Study says tribal casinos produce $7.5 billion benefit to state economy

The Chumash Casino Resort, a tribal-run casino near Solvang, is the only Indian-gaming facility in the Ventura-Santa Barbara County region.

Photo by Jim Bartsch for the Chumash Casino, Courtesy photo

The Chumash Casino Resort, a tribal-run casino near Solvang, is the only Indian-gaming facility in the Ventura-Santa Barbara County region.

SACRAMENTO — The California Nations Indian Gaming Association released an economic report Wednesday that finds tribal government gaming operations account for $7.5 billion in economic benefits to California and support more than 52,000 jobs statewide.

Conducted by Beacon Economics, an independent economic and consulting firm, the report surveyed 2010 economic data from 13 of the approximately 60 gaming tribes across California. Those studied included a cross-section of large and small casinos in urban and rural markets with a range of amenities such as hotels, restaurants, retail businesses and entertainment venues.

Of the 52,000 jobs, 30,000 come from operations within the casinos. The study estimates tribal gaming creates an additional 22,000 jobs in the broader economy, putting the industry on par with the state's non-residential construction industry, which accounts for about 53,000 jobs and the apparel manufacturing industry, with 56,500 jobs.

Because the casinos are located on sovereign, federally recognized Indian reservations, the tribes do not have to pay income taxes on revenues derived from casino operations.

Still, the report says that Indian gaming activities generate about $465 million in tax revenues to the state through income and payroll taxes paid by employees and through sales and property taxes from off-reservation facilities.

Speaking at a news conference, CNIGA chairman Daniel Tucker said it was time for the state's Indian gaming operations to release a public report card, which is available at http://www.cniga.com.

"California tribes made a promise to the people of our state," said Tucker. "We promised to our people, our land, and our government that we will provide jobs for our people and for our neighbors."

More than 80 percent of casino employees are non-tribal members, according to the report, and earn an average salary of $33,400, usually with benefits, more than double the average salary of California workers in the hospitality industry. Economists estimate the tribal gaming industry produces $1.4 billion in direct wages for its employees.

Christopher Thornberg, founding partner of Beacon Economics in Los Angeles, said that Indian gaming contributes substantially to the California tax base.

"In a very real sense, the ability for Californians to enjoy these sort of entertainment options right here in the state means that those dollars, which would otherwise go over the border into Nevada, are instead staying here," said Thornberg. "These operations really do contribute in a very significant way to the overall California economy."

The Chumash Casino Resort, a tribal-run casino near Solvang, is the only Indian-gaming facility in the Ventura-Santa Barbara County region. It employs more than 1,700 people.

Ron Anderson, president of the nearby Buellton Chamber of Commerce, said the casino has been a generous member to the community by donating money to events put on by the chamber and helping fund the construction of a new football field for the local high school.

Equally important, Anderson said, is that the Chumash Casino is a magnet for tourism. The casino also has been a key player in marketing to its guests Buellton's wine industry. In addition, he noted that passers-by on their way to the casino have helped keep Buellton's economy stable even during the recession by patronizing the city's seven gas stations and various fast-food restaurants. "To me, it's been a positive in a down economy," said Anderson. "We have a lot of wine tourism, and they're helping us market it and that's great."

The CNIGA news conference Wednesday also was used to celebrate the ways Indian gaming has worked to give back to communities. The study cited that many California gaming tribes donate millions of dollars each year to fund cancer research and combat homelessness, for example.

Funds generated from gaming also are shared among non-gaming tribes in the state, with about $818 million distributed since the first tribal-gaming compacts were signed in 1999.

© 2012 Ventura County Star. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Comments » 46

WantedMan writes:

My guess is that the Gaming Association did not study the economic impact of gambling losses on the State of California. For example, what would be the economic impact to the State if the money were invested, or given to charity, instead of lost gambling?

XIV writes:

It would be great if the Chumash owned land in Ventura County. Every few months or so I drive to the great teepee in Santa Ynez and spend some wampum at the tables and restaurants. It's a nice mini vacation and it's not far from home.

fatnsassy writes:

"The study cited that many California gaming tribes donate millions of dollars each year to fund cancer research and combat homelessness, for example."

