Oklahoma casinos’ 2014 haul: $3.95B

A map showing major American Indian-owned casino hotels near Arkansas' border.
A map showing major American Indian-owned casino hotels near Arkansas' border.

Oklahoma’s American Indian-owned casinos saw revenue growth in 2014 twice as great as the tribal industry average and saw nongambling revenue increase at an even stronger pace, according to a report released today.

Five Oklahoma tribes run gambling operations, including casino hotels, close to Arkansas’ western border.

Arkansas has no tribal-owned gambling, but betting is allowed on greyhound races at Southland Park in West Memphis and thoroughbred races at Oaklawn Park in Hot Springs. State law allows gambling on electronic devices at the racetracks that are similar to devices offered at out-of-state casinos.

Indian-owed gambling operations in 2014 encompassed 489 gambling facilities in 28 states operated by 243 tribes, according to Casino City’s Indian Gaming Industry Report.

Indian gambling produced $28.9 billion in 2014 revenue, a new record and an increase of nearly 2 percent for the year, up from a less than 1 percent gain in 2013. Indian casinos’ revenue also outpaced the commercial casino sector in 2014, which saw a 2 percent drop in revenue for the year.

Indian casinos now make up 43.5 percent of the market, just below the 44.2 percent controlled by commercial casinos. Racetrack casinos have a 12.3 percent share.

Indian-owned casino operations across the nation have added hotels and other nongambling amenities to capture more customer dollars.

Nongambling revenue stood at $3.8 billion for 2014, up 5 percent to an all-time high and more than double the percentage gain of gambling revenue.

Alan Meister, an economist with Nathan Associates Inc., the report’s author, said Oklahoma gambling operations experienced strong gains in 2014, taking advantage of their location near states like Arkansas and Texas, which have no or limited gambling options.

He added that the addition of casino hotels and other entertainment amenities along Oklahoma’s border with Arkansas make it easier for the tribes to attract and keep customers in their facilities longer and increase revenue.

In 2014, Oklahoma ranked second nationally for total revenue with $3.95 billion, a nearly 5 percent gain and more than twice the national tribal average. Oklahoma trails California, which booked $7.3 billion in revenue. Combined, the two states rake in 39 percent of all revenue generated by Indian-owned operations.

Oklahoma had 126 gambling facilities in 2014, up two from 2013 and the most in the nation, though many of them are small.

The Oklahoma operations are run by 31 tribes and in total had 70,219 electronic games, an increase of 1.2 percent over 2013. Oklahoma has the most electronic games in the nation in 2014 — elbowing out California’s 69,000 electronic games.

Nongambling revenue for Oklahoma was $637.2 million for 2014, up nearly 10 percent from the year earlier. Oklahoma ranked third in the percentage gain of nongambling revenue, behind Wisconsin and South Dakota, which both had significantly less revenue in the category.

Kelly Way, associate professor of hospitality innovation at the Dale Bumpers College of Agricultural, Food and Life Sciences at the University of Arkansas at Fayetteville, said the casino hotels along the Oklahoma-Arkansas border are doing their best to deliver a Las Vegas-style experience.

“They’re really trying to up their game and they’re succeeding,” said Way.

She noted that the advertising for the operations is characterized by warmth — presenting a quality entertainment experience, with gambling, dining, nightlife and lodging — all at an affordable price and without a lot of travel.

“They’re telling their customer they can get away and relax, even if it’s just for a night,” she explained.

In 2015, the Cherokee Nation completed a $80 million casino hotel in Roland on the Arkansas border along Interstate 40 near Fort Smith. The six-story hotel has 120 rooms, and the casino has 850 electronic games along with an assortment of table games.

The tribe said in late January that it’s building a stand-alone casino in Grove, Okla. The new location, northwest of the Arkansas border, will be nearly 40,000 square feet and will include 400 electronic games, a restaurant, a full-service bar, a live music venue and a dance floor. Cherokee Nation also is building a casino hotel as part of a large-scale retail development close to the Arkansas border in Tahlequah.

In West Siloam Springs, Okla., the tribe operates Cherokee Casino & Hotel, which was upgraded in 2010 and now has 1,500 electronic games, table games and a 140-room hotel.

Near Fort Smith, the Choctaw Nation expanded and upgraded the gambling floor at its Pocola casino on Interstate 540 in 2012 and added a 118-room hotel in 2013.

The Eastern Shawnee of Oklahoma opened the Indigo Sky Casino, which includes a hotel, in Wyandotte, Okla., in 2012.

The Wyandotte Nation is in the midst of a multistage renovation of its its Wyandotte Nation Casino in Wyandotte, in the northeast corner of Oklahoma. The project is focused on adding a variety of entertainment options.

In Quapaw, Okla., the Quapaw Nation operates the Downstream Casino Resort, which opened in 2008 and after a 2012 expansion has 374 hotel rooms in two tower buildings. The casino is in the northeast corner of Oklahoma near the Missouri and Kansas borders.

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