Study: Indian casinos a $7.5 billion boon

A quarter-century after gaining a foothold in California, Indian casinos have proved a bonanza for San Diego County and the rest of the state, spurring $7.5 billion in annual economic activity and creating at least 52,000 jobs, according to a study released Wednesday.

The report, commissioned by the California Nations Indian Gaming Association, highlights the upside of the industry, noting that many nonreservation communities also benefit through indirect spending and tribal philanthropy.

“California gaming tribes have done well for our people, and done well for our neighbors,” said association Chairman Daniel Tucker, who also leads the Sycuan band of Indians in East County.

Tucker unveiled the study at a press event in Sacramento, calling the report the first of its kind in a state where some 60 tribes operate gaming halls. San Diego County is home to 10 Indian casinos, the highest concentration in the nation.

Cheryl Schmit, with the casino watchdog group Stand Up For California!, said the study provides a rare window into how gaming has helped lift many tribes out of poverty.

She said, however, that it fails to assess any negative economic impacts, including the loss of tax revenue to county governments and school districts as some gaming tribes move to expand their reservations. Casino critics over the years have also noted the impact of lost wages due to problem gambling.

“I’m glad the tribes are doing well, but the report is incomplete,” she said.

The $7.5 billion in economic activity cited in the study includes $3.5 billion in spending at casinos. Most of the rest goes to indirect sources, such as companies that supply food to casino restaurants or those that build road improvements near reservations.

In addition, an estimated four out of five casino employees are nontribal members, the study says. The 52,000 jobs created by Indian gaming include 30,000 positions directly related to casino operations.

The study was conducted for the gaming association by Beacon Economics, a research firm. The numbers are largely based on data provided by 13 tribes or tribal bands, including Sycuan, Viejas, Pala and Rincon, all in the San Diego area.

For example, Viejas Casino last year paid $5.2 million in taxes and employed nearly 1,400 people, according to a spokesman.

Schmit believes the 13 tribes studied is too small a sample to gauge the statewide economic impact. But a Beacon executive said the group was big enough, and varied enough, to draw credible economic conclusions.

The 40-page report also emphasizes the community-building and charitable giving that grows out of gaming operations.

San Diego County’s biggest gaming tribes are major sponsors of off-reservation events and have pumped millions of dollars over the years into improving and promoting local sport venues, hotels and other attractions.

The gaming association says the casinos keep money in the state that otherwise might be spent in places like Las Vegas. Many San Diego-area casinos opened their doors starting in the 1980s. Some began as small bingo halls and have since transformed into glitzy resorts with high-end restaurants and golf courses.