Note to City of Ventura: "many California gaming tribes donate millions of dollars each year...and combat homelessness."

cjr writes:

Unless it is money coming in from out of state, it is just dollars recirculating within the state. While one can cite how much money is spent in the casino and the facilities surrounding the casino and extrapolate that the casino payroll generates X jobs in the non-casino community, no one can state with any certainty what percent of that money is from out of state and thus is in addition to the state's internal business structure.

In addition, an annual income of $33,000 will not sustain a family in California. To compare it to the hospitality industry where many jobs are part time, makes a substandard income look better than it really is. Not to put down the good folk of Mississippi, but while $33,000 p/a might be enough to minimally support a family in some of the small towns in that or some other states, it just can't support a family in California. If my memory serves me correctly, a single mother with two kids earning $33,000 a year would qualify for Earned Income Credit or in other words, federal welfare. While it may be more than the hospitality industry pays on average, that sort of like saying it's better to have tuberculosis than it is to have lung cancer.

LeftOxnard writes:

Glad for The Soverign Nation........

rebel123 writes:

Glad the Sovereign Nations are taking from the white man now. It's their turn.

pilgrim2014#403694 writes:

in response to WantedMan:

My guess is that the Gaming Association did not study the economic impact of gambling losses on the State of California. For example, what would be the economic impact to the State if the money were invested, or given to charity, instead of lost gambling?

Lol- what if the sky were green?
What if monkeys could fly?

This is ridiculous. The economic impact of gambling losses on the State of California is 0.0.

pilgrim2014#403694 writes:

in response to simiwayne:

(This comment was removed by the site staff.)

what a fantastic shortcut to thinking .....

ca93001 writes:

in response to rebel123:

Glad the Sovereign Nations are taking from the white man now. It's their turn.

They're not taking it, we are giving it to them. And for all that still want to comment on how terrible we are for taking over this country, that has been happening since the beginning of man, throughout time, all over the world. And it will continue.

PleasantValley writes:

Fox, hen house.

CHAOS1111 writes:

in response to XIV:

It would be great if the Chumash owned land in Ventura County. Every few months or so I drive to the great teepee in Santa Ynez and spend some wampum at the tables and restaurants. It's a nice mini vacation and it's not far from home.

I have good news for you... the original site of the Sa'aqtik'oy (Saticoy) Chumash village has been returned. Please click on this link to see what my friend Julie Tumamait (Chumash Elder from Ojai) is doing... and FUNDING is needed, so spread the word..!
http://www.youtube.com/watch?v=ugNz1f...

Rob_Dawg writes:

Gambling is consumption not production. This is why California is in such desperate straights. At every turn production is discouraged and consumption is encouraged.

guy133 writes:

Thank god for casinos. How else could natives possibly earn a living?

cjr writes:

in response to Rob_Dawg:

Gambling is consumption not production. This is why California is in such desperate straights. At every turn production is discouraged and consumption is encouraged.

Exactly and this public relations spin doesn't deserve the space the star devoted to it.

blackfoot writes:

How much of this goes to the schools as promised? I truly believe these Indian casinos are more corrupt than the corporates in NJ, NV and LA. The fact that they land in residential neighborhoods makes me sick.

Rob_Dawg writes:

in response to cjr:

Exactly and this public relations spin doesn't deserve the space the star devoted to it.

One of the Star's largest clients are the Indian Gaming interests. Draw your own conclusions.

Don't even get me started on the massive housing miss Beacon promulgated during the great bust. The Star, the casinos and Beacon deserve each other. We do not.

TheCrusader writes:

Tony Strickland has gotten a lot of money donated to him from Indian Gaming Casinos, probably part of his "family values" crusade.

abovetheclouds writes:

in response to guy133:

Thank god for casinos. How else could natives possibly earn a living?

That wasn't even funny.

"More than 80 percent of casino employees are non-tribal members"
Reading comprehension, guy.

Rob_Dawg writes:

in response to TheCrusader:

Tony Strickland has gotten a lot of money donated to him from Indian Gaming Casinos, probably part of his "family values" crusade.

I look forward to the evidence and of course any equivalent evidence concerning past or current opponents.

