Are All Casinos in California Owned by Native Americans?
No, but the vast majority – around 92% – of California casinos are owned and operated by Native American tribal nations. Out of 66 casinos across the state, 61 are tribally-owned.
Brief History – Legal Basis for Native American Gaming
Gaming on sovereign tribal land in California has its roots in the landmark federal Indian Gaming Regulatory Act of 1988. This legislation established the framework for tribes to operate casinos and negotiate compacts with states.
After voter passage of two key propositions, California voters amended the state constitution to allow casino-style gaming exclusively in tribal facilities. Today, the state has signed compacts with over 60 tribes permitting Class III Vegas-style gaming.
By the Numbers: Scale of Tribal Gaming Market
California tribal casinos now total over $8 billion in annual gaming revenue, more than any other state. Across 66 facilities they operate:
- 70,000 slot machines
- 2,000 table games
- Large-scale resort complexes attracting over 20 million visitors each year
Number of Casinos by Ownership
| Owner | # of Casinos |
|---|---|
| Native American Tribes | 61 |
| Non-Tribal Cardrooms | 90+ |
Approximately three quarters of the 109 federally-recognized tribes in California participate in gaming. The top 5 largest tribes by gaming revenue generated:
- Pechanga Band – Pechanga Resort Casino had a hotel expansion to over 1,300 rooms in 2022 along with adding 700 more slot machines.
- Morongo Band – Morongo Casino has 310,00 sq ft gaming space and remains one of the largest Indian casinos nationwide.
- San Manuel Band – Yaamava‘ Resort completed a $760M expansion adding a 17-floor hotel tower in 2021.
- Agua Caliente Band – Owns casinos in Rancho Mirage and Palm Springs, with 460 combined hotel rooms.
- Barona Band – Barona was just ranked the #1 casino in the U.S. for the second year in a row.
Slot Machines and Annual Revenue of Top 5 Tribes
| Tribe | Slot Machines | Annual Revenue |
|---|---|---|
| Pechanga Band | 5,500 | $400M+ |
| Morongo Band | 3,000 | $300M+ |
| San Manuel Band | 5,000 | $300M+ |
| Agua Caliente Band | 2,400 | $200M+ |
| Barona Band | 2,500 | $200M+ |
Revenue Sharing with State and Local Governments
As part of compact negotiations granting tribes exclusive slots rights, California receives a cut of 7-13% of slot machine revenue depending on the tribe. From 2000-2020, this resulted in:
- $9+ billion paid to the state
- Hundreds of millions to local municipalities
- Billions more invested in tribal programs for housing, health care, education, cultural preservation and more
Non-gaming tribes also benefit from the Indian Gaming Revenue Sharing Trust Fund (RSTF) – funded from gaming tribes – which provides grants supporting self-sufficiency.
Non-Tribal Cardrooms
California also has over 90 licensed cardrooms that offer certain card games and pai gow tiles. However, these facilities cannot operate tribal-style Class III Vegas games like slots, craps, roulette without a compact. Revenue at cardrooms pales compared to tribal casinos.
Cardrooms have lobbied to legalize sports betting after a recent state constitutional amendment allowing it at tribal casinos and horse tracks. However, tribes have exclusivity over gaming expansion on their lands.
Scale Compared to Other Major Tribal Gaming States
California leads the nation in Indian gaming revenue, ahead of other top states:
- Oklahoma – Over 130 tribal casinos
- Washington – 28 casinos
- Connecticut – Foxwoods and Mohegan Sun
- Arizona – 24+ gaming facilities off highways
Combined with local card rooms, California offers by far the most gaming locations out of states allowing commercial + tribal casinos. However, the Native American gaming market generates over 80% of total annual revenue.
FAQ
Here are answers to some frequently asked questions:
Do tribal members own casinos individually? No, casinos are tribal government enterprises supporting programs that benefit the reservation community. Per capita profit payments are made to enrolled members in some cases.
Can anyone visit and gamble at Indian casinos? Yes, Native American gaming facilities are open to the public, not only tribal members. You do have to be 18/21 or older to gamble.
Are all employees at tribal casinos Native American? No, employees come from many backgrounds. However, casinos provide an important source of jobs for tribal members.
Do Native American casinos pay state taxes? No, as sovereign nations tribes do not pay corporate taxes. But compacts negotiated with the state determine revenue sharing rates.
I hope this detailed overview provides lots of great insights into the world of Native American gaming in California! Let me know if you have any other questions.
