according to an annual industry report.
The state slipped from third to fourth nationally in tribal casino revenues, according to the annual Indian Gaming Industry Report. Overall revenues grew 1.2 percent in 2004, down slightly from the previous year.
In all, Minnesota's tribal casinos pulled in $1.3 billion from slot machines and blackjack tables in 2004. That's about 7 percent of the gambling revenue from all tribal casinos in the country.
Alan Meister, an economist with the Analysis Group, a national consulting firm, wrote the report. He said it's not clear if the state gambling market has reached a saturation point - but said greater growth could have been limited by the failure of gambling proponents to build a state-tribal casino in the Twin Cities, which might stimulate new revenue.
Over the past several years, proponents including Gov. Tim Pawlenty have pushed for either the state-tribal casino, a combination race track and casino at Canterbury Park or some amalgam of both. Efforts have stalled amid strong opposition from some state lawmakers.
While Meister said a new casino would to some extent be competing for the same dollars with existing facilities, it would also be likely to stimulate a gambling market that's grown dormant in recent years.
"The question is how much new dollars is going to be generated,'' he said.
John McCarthy, executive director of the Minnesota Indian Gaming Association, said the 2004 numbers are a sign that there's not much room for growth in the gambling market.
"I definitely think we are getting into somewhat of a saturation point. It's been noticeable that it's been sort of leveling off,'' he said.
McCarthy's group represents several Twin Cities-area Indian tribes who oppose new casinos on the grounds that they would invade their own customer bases.
Arizona moved past Minnesota into third place on the nationwide list, after it experienced its first full year of operations under new gambling compacts that allowed its tribes to increase slot machines and add blackjack at their casinos, the report said.