The Indian fronted gambling interests cover all the bases.

smacktalk writes:

in response to fatnsassy:

"The study cited that many California gaming tribes donate millions of dollars each year to fund cancer research and combat homelessness, for example."

Note to City of Ventura: "many California gaming tribes donate millions of dollars each year...and combat homelessness."

That's why there are no new shelters and not enough $$$$$$$ to keep them open. You be smokin too much peace pipe.

smacktalk writes:

More taxes on the Native Americans! It The American way isn't it.

smithjc#403367 writes:

in response to rebel123:

Glad the Sovereign Nations are taking from the white man now. It's their turn.

taking america back, one nickel at a time.

smithjc#403367 writes:

in response to abovetheclouds:

That wasn't even funny.

"More than 80 percent of casino employees are non-tribal members"
Reading comprehension, guy.

maybe that's because there aren't enough tribal members left to take all the jobs. all of the casinos in california that i've looked at have preferential hiring for tribal members. of course, that could also be because they are using some of their earnings to send tribal members to school so they can be doctors, lawyers, etc and don't need to work in the casino.

smithjc#403367 writes:

in response to thin_skin:

(This comment was removed by the site staff.)

actually they do talk about it (distribution to the tribal members). i've been aware of that for years. i also fully support the concept of all the tribal members sharing in the profits of the tribal enterprise.

guy133 writes:

in response to abovetheclouds:

That wasn't even funny.

"More than 80 percent of casino employees are non-tribal members"
Reading comprehension, guy.

I was commenting more on the fact that the Natives get special treatment to open casinos. Why should they get special laws allowing them to do something nobody else can do?

Essentially they've been given a license to do business in a market with no competition.

MyOpinion writes:

in response to guy133:

I was commenting more on the fact that the Natives get special treatment to open casinos. Why should they get special laws allowing them to do something nobody else can do?

Essentially they've been given a license to do business in a market with no competition.

And pay no corporate taxes. The payroll taxes don't come close to making up for it.

MyOpinion writes:

in response to smithjc#403367:

actually they do talk about it (distribution to the tribal members). i've been aware of that for years. i also fully support the concept of all the tribal members sharing in the profits of the tribal enterprise.

Typical liberal position, distribution of wealth, so people don't have to work if they don't want to.

1ndependenT (Inactive) writes:

Unbelievable the Hate & Ignorance i see. Like Caucasins decent has ever been the opressed ever in history. Just makes me laugh how a few or quick to jump on the ignorance wagon.

Corruption and Greed and wealthy individuals wanting control and more is Americas downfall. While we sit here bickering back and fourth blame game. When the economy hits the fan. Marshal law sets into place. We are ALL in trouble.

MyOpinion writes:

in response to 1ndependenT:

Unbelievable the Hate & Ignorance i see. Like Caucasins decent has ever been the opressed ever in history. Just makes me laugh how a few or quick to jump on the ignorance wagon.

Corruption and Greed and wealthy individuals wanting control and more is Americas downfall. While we sit here bickering back and fourth blame game. When the economy hits the fan. Marshal law sets into place. We are ALL in trouble.

Hate & Ignorance? Maybe we should call it what it is, reality.

I grew up a dirt poor "Caucasian" and when it came time to go to college, I paid my way. Other people of non-Caucasian decent who had more money than me, got a free education.

My sons of Caucasian decent had to pay (actually I paid the bulk of it) full fare for college while other wealthier families of non-Caucasian decent payed less (sometimes nothing) for the same education.

And don't call me a racist, I have zero ill will toward anyone of any race. I just believe in absolute fairness for all humans.

MyOpinion writes:

in response to MyOpinion:

Hate & Ignorance? Maybe we should call it what it is, reality.

I grew up a dirt poor "Caucasian" and when it came time to go to college, I paid my way. Other people of non-Caucasian decent who had more money than me, got a free education.

My sons of Caucasian decent had to pay (actually I paid the bulk of it) full fare for college while other wealthier families of non-Caucasian decent payed less (sometimes nothing) for the same education.

And don't call me a racist, I have zero ill will toward anyone of any race. I just believe in absolute fairness for all humans.

And I purposefully used your word "decent" instead of the correct "descent".

