As reported by: San Bernardino County Sun
Indian casino expansions and the proximity of residents living near reservations pushed the revenues of tribal gaming up 13 percent, four times faster than gambling in Las Vegas or on Mississippi riverboats.

Tribal casinos raked in $14.5 billion in the fiscal year ending in 2002, compared with $12.8 billion in 2001, according to new data from the National Indian Gaming Commission. Nearly all the growth came as tribal casinos expanded.

The Morongo Band of Mission Indians near Banning and the Cabazon Band of Cahuilla Indians near Indio are building bigger casinos. The San Manuel Band of Serrano Mission Indians near San Bernardino also plans a large casino expansion.

Only one Indian casino was added last year.

Meanwhile, commercial casinos and racetracks nationwide including Las Vegas; Atlantic City, N.J.; and boats along the Mississippi and Ohio rivers saw revenues rise by only 3 percent last year to $26.5 billion.

Figures for each state have not been released, but those numbers likely will play a role in Gov. Gray Davis' compact renegotiations with the state's Indian tribes and how much money tribes will give to revenue-sharing funds.

The state has estimated that Indian casinos make $5 billion a year from gambling, while tribes say it is closer to $3 billion.

"That is still a lot of money, but that is a long way from $5 billion,' said Michael Lombardi, chairman of the gaming commission for the Augustine Band of Cahuilla Mission Indians near Coachella.

"Maybe these numbers will wake (Davis) up,' Lombardi said.

State gaming tribes likely account for much of the increase seen, Lombardi said, estimating that they made $2 billion in 2001 and $3.4 billion in 2002.

But he said because the 51 Indian gaming operations in the state are limited to only 2,000 slots per site up to 90 percent of each casino's revenue they cannot meet all the demands of gamblers.

"Right now market forces are not a factor limiting Indian gaming, politics are,' Lombardi said.

Tribes also are building casinos off their reservations such as one in Niagara Falls, N.Y., said William Thompson, a gambling expert at the University of Nevada, Las Vegas. Under federal law, governors have the right to block these deals, but a few state leaders are supporting this development in exchange for more revenues for state coffers.

Established tribal casinos eventually will try to block new Indian competitors, Thompson said.

"We're doing well in Vegas but would be doing better without' Indian gambling in California, Thompson said.

The data show that the number of Indian gambling operations making more than $100 million a year has nearly doubled in five years to 41 in 2002, with an average revenue of $229 million.