1ndependenT (Inactive) writes:

I respect your opinion and your views. Thanks for the grammer check. Freedom or speech. Something i feel this country is slowly loosing. Everybody goes through there own struggles and views in life. Not everybody is dealth with the same hand in life My point is from my views. Caucasians have never been the oppressed looking back at history. Im not no history major. But from what i do know. I might be wrong. Correct me if i am wrong.

Race etc or the masses has nothing to do with the ecomony and both Reps, Dems and Congrsss stalling putting politics and there corp sponers first. Knowing how fragile this economy is. While we the people fight back and fourth and a few bring racial tensions in the mix. The real blame goes to those doing nothing about it. My opinion is we are into much debit and sad to see to see both parties bickering back and fourth and congress on there lavish vacations. While we the American people and our kids wait patiently not knowing what the future might bring. Hope, Family, Kids and Prayer Sir. God Bless.

1ndependenT (Inactive) writes:

^Grammer Check^. Im at work, hahaha... : )

guy133 writes:

I'm with MyOpinion. I don't love the fact that Natives get special treatment for operating casinos. But it has nothing to do with them being Native, it has to do with fairness.

Also, it could be argued that caucasians ARE oppressed in some ways, because we don't qualify for special tax breaks, or admissions quotas or the right to operate casinos without any competition.

JCInVC writes:

in response to guy133:

I was commenting more on the fact that the Natives get special treatment to open casinos. Why should they get special laws allowing them to do something nobody else can do?

Essentially they've been given a license to do business in a market with no competition.

They are in a sort of grey area Constitutionally since they're not part of the USA, but not a foreign nation either. They were originally seen as sovereign powers, so not subject to the laws of the states or feds and we had to have treaties to interact with them (which has changed over the years).

Now? Probably moreso white guilt over slaughtering their ancestors and shoving them onto crappy land so we could steal their original land for the original expansion of the US.

smithjc#403367 writes:

in response to MyOpinion:

Typical liberal position, distribution of wealth, so people don't have to work if they don't want to.

to borrow from our resident bleeder (we all know who he is) rotflmao. to call me a liberal tells me you must be really new here, or have just never read any of my posts. i'm a hardcore conservative (not to the point of being a neo-nazi or skinhead type of person, but i am a staunch supporter of capitalism, personal responsibility, the second amendment, and so on).

the reason that i support what the tribes do in distributing their income among themselves is that, for many bands of native americans, it has been their tradition since "time began". they all shared in the spoils of the hunt, the nuts, berries and fruits gathered. for them it has been a way of life. they do this voluntarily.

now, what i DO object to(quite strenuously) is the STATE (using this term to encompass muni, county, state and federal "gubmits") taking from producers (wage earners) against our will and redistributing to the non-producers who don't want to work.

smithjc#403367 writes:

in response to guy133:

I was commenting more on the fact that the Natives get special treatment to open casinos. Why should they get special laws allowing them to do something nobody else can do?

Essentially they've been given a license to do business in a market with no competition.

even though these lands are within the geographic boundaries of the state of california, they are sovereign lands belonging to the native band living and working there. under federal law, they are considered to be sovereign nations, independent of the state. would you presume to tell mexico or canada what type of activities they can have on their lands? or even tell another u.s. state what they can and can't do?

smithjc#403367 writes:

in response to MyOpinion:

And pay no corporate taxes. The payroll taxes don't come close to making up for it.

refer to my response to guy133 on the same comment to which you are replying. in that comment i refer to the sovereign nation status of these native lands. so, re corporate taxes, that would be the same as imposing corporate taxes on companies in other countries.

1ndependenT (Inactive) writes:

in response to guy133:

I'm with MyOpinion. I don't love the fact that Natives get special treatment for operating casinos. But it has nothing to do with them being Native, it has to do with fairness.

Also, it could be argued that caucasians ARE oppressed in some ways, because we don't qualify for special tax breaks, or admissions quotas or the right to operate casinos without any competition.

Guy, im no American indian. Im Independent : ). I try to see things in the big scope. Not a lil one. But do you know your history and what the indians been through right or wrong. There has to be a minute of soul searching the truth. Even if you dont want to believe or portray ourselves as the good guys. I personally judge and treat people individually after getting to know them and see where they are at. I dont think its special treatment. Corruption even lives with in there own people. Corrutpion has no race, religion or gender.

smithjc#403367 writes:

to be completely honest, i wish that i lived closer to nevada (ok, to be REALLY honest, IN nevada or just about any other state {except for illinois, maryland, taxachussets, and so forth, basically all the states with serious restrictions on 2nd amendment rights and high taxes}) so it would be easier for me to play in casinos where NO money went to california. but since i currently don't, i'll play at the native casinos.

1ndependenT (Inactive) writes:

in response to 1ndependenT:

Guy, im no American indian. Im Independent : ). I try to see things in the big scope. Not a lil one. But do you know your history and what the indians been through right or wrong. There has to be a minute of soul searching the truth. Even if you dont want to believe or portray ourselves as the good guys. I personally judge and treat people individually after getting to know them and see where they are at. I dont think its special treatment. Corruption even lives with in there own people. Corrutpion has no race, religion or gender.

"because we don't qualify for special tax breaks, or admissions quotas or the right to operate casinos without any competition"

I agree with you in some points. But whos fault is it. Life is no pefect and believe me if you walk in the other pesons shoes you would see 10x more, Why. Instead of building up this hate and blame game and put things in our own hands. Play judge and jury. Why is our Gov. Both Rep, Dems and Congress not putting politics to the side and there Corps they cater too. Wake up and work for the American people. WEL-FAIR REFORM,SOCIAL SECUIRTY, AFFORDABLE HEALTHCARE, EDUCATION, THE BORDER, IMMIGRAITON, THE SYSTEM AND COURT OF LAW, CORRUPTION, DRUGS, JOBS, AFFORDABLE JOB TRAINING AND PROGRAMS. I CAN KEEP GOING AND MOST IMPORTANT CORRUPTION. THE PEOPLE FIRST AMERICA FIRST.

guy133 writes:

in response to 1ndependenT:

"because we don't qualify for special tax breaks, or admissions quotas or the right to operate casinos without any competition"

I agree with you in some points. But whos fault is it. Life is no pefect and believe me if you walk in the other pesons shoes you would see 10x more, Why. Instead of building up this hate and blame game and put things in our own hands. Play judge and jury. Why is our Gov. Both Rep, Dems and Congress not putting politics to the side and there Corps they cater too. Wake up and work for the American people. WEL-FAIR REFORM,SOCIAL SECUIRTY, AFFORDABLE HEALTHCARE, EDUCATION, THE BORDER, IMMIGRAITON, THE SYSTEM AND COURT OF LAW, CORRUPTION, DRUGS, JOBS, AFFORDABLE JOB TRAINING AND PROGRAMS. I CAN KEEP GOING AND MOST IMPORTANT CORRUPTION. THE PEOPLE FIRST AMERICA FIRST.

What hate?

whereyoufromdude writes:

Interesting that the article points out how much "non-tribal" employees make ($30,000), but does NOT point out that tribal members, depending on the tribe rake in a lot of money from the gaming. In a bad year, a tribal member can be paid $250,000, in a good year, $500,000 plus.

Huskerfan writes:

in response to TheCrusader:

Tony Strickland has gotten a lot of money donated to him from Indian Gaming Casinos, probably part of his "family values" crusade.

As usual you have zero credibility and no proof.

In 2012 B Obama received more from Indian gaming than any other politician:

http://www.opensecrets.org/industries...

Democrats received about $400,000 more overall than Republicans:

http://www.opensecrets.org/industries...

For once, just once, try to do a little bit of research before spewing.

Lets_Be_Truthful writes:

One case where separate but equal does not apply.

pilgrim2014#403694 writes:

in response to simiwayne:

(This comment was removed by the site staff.)

Ok, I'll bite. In the interest of good communication let me say that I may have jumped the gun and misunderstood what you were trying to say. To clarify, as I see it, we are talking about people who gamble of their own free will and you are trying to say that gambling is some kind of tax on them. I don't get that especially from someone such as yourself who from what I can tell would purport to be more of a proponent of personal responsibility. Fill me in, I'm all ears.

ssminnow writes:

in response to simiwayne:

(This comment was removed by the site staff.)

More like a tax on the stupid (which in turn are poor) and the wealthy (who have money to burn, which may or may not be smart).

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